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JimVanMeerten (65.25)

Invest in infrastructure

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December 16, 2010 – Comments (0) | RELATED TICKERS: AMN.DL2

With the world wide economy poised for expansion there's a lot of money to be made in infrastructure construction projects, so this morning I added Ameron International ( AMN) to the Barchart Van Meerten New High Portfolio.

They are a multinational manufacturer of highly-engineered products and materials for the chemical, industrial, energy, transportation and infrastructure markets. Traded on the New York Stock Exchange, Ameron is a leading producer of water transmission lines; fiberglass-composite pipe for transporting oil, chemicals and corrosive fluids and specialized materials and products used in infrastructure projects. The Company operates businesses in North America, South America, Europe and Asia. It also participates in several joint-venture companies in the U.S. and the Middle East.

Basically AMN will supply the pipes and poles to move petroleum, chemical, water and electricity  They make their products in concrete, steel and fiberglass. 

The stock came under my radar when screening on Barchart for stocks hitting new highs.  The stock currently has momentum hitting new highs in 18 of the last 20 trading sessions for a 25.59% gain.  That earned the stock a 96% Barchart technical buy signal.  The Relative Strength Index is 83.69% and rising.  It currently trades around 84.10 which is well above its 50 day moving average of 69.85.

Wall Street brokerage analysts are beginning to notice this company and both of the analysts following them have published Strong Buy reports.  The concensus is for a 9.40% increase in sales and a 32.40% increase in earnings for the coming year.  EPS growth at an annual rate of 12.00%  is expected for the next 5 years.

It seems small investors have beaten the big boys to this stock with the CAPS members on Motley Fool voting 208 to 15 that the stock will beat the market.  The vote of the more experienced All Star group is a solid 81 to 2 for the same result.  Fool notes that the last 4 articles by Wall Street columnists have been positive.


Put this one on your watch list and remember:

1 - 96% Barchart technical buy signal

2 - 18 new highs and up 25.59% in the last 20 trading sessions

3 - Wall Street Strong  Buy recommendations based on increased sales and earnings

4 - Positive investor sentiment

Jim Van Meerten is an advisor to Marketocracy Capital Managementwho uses his model portfolios not only to manage their mutual funds but also their clients Separately Managed Accounts. You can read his blogs about those model portfolios and investing here and on Barchart Portfolio Blogs. Please leave a comment below or emailJimVanMeerten@gmail.com.

Disclosure: Jim Van Meerten through Marketocracy Capital Management has an interest in the stocks mentioned in this blog.

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