A way to profit from crumbling bridges? / a crumbling dollar / a bear market rally / mysterious crumbled bills
Today is day one of my scheduled four day "stay-cation." My family and I drove across the Tappan Zee Bridge to visit the The Maratime Aquarium in Norwalk, Connecticut (we had a great time). The reason that I mentioned the Tappan Zee Bridge is when we were on it I thought to myself, "Man this bridge is really a piece of ship. I hope that it doesn't collapse." A timely report on the current state of bridges in the United States was published by the American Association of State Highway and Transportation today. It claims that the United States' bridges are in such a state of disrepair that it would cost more than $140 billion to repair all of them if work started immediately.
I realize that the government is currently strapped for cash and that there isn't much money around to find major projects, but looking down the road if the likely next president, Obama, is able to shift funding from the war in Iraq to spending at home it might go to infrastructure projects like repairing our country's crumbling bridges. If this were to happen, what companies would benefit? One that comes to mind is URS Corp. (URS).
URS provides planning, design, engineering, program management, and technical assistance, for construction projects. There are a lot of trends going on right now that could potentially benefit this company, including our country's inadequate power generation capacity, the need for new water / wastewater treatment plants, the big money that is being earned in the oil and gas sector, and the aforementioned need for bridge building and repair.
URS' stock has been basically flat over the past six months, which is pretty impressive in today's market. Its P/E is currently 17.5, which isn't bad for a company that has been hitting analysts' earnings targets and is expected to grow by almost 19% in 2009. I plan on adding URS to my CAPS portfolio.
The decrepid Tapan Zee Bridge
- White House projects record deficit for 2009: Congratulations on setting a new record guys. Huge deficits are just the way to create the strong dollar that you claim to believe in.
- No Recession? No Inflation? Don't Make Me Laugh!: A great post by Barry Ritholtz over on The Big Picture. Here's a great quote:
"The anticipated bear market bounce in Financials has led to the usual fools' chorus that the worst is behind us, the economy is on the mend, and a recession is avoided. If their song sounds familiar, it is because you heard the same tune with the home builders, and the same melody with the monoduoline insurers.
For those with their head in the sand, here is a broad and varied look at where the economy is contracting. Note that this isn't a cherry picked list of negatives -- it is the crème de la crème of corporate America, ranging from consumer to finance to industrial to transports, and includes such stellar names as Apple, Toyota, American Express, UPS, Catepillar, Costco and JPMorgan. (There's not a slouch in the bunch!)"
- Buried loot a mystery for authorities: This is one strange story. Excuse me while I go spend some quality family time digging holes in my back yard looking for lost millions of dollars.
No position in URS
One of the cool poison dart tree frogs that I say this afternoon.