'Power Play'

TXU, FLR, CAT, TEX, MDR, FWLT, ABB, IFS and SPW

"Right now, we have a fantastic bull market in infrastructure - especially energy infrastructure.

We don't have enough power plants, enough transmission equipment, not enough fuel, not enough transport to get the fuel to the plants.

I think this is going to be a long, sexy bull market, because I have an idea why it's happening and because it's long, you will be able to do a 'mon-back every time these stocks get hit, as they were today!

We have had decades of underinvestment in energy infrastructure in this country and in the world.  And now we can't produce enough power.

Yes, the sky-high price of crude is part of the energy problem.  That's not the bottleneck.  The real bottleneck is that we just don't have enough powerplants.

That's why we've got this energy infrastructure bull market.  But even the best bull markets need catalysts.

Last week, TXU, a really big texas utility co., came out and announced a giant plan to spend $10 million on 11 new coal plants.

The market expected txu to do some spending, but they weren't looking for anything this big!

When you get some serious capital spending, in a sector like energy infrastructure, that's already in bull mode, it's like Christmas came early.

Txu told you exactly where it's going.  They're using Fluor (FLR).  Man, that stock's been a rocket since the qtr.  And Bectel, unfortunately not public traded, as the primaries.

Should you buy FLR?  Great stock, but that's what everyone else will be doing.  So, at this level, don't buy - don't buy.

Sometimes it pays to be clever and go further down the food chain.  FLR and Bectel will both have to source the things that go into new plants to other cos

Cramer's not a big believer in trickle-down economics, but I am a believer in trickle-down stock picking.

The money rolls down from TXU to FLR, and then it goes from FLR to the sub contractors, who you need to think about buying.

You want an example of what I'm talking about?

For the construction machinery to build the plants, cat, down 5, or TEX!  Both are good.

CAT shouldn't be down 5.  It's just a bunch of guys ringing the register.

Then there's MDR and FWLT!  (FWLT just did a nice refinancing last night) both are in a position to catch some of the money, which is trickling down from TXU.  Both of these cos make plant equipment.

Want to get a more high tech?   A co. That reports later this week is ABB.  They do systems integration and automation stuff for power plants.

A little guy, IFS, a co. that makes the transmission and distribution equipment that hooks up the new power plants to the grid.

SPW, cooling towers.  Another potential  buy.

I'm not going to mention the name of the co. that makes electric generators and turbines - because I work for them (GE).

Bottom line!:  $10 million is trickling down from TXU to FLR, CAT, TEX, MDR, FWLT, ABB, IFS and SPW.  I think they are all buys if you do your homework."