The other day we had a stock trading near all-time highs; today’s recommendation is the opposite: a stock trading near its historical lows. While these two stocks probably won’t appeal to the same investors, today’s is more appealing than it sounds. This stock tested — and found — support near current levels twice last year. And while being back there is no good for investors who already own the stock, another bounce could provide some nice gains for new buyers. Just follow Jeff Siegel’s advice, fromGreen Chip Stocks:
“MYR Group, Inc. (MYRG) is one of the largest contractors serving the transmission and distribution sector in the U.S. The company’s clients include more than 125 electric utilities, cooperatives and municipalities.
“MYR’s services include: Powerline construction (transmission, distribution and substation), storm response, commercial and industrial services, telecommunications construction, traffic signalization and, of course, modern alternative energy.
“Now MYRG got into the alternative energy game back in 2003, when it began constructing substations, transmission lines and collector systems for wind and solar farms. Some of the company’s more notable renewable energy projects include:
“Milford Wind Farm, Milford, UT: 88 miles of 345 kV transmission line; Fast-track construction schedule of 23 weeks.
“Rugby Wind Power, Barton, ND: 10 miles of single circuit 230 kV transmission line; 38.3 miles of 34.5 kV overhead and underground collector system; New 230/34.5 kV collector substation.
“Cedar Creek Wind Farm, Grover, CO: 74 miles of 230 kV transmission line; New 230 kV interconnect switching substation.
“Waste Water Solution Array Project, Rifle , CO: Pull 5 kV cable from 2 solar array structure for Sun Edison’s inverter/transformers.
“Red Hills Wind Farm, Elk City, OK: Four miles of 138 kV transmission line; 20 miles of 34.5 kV collector system; New 34.5/230 KV substation.
“Crystal Lake Wind Farm, Clear Lake, IA: 36 miles of 16 kV transmission line; 230 kV collector substation.
“MYR was also the prime contractor for the 1.5-megawatt solar farm in Hagerstown, MD, and provided substation, engineering and permitting for the 30 megawatt Cimarron Solar Park in Springer, NM.
“Some highlights from Q4 and FY 2011 results include:
“Q4 2011 revenues of $234.3 million, compared to Q4 2010 revenues of $155.1 million.
“Full Year 2011 revenues of $780.4 million, compared to full-year 2010 revenues of $597.1 million.
“Year-end 2011 backlog of $692.8 million compared to year-end 2010 backlog of $520.9 million.
“Executed a new five-year $175 million revolving credit agreement.
“Despite some positive highlights, margins got hit, and the stock tumbled last month. Still, there are a lot of analyst buys on this one. And I’ve seen price targets ranging from $27.00 to $40.00. I think the latter is way off base. And I actually think $27 is also a bit aggressive. But I don’t think it’s out of the question to put a $23 price target on this one.
“Overall, this is still a solid play on transmission and distribution. And construction in the energy space is not waning. MYRG has a significant piece of this action.”
- Jeff Siegel, Green Chip Stocks, April 19, 2012