Double Your Money Every Week in 2010
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#4 Shaw Group (SHAW)
By Chris Johnson and Jon Lewis
Shaw Group (SHAW) isn’t based in New Orleans, home of the Saints,
but it is nearby in Baton Rouge. So it’s close enough, and it looks like it could be a winner. The company provides various construction and engineering
services to an array of industries, utilities and government agencies. For example, the Air Force just awarded SHAW an environmental restoration and
construction contract that extends through 2014.The heavy construction industry took its lumps during the recession, but the dark days appear to be behind the sector, as money — both public and
private — should begin flowing more freely into major construction and infrastructure projects. Two areas that SHAW is well-positioned to benefit
from are clean energy and nuclear power. The company is actively pursuing contracts to upgrade existing nuclear facilities, work that could generate
several billion dollars in revenue. Also, President Obama called for more investment in clean energy, and that plays very well into SHAW’s expertise
in constructing plants and transmission systems.This will not be a quick-turnaround play. Money is leaking out slowly and trimming the deficit is a hot topic right now. But the long-term view
favors SHAW and other construction firms such as Foster Wheeler (FWLT)
and Fluor (FLR). As such, we recommend playing the SHAW Jan
2011 35 Calls. By then, SHAW will likely have inked a few major contracts that should boost its bottom line.
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