By Brendan Coffey, Editor of Cabot Green Investor
From Cabot Wealth Advisory 11/25/10 Sign up for free Cabot Wealth Advisory e-newsletter
$33 trillion in new spending will be needed in the next two decades to meet world energy needs, according to the recently released World Energy Outlook from the International Energy Agency. That’s a lot of opportunity for Green and it brings me to my stock suggestion for this edition: MasTec (MTZ).
MasTec is a long-established firm out of Florida that had been known mainly for installing DirecTV satellite dishes. Management made a successful effort to de-emphasize that business three years ago, so while DirecTV sales continue to grow, today they are far less significant as a percentage of sales. Powering growth are Green areas such as building the electrical infrastructure for solar farms and wind turbines. In its latest quarter, four of MasTec’s top 10 customers were using the company for wind turbine projects and the company will claim 25% market share of the U.S. wind business this year. MasTec is also a growing player in constructing new natural gas pipelines. Through 2012, energy industry projections are that 6,000 miles of new pipeline will need to be built. MasTec expects to be competitive in bidding for every one of those $1 billion or so in projects.
Adding to business nicely is booming business in helping AT&T expand its cell phone infrastructure to meet iPhone customer demand. The technicals look promising too, with shares recently experiencing a crossover of the two upwardly trending moving averages, often a very bullish signal.
Here’s hoping that will be one more thing to be thankful for. Whatever you’re doing this Thanksgiving and whatever your circumstance, I hope you take the time to reflect on the good fortune life has brought you.
P.S. Cabot Green Investor, is up 14% year-to-date, including open positions. That’s even better when you look at the market. The best four Green mutual funds, are down an average of 5% this year and the Green stock benchmark, the WilderHill Clean Energy Index, is down 11% year-to-date. Learn more about this market-beating newsletter today!
Analyst and Editor of Cabot Green Investor
Brendan Coffey is a member of the Cabot investment team and editor of Cabot Green Investor. A veteran financial journalist, Brendan has spent more than a decade writing about investing for publications including Barron’s, Forbes, The Wall Street Journal and a number of private-client brokerage newsletters.