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The Infrastructure Stimulus

Written By Nick Hodge

Posted January 9, 2009

This is easy money.

And nobody has really articulated it clearly and simply yet.

The stock market took an absolute beating last year as companies, in some cases, were knocked down 50% or more.

Easy math is all you need to make 100% gains in this type of climate.

Here’s what I mean.

If a stock trades for $100 and gets knocked down to $50, it took a 50% hit. But simply returning to earlier trading levels means a doubling of your money, or a 100% gain.

This is what members of the Alternative Energy Speculator (AES) are experiencing right now. And you can join them.

But first, let me illustrate my point a bit further.

How a Negative can be Positive

Look at the following chart of stocks I recently recommended to AES readers:

infrastructure stimulus

For the six-month period shown, three of the five stocks listed are still in the red. But readers of AES made money all five of them.

While I can’t tell you the names of the companies unless you become a member, I will tell that one of them is a water company, two are energy infrastructure companies, and two are solar companies.

I knew that after the Obama election green energy stocks would enjoy a nice bounce. But I also knew that talk of an infrastructure stimulus, now topping out at over $850 billion, would send them even higher.

So, even though the stocks were severely battered—down well over 50% in some cases as you can see from the chart—I recommended them to my readers, knowing there was great upside ahead.

Now, just a few weeks later, we’re sitting on monster gains from all those companies, over 60% in the case of one solar stock. Best part is, that solar stock is still down over the past six months. It’s the black line in the chart, and there is much more to come.

When all is said and done, my readers will be walking away with well over a double on just this one stock.

And there’s much more to come.

Infrastructure Stimulus: Less than a Month Away

As I said, some of the stocks we’re reaping profits from haven’t even broken even when you look at them over the past two quarters or so.

But as they climb back to levels of early 2008 and higher, smart energy investors are going to make a killing.

And it doesn’t hurt that we have the Federal government at our backs.

Just yesterday Obama declared that "we will double the production of alternative energy in the next three years." According to the soon-to-be-president, "We will modernize more than 75 percent of federal buildings and improve the energy efficiency of two million American homes, saving consumers and taxpayers billions on our energy bills."

That’s going to be paid for, in part, by the massive infrastructure stimulus now being planned by Congress. And green energy infrastructure and efficiency companies will benefit across the board.

When that $850 billion is freed up, the associated stocks will be off to the races.

The 60% we’ve taken so far while the stocks are still down over the long-term will we nothing compared to the bottom line after this stimulus is passed.

I’ve already prepared my readers for the run. You need to be prepared too.

Take a moment to read all about the coming infrastructure stimulus and how it can benefit your portfolio.

It could be the only thing you need to secure easy profits in 2009.

Call it like you see it,

nick hodge


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