Macquarie: An Income Play In Infrastructure

We have a new recommendation based on another unexpected theme: bipartisan legislation. Our latest idea is Macquarie Infrastructure (MIC), suggests growth and income expert Mark Skousen, editor of High-Income Alert.

Based in New York City, Macquarie operates a portfolio of businesses, offering services to individuals, businesses and governments worldwide. Macquarie is the number one infrastructure manager and financier globally.

Macquarie Asset Management is one of the Top 50 global asset managers, offering wealth management services across multiple asset classes, with $397 billion in assets under management. The company also is a leading Australian vehicle financier, a global aircraft lessor and an award-winning digital bank.

It provides clients with access to financing, hedging and research and market analysis. It further is the number two physical gas marketer in North America and number one in completed mergers and acquisitions.

The company is superbly managed, with 49 years of unbroken profitability. Yet the stock is down a third from its 52-week high of $67.84 and trading for just eight times earnings while yielding a mouthwatering 10.4% for income investors.

That price is just too tempting for Macquarie President and CEO Christopher Frost. SEC filings reveal that he just bought 25,000 shares at $39.73, an investment of a million dollars.

Frost knows that just about the only thing Democrats and Republicans in Washington can agree on is the need to upgrade our nation’s aging infrastructure. Expect major bipartisan legislation on this issue to be signed into law not long after the next Congress convenes. And expect Macquarie to be one of the biggest beneficiaries.

This is an undervalued stock -- and a great play on coming federal infrastructure spending that may top $1 trillion. So, pick up Macquarie Infrastructure at market. And place a sell stop at $35 for protection. 

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