This link has been bookmarked by 1 people . It was first bookmarked on 12 Oct 2008, by Michael.
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12 Oct 08
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To date, the Obama camp has promised more taxes on the rich, windfall profit taxes on oil companies, higher corporate taxes, higher payroll taxes, national health care and energy independence in 10 years.
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One of the first things we will see is a movement away from full-time employees to more flexible temporary staffing. As employment costs and corporate taxes increase, you will actually see more reliance on outside consultants. Professional services firms like Accenture (ACN) - trading at $38.92 - should do very well.
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If U.S. corporate tax rates do in fact go higher, watch for some big moves out of some Irish stocks as U.S. companies start moving to Ireland. One in particular to put on your radar is ICON (ICLR)
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Everything from power generation to power delivery will have to be revamped. There will be some obvious companies that will benefit from this spending spree.
Energy Conversion Devices (ENER) - trading at $55.27 - makes thin-film solar cell products, nickel metal hydride batteries, and phase-change memory devices. While the stock has been roughed up of late, an Obama win could have this one in the stratosphere.
Another player in the alternative energy space that has been flying under-the-radar is LDK Solar (LDK) - trading at $40.76 . The company turns polysilicon into multicrystalline wafers, which are used in the construction of solar cells and solar modules. The company uses recycled materials in its production process and two -thirds of its business currently comes from Asia. With an Obama win, LDK stands to dramatically increase its U.S. business.
Good old General Electric (GE) - trading at $28.81 - could also be a big beneficiary of expanded alternative energy spending. Its going to take a lot of GE wind turbines and a massive infrastructure build out to make wind work and GE has the background and know-how when it comes to monster-sized projects.
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