Shaw Group Inc. (SGR)

[iam802]

Another counter that is in the construction, engineering, industrial services area.

Think this guy is going up in anticpation of Obama's plan for construction.

High volume breakout.

[winston]

THE INFRASTRUCTURE REBOUND IS GOING GREAT GUNS by Brian Hunt

It's been another big week for our "rebound trades."

In early December, we identified three assets that would soar when the inevitable market rebound showed up: Gold-mining stocks, emerging-market stocks, and infrastructure stocks. Since these assets suffered the most during the market crisis, our take was that they'd rebound the most when the crisis cleared. And rebounding they are. Take our infrastructure play, Shaw Group (SGR).

Yesterday, power-plant builder Shaw reported a small quarterly loss on an 11% increase in revenue. The report was a "things aren't great, but they aren't terrible" kind of thing. Since Shaw was sold to such a depressed level last fall, the "not terrible" news shot the stock up 22% on the day... and up an incredible 70% since we marked it for rebound.

The action in Shaw is a good sign for the infrastructure sector, but more importantly it's a timeless lesson for speculators. When folks get scared to death of an asset – whether it's land, oil, bonds, or stocks – they often sell it down so far that it gets "priced for Armageddon." When Armageddon doesn't arrive, and the clouds clear just a little bit, the asset can easily double or triple your money in just a few months.

[winston]

THE INFRASTRUCTURE TRADE IS STILL ON by Brian Hunt

Despite the stock market's big losses over the past few weeks, the infrastructure rebound trade is still on...

To recap, we introduced three "rebound trades" in early December: Go long emerging-market stocks, go long infrastructure stocks, and go long gold stocks. These three asset groups were among 2008's biggest losers... so they're likely to stage the biggest rebounds if the market rallies.

Emerging-market stocks are struggling right now, but gold stocks are soaring and – as today's chart shows – our infrastructure play is still doing well. Power-plant specialist Shaw Group is up 60% since our mention. And while the broad market has been clobbered in the past few weeks, Shaw remains near three-month highs.

Call it the "Obama effect" pushing up infrastructure shares, call it a simple "relief rally"... Either way, it's a bullish sign when an individual stock holds steady while most stocks are tanking. The infrastructure trade is still on...

[kennynah]

thanks 802 for highlighting this counter ... w, thanks for the updates...

somehow, for 2 weeks now.. the price got stuck at ~$27...which is the 23.8% retracement resistance...but at least...it has not tanked alongside the indexes...

got power, this one...i should keep a watchful eye on this... except it is not very very liquid (abt 3-4 mil transactions / day)

by the way...the day it broke out 8Jan09...it was earnings report day....

[winston]

OUR REBOUND TRADE IS SOARING... by Brian Hunt

Our infrastructure "rebound" trade is nearing double status.

In early December, we introduced the idea of buying infrastructure shares, gold shares, and emerging-market shares. These assets took terrible beatings in 2008... so they have tremendous potential to rise from such low levels.

The biggest winner of this group so far is power-plant specialist Shaw Group. The stock jumped 8% yesterday. It's up over 80% since our original write-up.

We're convinced Obama's proposed infrastructure projects will end up costing at least twice as much as their original estimates. Most Americans love the idea of a big public-works program... So a spigot of taxpayer money will be there for the spending. There will also be zero political will to demand projects come in on time and on budget. (For a preview of what's to come, consider Boston's historic Big Dig project, which cost over four times the original estimate.)

But hey... the bill for America's infrastructure spending won't come due for years. And the market is saying, "The infrastructure trade is on."

[iam802]

With the recent rally, SGR continues to trade within its $25 - $30 range.

The recent selldown has seen SGR prices holding well at above the $20; a level depicted by the kumo as well.

We can also see that the current kumo is sloping up; a suggestion that it is trending upwards

Tenkan sen and Kijun sen cross has also been sighted on 18 March with the price level above the kumo. This is good signal to suggest that SGR is poised for a long term uptrend.

[iam802]

I would have thought that counter like SGR will be a bullish play (assuming that they will benefit from infrastructure spending).

However, my charts doesn’t say so. Ichimoku has some bearish indicators on Shaw Group.

1. Tenkan sen cuts Kijun sen on June 24 and penetrated the kumo support.

2. We can also see the 50 day EMA and 200 day EMA is forming a resistant at above the current price level.

3. On the Weekly Chart, we can see that the kumo is also acting as a resistant.

4. Daily chart is showing that the leading kumo is twisting and trending downwards; a sign that it is a bearish play.

5. Support is sighted at around $26.50

[iam802]

Shaw adopting its name as stock ticker symbol

Change from SGR to SHAW

Effective date : August 21

http://www.2theadvocate.com/news/business/52890102.html