Sunday, January 20, 2013

"Infrastructure. Can't live without it. Always need more of it. Mastec is the company that builds it."

Dow Jones Industrial Average 13,649.70 (Up and a 5 year high) - Week ending 01-19-2013

Each year our population rises and demand on the services provided by of our infrastructure continues to  increase. Electricity, Water, Gas, Sewers, Communications and all the delivery systems  that provide essential services to people must be expanded, improved and repaired to keep up with demand. One company that fills all these needs is a company called MasTec Inc.  

MasTec Inc. (Symbol MTZ, $26.85 ) is a company that does all these things.

Return on Equity 14.48 and PEG ratio 0.86.
(ROE is slightly below my 15.00 minimum requirement rule, so a slight bit of speculation here, but I wouldn't lose sleep over it.)

MasTec is described in it's profile on CBS MarketWatch as " an infrastructure construction company. The company is engaged in designing, building, installing and maintaining infrastructures which include the engineering, building, installation, maintenance and upgrade of energy, communication and utility infrastructure, such as electrical utility transmission and distribution, natural gas and petroleum pipeline infrastructure, wireless, wire line and satellite communications, wind farms, solar farms and other renewable energy, natural gas and petroleum pipeline infrastructure, wireless, wire line and satellite communications, industrial infrastructure and water and sewer systems. Its customers are primarily in the utility, communications and government industries." 

Earnings per share for Mastec for 2012 are looking like $1.47-$1.49. For 2013, they are projecting $1.89 per share. The One Year total return on the stock is 47.85%. The 3 year return is 108.9 percent , so this stock has done well.  The 5 year average sales has bee 37.99%. The one year earnings growth has been 48.4% , but the five year rate -246%, so earnings have not shown consistency. I think you can take up a position in this stock right here when the market opens on Tuesday.

Things should get off to a fast start this week with Apple and Google reporting earnings. These two stocks were the mainstay holding of allot of mutual funds in 2012 and could be a bell-weather of where we go from here. Also reporting will be IBM, 3M Company , Microsoft and Johnson & Johnson. 

The markets are closed tomorrow for the Martin Luther King Jr. holiday so we will have a short trading week. So if you are able do something good, help someone in need this week. It could even be your older neighbor next-door, they always need help with something.  

Leave me a comment with your favorite stock and we can look at it together.


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