Bes Stocks To Buy 2014, Best Stocks For 2014: Four Small-Cap Stocks For the Obama Administration

Sunday, March 4, 2012

Four Small-Cap Stocks For the Obama Administration

You can think of Alternative Energy, Healthcare, Infrastructure and High Yield as sectors that should perform quite well under the Obama Administration.

Here�s a bit of food for thought on some Obama-flavored small-cap stocks:

The bulk of Obama�s $5.5 billion stimulus allocation will go toward installation of solar panels on Federal building roofs as well as to install high-tech energy meters and smart lighting systems that adjust to daylight.
Government agencies will be on a pretty tight schedule. The following timetable shows the specific percentages and deadlines they must meet to increase renewable sources:

� 3% or more in fiscal years 2007 through 2009
� 5% or more in fiscal years 2010 through2012
� ?7.5% or more by 2013

That�s a 150% increase in the percentage of energy sourced from renewable means, like solar, by 2013.� These companies stand to profit from a solar influx: Solarfun Power Holdings (Nasdaq: SOLF), JA Solar Holdings (Nasdaq: JASO), GT Solar International (Nasdaq: SOLR) and Evergreen Solar Inc. (Nasdaq: ESLR).?

Thoratic (NASDAQ: THOR), known for its ventricular assist devices (VADs) for patients suffering late-stage heart failure, recently bought Australia's HeartWare. Investors responded positively to this move because it brings new technology to Thoratec and expands the company's already significant market share.

THOR currently has 85% of the U.S. heart pump market and 65% of Europe's, and this new technology could ensure THOR stays on the top of this market for at least the next five to 10 years. The Thoratec-HeartWare partnership has the potential to grow into a multibillion-dollar business, which will translate to big sales and earnings growth.

Strong sales at its cardiovascular division drove revenue up 39% over last year to $89.6 million, and earnings rose to $5.6 million or 22 cents per share, compared with a net loss of $678,000 ! or one c ent per share in the first quarter of 2008.

MasTec (NYSE: MTZ) plays a vital role in literally supporting the backbone of the U.S. economy: infrastructure. For the last 75 years, MasTech as designed, built, installed, maintained and upgraded the telecommu�nications and utilities infrastructures of the U.S. This company has a hand in everything from telephone lines and high-speed Internet, to satellite and cable television services, to electric, water and natural gas utilities.

MasTec recently posted first-quarter earnings of $11.9 million or 16 cents per share, beating estimates by a penny. This 53% rise in quarterly profit was helped by a boost in revenue, which rose to $342.1 million due to the company's cost containment measures.

With ties to China and Taiwan - and a juicy 15.5% yield - I like the looks of Himax Technologies (NASDAQ: HIMX), a leading producer of semiconductors used in flat-panel displays found in computer monitors, laptops, mobile phones, digital cameras and car navigation devices.

These are still selling well worldwide, and will sell like hot cakes in countries like China and India with emerging middle-class consumers hungry for Western-style goods. Himax is a recognized category leader with a strong reputation, market share and huge growth potential.

Although Q1 net income fell to $4.4 million, or 2 cents a share, from $34.1 million, or 18 cents a share, a year earlier, the company forecast earnings of 7 cents to 9 cents a share on sequential revenue growth of 52 percent to 55 percent.

Analysts look for global flat-panel sales to grow 25-30% annually in the coming three to five years.

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