Infrastructure: Could it be the magic word for a stock-market investor? Jack Kasprzak of BB&T Capital Markets is keeping his eye on President Obama's plans to pump money into major construction projects — and the potential effects on some well-positioned smaller companies.
Topping his list is cement producer Cemex .
"The company's business in the private sector, not surprisingly right now, is not very good — but as we roll into the back half of '09, once the stimulus dollars are in play, and into 2010, the overall economy's maybe looking a little better, you're paying about five times cash flow for the stock today; we think that's a reasonable valuation," he said.
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He also likes Orion Marine Group.
"This is an out-of-the way name for stimulus, but it's marine-related...dredging of ports, making them deeper and wider," he said. "Orion's a play at four and a half times cash flow, that we think is pretty interesting here."
Cemex is an investment banking client of Kasprzak's firm, which also makes a market in the securities of Orion Marine Group.