Thomas Vass: If Obama wins ... build infrastructure gains
Oct 06, 2008

"Obama is expected to create a national infrastructure reinvestment bank to expand and enhance existing federal transportation investments," says tech specialist Thomas Vass.

The editor of The Technology Stock Advisor explains, "Our pick to benefit from a boost in infrastructure spending is Ingersoll Rand (NYSE: IR)."

"The national infrastructure reinvestment bank will receive an infusion of federal money, $60 billion over 10 years, to provide financing to transportation infrastructure projects across the nation.

"These projects will create up to two million new direct and indirect jobs per year and stimulate approximately $35 billion per year in new economic activity.

"The one area in particular that will benefit the most from the new national infrastructure reinvestment bank is the the industrial machinery and distribution equipment value chain.

"This sector has the potential income and employment multiplier effects to create the jobs Obama is promising as a result of this policy.

"Within that sector, we believe Ingersoll Rand has the best prospects for stock price appreciation. The company manufactures industrial equipment, turbines, precision bearings and flued control devices as well as construction equipment.

"The stock is rated an A stock by S & P for quality. Our target buy price on the stock is $37. The target aell price is $56."