One of our special focuses this week is on engineering and construction. Within this space, we spoke to analyst Steven Fisher, who talk to us a little bit about the niche he looks at in this space: the Energy & Transportation Infrastructure space.
We asked him what effect issues to do with pollution and Greenhouse gases were going to have on companies in this space. Here’s what he had to say:
TWST: We’ve got greenhouse gas issues and pollution issues. Is that a plus or a minus longer term?
Mr. Fisher: I wouldn’t consider it a plus or a minus. It’s just one of many factors affecting project outlooks and it may just be creating shifts in the type of projects that move forward. There may be some companies that are better exposed. Take a company like Fluor (FLR). The things you mentioned primarily affect power markets. So if you were to say that CO2 emissions are going to make coal-fired power projects more challenged and it might create a shift to gas or wind or solar or nuclear, Fluor can do any of those different projects. For a company like Fluor, I wouldn’t consider it a plus or a minus; it’s just a shift in the type of project. But there are some companies that perhaps have a bit more exposure on the coal side currently, like Shaw Group (SGR) that it may affect more in the near term, but at the same time, they are probably one of the better exposed to the nuclear markets as those come on as a clean source of power.
For the full interview with Mr. Fisher, including a complete look at the outlook for this space and stock picks click here.
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