How a chilling new report from the White House just triggered an investor alert for these two top stocks…
Let’s get straight to the facts.
In the past decade, power failures in the US cost the economy an average of $18 billion to $33 billion each year, according to a recent report by the White House and the Department of Energy.
Between 2003 and 2012, there were 679 different outages that affected 50,000 utility customers or more.
The White House states that severe weather is to blame for the majority of these blackouts. They believe that climate change is partly to blame, and that major weather-related events are only going to get worse.
Case-in-point, since 2004 the US experienced 7 of the 10 costliest storms on record. Last year alone, there were 11 weather-related disasters that cost more than $1 billion each.
With costs and safety concerns increasing, the government is desperately urging power companies and utilities to ‘shield’ America’s electrical grid from future disruptions and catastrophes.
In other words, power companies are being urged to invest heavily in grid modernization and resilience – to potentially save the country from billions of dollars in losses annually.
The government has already kick started the plan. Under the Recovery Act, the U.S. has allocated $4.5 billion for investments in smart grid technologies.
But this is only the beginning of what could be a sweeping upgrade in our nation’s power grid.
And folks, it’s not just us utility users that benefits. This also presents an interesting opportunity for investors to profit as billions of dollars begin pouring in…
How To Profit From Power Failures
Since hitting bottom in 2009, the Dow Jones US Utilities Index (DJU) has climbed its way back to pre-recession levels.
And although utilities have been enjoying a nice rally, I believe there are even better opportunities to be found from their suppliers — and no, I’m not referring to gas or coal.
The government’s report indicated that utilities should install technologies that can better prevent extreme weather from overwhelming the grid and improve power reliability.
Specifically, the White House called for companies to begin implementing smart meters and energy-storage devices.
Deploying smart metering systems can quickly identify the location of outages and isolate the affected areas without impacting the entire grid.
Likewise, energy-storage devices and large-scale battery systems can help provide backup power in the event that a blackout does occur.
If utilities take heed in the government’s words, then the following would be two of the top stocks to buy as they stand to profit from as orders for these solutions start to pour in.
Top Stocks to Buy Now:
Top Stock #1: Itron Inc. (NASDAQ:ITRI)
Itron is a global provider of technology solutions for utilities. It develops a variety of products to manage, measure and analyze energy, gas and water systems.
The Company holds a 19% share of the global meter-shipment market, with Germany’s Elster and Switzerland’s Landis+Gyr tied in second with 10% each.
In North America, it’s the undisputed leader with nearly 40% of the market share for supplying to electrical companies.
Since January, Itron has been awarded contracts to install advanced metering infrastructure (AMI) solutions for a number of utility companies, including Pennsylvania’s Duquesne Light, Indiana’s NIPSCO, and City of San Diego.
With the release of the White House report, there will certainly be more tenders from utilities in the months ahead. So expect Itron to be in position to submit and win a number of contracts.
Currently trading near its 52-week low with a forward P/E ratio of just 11, this is an incredible opportunity to snap up shares of Itron on the cheap.
Top Stock #2: American Vanadium Corp. (TSX:AVC)
AVC is a junior mining company that’s developing the only vanadium deposit in the US.
Vanadium is an element typically incorporated to strengthen steel, but is now being used in energy storage technologies and high performance batteries.
While AVC continues to develop its Gibellini Mine, the Company has also entered into an agreement with Germany’s Gildemeister AG to be the exclusive seller of Gildemeister’s CellCube solution in North America.
CellCube is a vanadium redox flow battery (VFB) storage system that’s capable of deep-cycling an unlimited number of times during its 20-year life span and can be applied in a variety of situations, including back-up power, off-grid, and renewable energy storage.
Though it’s a technology still in its infancy, global vanadium demand is projected to more than double by 2025, which should bode well for American Vanadium Corp.
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