At GeoInvesting, we are in the business of information arbitrage. A lot of the time, we spend our time researching information that is public but also esoteric in nature and not widely disseminated. But other times, public information hands investors a set of conclusions that we think takes a while to resonate with the market.
For instance, seasonal businesses like ski resorts do poorly during warm winters — but often that sentiment doesn’t truly get priced in until the company has a chance to post its poor results. We think we’ve found a similar situation that could benefit a group of infrastructure companies.
House Transportation Bill Opens $300 Billion Wallet
The recent passing of a house transportation bill has led to us to seek out opportunities with companies that work in the roads and infrastructure space. This newly passed 1,300 page bill that was signed into law last week is supposed to provide “funding to fix dilapidated roads and crumbling infrastructure on which we’ve all grown accustomed to driving,” according to the above linked article.
This bill tells us that around $300 billion is going to be spent on transportation and related services over the next 5 years. Naturally, we want to know what publicly traded companies could benefit from such spending, and we believe we’ve identified a few good candidates.
It has been a few weeks since this passed, and the market is still trying to determine who will reap the benefits of this $300 billion. We think we have an idea.
The first challenge was getting the bill passed — the next challenge is being patient in waiting for the funds to be distributed.
As a result of this, we are tracking 3 stocks that could feel the positive effect of this bill, and we want to share them with you.
The first is SMITH-MIDLAND CORP (OOTC:SMID), a company that just posted a fantastic quarter. We have been following SMID since the stock it was trading under $3 and the company has recently traded near $3.50 per share, a price that we feel has significant upside. You can read our complimentary bullish write-up on SMID’s earnings here.
The other companies are ones that we are on the verge of discussing with our members. Please consider joining our community to get our latest coverage on stocks that have the most to gain from the passing of the transportation bill.