Investing in Energy

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I have seen (and usually avoided) the discussions about investments, stocks ect.

I have also seen a lot of talk about alternative energy and investments there.

Here is your investment tip for the day from some big wheels, via your lowly old Sol.


Look at Quanta Services. There has been a big push to build wind farms recently, and talk about substantial money being spent to do so. The problem is that wind farms, for obvious reasons, are built mostly in the boonies. The trick is to get the power from out in the middle of nowhere to the grid where it can be used.

Thats where Quanta comes in. Quanta is one of the biggest and best qualified utility construction corporations in the business. The energy infrastructure in the USA is aging and will not be able to handle the loads in the near future. Huge portions of the infrastructure will have to be rebuilt.

And Quanta is one of the biggest players.

That and you investments will help them grow and spend more on their employees at the various operating units. I happen to work for one of those.
 
They'll be building one at the border of my county very soon. Good company, long-termers will like it.
 
Topspin said:
not to me it's not, at a high level there earnings are down.
I only pay high pe's for things growing or solar which is a long shot future bet
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William O'Neill's study of the greatest stock market gainers from 1953 to date revealed that the greatest gainers had an average P/e of 47 before starting their run. p/e is irrelevant.

5 year EPS growth is my favorite indicator.
 
I'll have to read up on that.
I bet a lot of those are new businesses. Electricity Generation is a Mature industry.
If you want a high P/E declining earnings and no dividend stock have at it.
I don't mind a high P/E in solar or apple, but not in an oldy but goodie
 
Topspin said:
I'll have to read up on that.
I bet a lot of those are new businesses. Electricity Generation is a Mature industry.
If you want a high P/E declining earnings and no dividend stock have at it.
I don't mind a high P/E in solar or apple, but not in an oldy but goodie
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Even with O'Neill's study, Graham and Dodd's p/e to growth rate correlation still has validity. Since the newer companies is where I trade (rather than utilities) p/e is not a factor in my screening decisions.
 
that would include a lot of tech bubble companies???

how old is pwr, and I think your screen is great.
 
Topspin said:
that would include a lot of tech bubble companies???

how old is pwr, and I think your screen is great.
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I'd love to take credit for identifying PWR, but that wasn't me. I think it was Dave(?)

I don't trade companies that have been listed less than 5 years. I like a track record, and it's kind of hard to use a 5 yr EPS growth as the favorite indicator when there hasn't been 5 years. Bubble companies are not off the list. I can and do make money on them by staying sane on the levels of risk. I've been on trading discussion boards where noobs are posting where they put 1/2 or even all their capital in one position with no stop in place and no exit plan. THAT'S INSANE.

One of my best picks lately was SM at $39, went to ~$64, backed down to my trailing stop at $58.50 and I got kicked out. Here it is a little over a week later and SM is ~$47. So I came out with a +6.5R on the trade.
 
was overtaught in grad school to invest in broad market. That stopped working with the tech bubble.
Now with banks, and auto's looking like I won't touch them with a ten foot poll and my run in oil getting long in the tooth. I'm going to start looking at mid and small caps with the earnings growth track records too.
 
Topspin said:
that would include a lot of tech bubble companies???

how old is pwr, and I think your screen is great.
Click to expand...

They have been around as a publically traded company for about 10 years. They bought the company I work for about 8 or 9 years ago.


Just as an FYI, the buzz is that there will be about $6.5 billion worth of work building the transmission lines from the wind farms. Several sources think Quanta will haul in about 80% of the work. In the world of building transmission lines, we are the best on the planet. We are also at the leading edge for building municipality owned fiber networks. We just completed one that gives home users internet speeds of up to 100mbs. Time Warner & Comcasts top packages go to 10 or 15 mbs. Ours are pure fiber optics from the sources to the wall plugs. No copper in the system.
 
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