The Golden Age of Infrastructure

https://www.linkedin.com/pulse/golden-age-infrastructure-audy-desaubin


This is where my recommendations for playing the infrastructure boom get really interesting.
The company I’ve just told you about has a major stake in this company.
It’s a beaten-down mining services stock I doubt anyone else in the market is paying much attention to.
Because, let’s face it, people love to hate mining stocks right now.
But as a value investor, that throws up a few rare opportunities to buy sound companies at very low prices.
I mentioned that my first pick’s new Spanish owners are currently restructuring.
They’re trimming the fat and creating a lean, mean, moneymaking machine.
As far as I can tell, THIS business remains important to the new owners. Which makes this company a potential takeover target down the track.
However, that’s not the primary reason behind the recommendation. This is another classic case of a stock that has gone through some hard times, but is now coming out the other side.
These guys traditionally operated in the coal sector. The company is a world-class builder of coal handling and processing plants.
These days, they’re exposed to a broader range of commodities and geographical markets.
The business has always had an international and multi-commodity capability.
It targets work across a range of minerals and geographic locations.
It ‘creates’ projects via winning feasibility study work, then ‘builds’ the project via the design, engineering and construction phase.
Finally, it maintains the business via ‘operating’ contracts.
That means these guys collect cash from EVERY phase of a project. So you can see why the big bosses back in Spain might be keen to launch an outright takeover.
If that happens…the currently beaten-down stock price could rocket.
Right now this company’s order book and pipeline are as strong as they’ve been since at least June 2013.
The pipeline of work is now worth $2.7 billion.
That means it is bidding on contracts with that dollar value. It won’t win them all, but it goes to show there is an increasing amount of work out there.
To sum up: This stock has gone through a tough period. But, like my first pick, the business has realigned its cost base and refocussed its strategy. The timing looks perfect...because the Golden Age of Infrastructure is going to benefit precisely these sorts of stocks.
Right now you can buy shares in this great little company for just 71 cents a share...plus pick up an 8.4% dividend yield.
I believe that represents outstanding value for you as an investor.
I don’t like to predict the type of returns a stock could make. If you do the work, the stock price will take care of itself. But if I’m right about this stock, I can see it easily doubling in the years ahead.
Along with a fat dividend, that’s a brilliant risk and reward trade off in this market.
I’d like to give you the full details of this recommendation right away.
Because like my first pick…conditions are ripe for a new kind of boom to propel this company back into favour — and drive its stock price considerably higher.

Took me ages to find these guys but I finally have!