More on Infrastructure
There’s been a universal consensus that Obama’s aggressive new plans for developing American infrastructure would be good for the construction sector, but so far we’ve been rather short on specifics. Below we have Sham Gad’s observations on the recent two day rally in the construction sector.
So far the market believes Obama’s infrastructure job creation plan. Today, the sector is out-performing the market handily after double-digit percentage gains yesterday.
Fluor is up 9%; KBR up 7%; Shaw is up 16%; Granite Construction is up 5%.
Many of these businesses were absurdly cheap to begin with. I would expect that money on sidelines will find it’s way first to simple basic boring businesses.
Position: Long KBR
Posted: November 25th, 2008 under Construction, Infrastructure, Obama.
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Time: February 14, 2009, 3:19 pm
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