Hubbell Inc. (NYSE:HUBB)

Hubble is the 800lb gorilla of the electrical power transmission hardware industry. With the massive planned overhaul of the national power grid look for a significant fraction of the $850 Billion stimulus package to go indirectly to Hubble. Why indirectly, because utilities bid out large scale projects to engineering firms and the firms in turn bid them out to manufactures and construction companies.

Hubble can control its cost better than its competition because it is vertically integrated with its own foundries and manufacturing facilities in the US, Canada, Brazil, and Western Europe. The foundry and plants in Brazil also give Hubble access to the South American market.

Hubble has alliances with Conductor and Insulator companies to make it a one stop shop for any power transmission project.

Did I mention that Hubble is big? Its more than twice the size of its nearest competitor, it presses this advantage to the fullest. From the beginning of hurricane season through the end of winter Hubble maintains a sizable inventory of products. Why because when you see news of the latest storm/ice/wind disaster that has cut power to thousands who do you think gets the call? That’s right Hubble, and because Hubble is the only player large enough maintain such an inventory they charge a premium for the hardware (it’s called an expediting fee and is usually 20% or more above the standard price for bypassing the standard 6-8 week lead time). And the utilities pay it because there is literally no one else to turn to.

In other word Hubble is one of those companies that most people have never heard of, don’t care about, and are absolutely necessary for maintaining the standard of living for most of the people in the US take for granted.