2009-03-04

Government Handouts and Easy Profits From Infrastructure Stocks

Energy infrastructure stocks, as an investment category, is hard to define.

It encompasses everything from high-tech software companies that are enabling the smart grid to construction companies-turned-wind-farm-builders―and everything in between.

As such, energy infrastructure stocks are the backbone of the renewable energy industry. They're the tie that binds, no matter how the energy is being produced. And they have a big role in efficiency as well.

These are the top stocks responsible for a clean energy future. And as investors, you have to face the fact that they're being singled out for success by Congress and the President.

It's not the market we're used to, and it hasn't been for quite some time. But that doesn't mean you can't harness the government's market meddling for some serious profits, especially if you know who the winners will be.

Energy Infrastructure Stocks: Congress' Love-Thing

On the front end of energy infrastructure are the heavy-lifters, the companies putting steel and wire in the ground and in the air, and the companies that make sure it all happens smoothly.

This sector is slated to receive special treatment from our current legislative powers, guaranteeing business for the companies that operate here and profits for your portfolio at the same time.

Here's what I mean. . .

The recently-passed stimulus contained $11 billion for advanced clean energy transmission technologies. But that was only the beginning of the Congressional love affair.

Since that bill passed, Senate Majority Leader Harry Reid has said he'll "introduce legislation this week to speed approvals of transmission lines that send renewable power across the U.S.," according to Bloomberg.

Under that plan, the federal government would designate renewable energy zones in strategic areas of the country to "maximize the use of that renewable potential by building new transmission capacity."

According to Bloomberg, "The measure would give the federal government, through the Federal Energy Regulatory Commission (FERC), eminent domain authority to site power lines if the states are unable to get plans approved."

This is a "Big Government" idea that gained traction under the Bush administration in 2005, when it granted the FERC authority to permit new lines in congested areas if state regulators failed to act.

You see, federal paving of cleantech's road to profit began long ago. It's time you take advantage and harness some of those favors for your portfolio.

Energy Infrastructure Stocks: The Affair Continues

The Congressional love affair with cleantech has gone to far to conceal. Their only option now is to go public with it and forge on, so the relationship can blossom.

And blossom it shall, with your portfolio riding shotgun.

On top of Reid's expanding clean energy transmission―and profits―by force, a number of other senators―and even the President―have called for additional incentives for the industry.

Obama has committed to building 3,000 miles of new transmission lines by 2012. He's promised to double our use of renewable energy in the same time.

And Senator Jeff Bingaman―who has clout as the chairman of the Energy and Natural Resources Committee―has promised to have broad energy legislation, complete with national renewable energy mandates, through that committee in "four to six weeks."

The time is now to jump on the energy infrastructure stocks that will benefit.

That's exactly what readers of my Alternative Energy Speculator are doing. Take a look at this snippet from a market update I sent them yesterday:

I also wanted to alert you to the falling share price of American Superconductor (NASDAQ: AMSC). I think anything under $18.00 for this top stock is a gross discount given its mounting exposure to wind and green infrastructure markets.

The stock market is currently trading around $12.11. Let's double down on this one. That will ensure nice gains as the market rebounds, and as the company takes advantage of stimulus-related benefits.

And look what happened in early trading of American Superconductor today:

chart of wind company american superconductor (nasdaq: amsc)

The best stock shot up more than 15%, from a previous close of $12.94 to $14.98.

Gains like this, on a wide variety of energy infrastructure stocks, will be commonplace as money from the stimulus starts being doled out and other favorable legislation makes its way through Congress.

In fact, we closed out a 13% gain on JA Solar just this morning. We only held the best stock for one day.

And many more cleantech profits will stem from the companies outlined in my recent report, Infrastructure Investing: Sky-High Underground Profits. Thousands of investors have already read and acted on that report's advice. You can learn how to join them today by clicking here.

But the 10 green infrastructure stocks included in that report are only the beginning of years of easy cleantech profits. Membership to Alternative Energy Speculator also includes numerous other reports that outline specific profit paths for individual sectors, like solar and wind energy.

Plus, you get instant alerts whenever the market deems them necessary. . . like the one yesterday that led to quick 13% on JA Solar.

Those instant alerts are also where I tell subscribers my thoughts on upcoming plays, like how I think Tetra Tech (NASDAQ: TTEK) is ripe for the picking after its recent four-day slide.

We're profiting from these government hand-outs one by one.

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