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High Speed Rail

I have said it before, that Clusterstock produces some great articles, and they have produced one: here.

It concerns High-Speed Rail, currently a big issue here in California, and something that should be a big issue around the country as we struggle with the problems of transportation gridlock and our energy mix.

I’m bullish on rail infrastructure stocks, as there are many projects that are a go as soon as money becomes available. High Speed rail will need significant infrastructure investment in electricity generation (short-term: Natural Gas, longer term: Nuclear (Shaw Group (SHAW)), Solar (FSLR, TSL, STP)), electricity transfer, steel for the rails (NUE, X, AKS), concrete for the infrastructure (MDR, UDS). In addition, investment will flow to the traditional HSR manufacturers, like Bombardier and Siemens (SI), for carriages and design assistance. All we need is a government with some balls to declare eminent domain to get the land, and tell the conservative naysayers to get stuffed. Unfortunately that is what is lacking right now.

Disclosure: No positions in any of the stocks listed.

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