EMCOR Group

EME-N

Small cap. Construction services. Reasonably priced at 15x earnings. 7% free cashflow yield. 95% of revenue comes from US. Nice option in the face of trade wars. Yield is 0.36%. (Analysts’ price target is $93.40)

In the mechanical/construction services business so they are very much part of the stimulus program. Only a third of stimulus money has been spent so 2010-2011 should be a good time for them. Trading at about 12X 2010 estimates. Very little debt. Have $10 a share in cash on the balance sheet. Have had 10 consecutive quarters of earnings surprises.