Monday, November 10, 2008
China Stimulous Plan - $586B
By now I'm sure just about everybody has heard about the details of the stimulous plan out of China today. A lot of debate has taken place over whether its really new spending or mostly just a rehash of existing plans such as the earthquake rebuild. Regardless, the Chinesse economy is likely to benefit from these additional funds being spent. APWR is our favorite stock based on this news as any increase in demand in China will just further stress the power grid in mainland China requiring the services of APWR. APWR has been crushed due to its speculative appearance and the drop in the China markets, but it has a huge $800M backlog plus another potential $300M deal in the works. Not to mention, APWR is just now producing windmills that will provide for a substantial boost to the bottom line.
Looking for a stock that will indirectly benefit from this stimulous plana and you need look no further. Even the chart is starting to look more bullish.