Smart Grid, Smart Move, Not-So-Smart Investment

All of this is great, of course. The national grid is archaic and in need of updating and smart-grid technology promises less reliance on foreign oil. But, as always, we want to know whether this influx of interest in infrastructure could offer us a good investment opportunity.

When it comes to smart meters, GE is one of the strongest players in the space. An investment in GE, though, cannot rely upon the growth potential of smart grids, as its finance arm, its aerospace and the NBC networks will have far more impact on the bottom line. IBM (IBM) is engaged in the computer systems that power many of the networks on which early smart grids have been running. But, again, there are far more important components to the balance sheet, which make investment in IBM based solely on energy networks unreasonable.

However, there are still a few plays on all this that interest me - Itron (ITRI) is a utility service provider and meter manufacturer carrying a super-high multiple, because it has been a continued source of takeover rumors. As the smart-grid talk gets hotter, you might see this stock move up, although at $60 dollars, it's pretty pricey already. ABB group (ABB) is a huge energy infrastructure company, in which smart-grid technology only plays a relatively minor role right now. Still, with a more down-to-earth multiple and a 2% dividend, it's a good stock to hold that might become great if the push for smart-grid technology continues to gain steam. It's just too early to tell.

The government's infrastructure investment and the upgrades to our antiquated system is a terrific story for our continued march towards better energy management and independence. It just doesn't make for a great investment story right now.

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