Is it time to get into infrastructure?

Question

A lot of the research I've been doing lately has been screaming at me to buy infrastructure and it's not just Cramer. US has got to fix that power grid, build more plants and the world needs more energy infrastructure in general to meet with increasing demand. I already have CAT but is it time to buy Foster Wheeler and Haliburton? What important is can anyone see a mini infrastructure craze happening because the markets are itching to get out of the state it's in? If infrastructure does take off will steel as well?

Answer 1

Cramer will be Cramer..we all know that. However, I will tell you that his picks HAL, FWLT, URS, WTR, ABB are all very good. I recently took a trip to tour how the rebuilding efforts were going...and they were humming along soundly. I must say tho...some deriviative plays i would look into are HEES, CX, FRK, RMIX, KSU, and GE.

I think that you have a sound name with CAT...most of the construction equipment downthere was CAT...although i saw some KUB and MTW equipment around there as well, but mostly CAT equipment moving around. It's just a matter of time in my opinion before CAT break 100 and issues a 2-for-1 split. I think the split will happen before it hits 100 in my opinion, however...I think that HAL is a somewhat good stock to be holding onto for a trade when hurricane loom to hit the coast of the good ole US of A, and are also good for a long term holdings (and that goes for FWLT), and the thing is that China is still expanding--its slowing but still roaring...because of all that...copper, nickel ,zinc prices continue to trade at a premium..along with the aggregate demand for cement and concrete (and it is very hard to get those over there) So CAT equipment is absolutely essential over there. You're absolutely correct in thinking that metal prices are taking off....in fact..they are the sole reason for why prices are taking off....metal companies are also a pretty good investment in itself as well

Happy Trading
-Paul

Answer 2

Yes on all counts. Don't bet the farm on that one sector, because it may take a long time before it heats up to the point of being a huge winner. Dabble for now, follow the companies and their stocks for a while, and then as this finally becomes a big issue, as it will, then you'll be prepared to throw long with the bulk of your cash.

Halliburton is a great company but I recently got out. They lost their exclusive on international government contracts. Now, they can do OK without those contracts, but the public attitude is so sour on them for political reasons that I thought it would be best to lay low for a while. Long term I like them, though.

Best of success.