Obama Infrastructure Stocks

Last week President-elect Barack Obama proposed a massive infrastructure spending plan that might limit the current depth of the recession. The plan, which is expected to be dedicated to rebuilding roads, bridges, schools, electrical grids and dams, would be "sizeable, substantial, and sustained" in its length and scope.

While Obama refused to put a cost on the plan, senior Democrats are talking about $700 billion, and others are suggesting up to $1 trillion. Obama hinted that the plan could create upwards of 2 million new jobs.

So what's the trade?

The major construction and infrastructure companies, such as Fluor(FLR Quote), KBR(KBR Quote), Foster Wheeler(FWLT Quote), and Jacobs Engineering(JEC Quote), are all up substantially amid investor sentiment that these companies are the likely beneficiaries of Obama's infrastructure plan. While that is true, there is a whole other class of small and mid-sized infrastructure companies that could capitalize under this massive stimulus. ...