“Since most people expect this recession to be deeper and longer than the last one, survivors want to be sure that they learned the lessons of the tech crash.
“MasTec (MTZ) certainly intends to do better this time around. About three-quarters of its business comes from installing telecom infrastructure. So after its client base went south in 2001, MasTec endured four straight years of shrinking revenue and red ink along with a federal probe into its accounting practices.
“Austin Shanfelter, who was promoted to chief executive shortly after the downturn started, made some drastic changes to turn the company around. Those included cutting head count by 35% and selling off some of the many buyouts and side businesses MasTec had taken on during the boom years.”
What really impresses me is that MasTec is in a great position to benefit from the economic stimulus package:
“Meanwhile, in Washington, the new government’s agenda seems almost designed with MasTec in mind. Green energy is in, as is upgrading the electrical grid and bringing wireless and broadband service to rural areas. The civil engineering plans may also boost MasTec’s now-small business in water-system and bridge building.
“Probably more (through) luck than vision, we’ve really positioned ourselves in most of the areas being talked about in the stimulus package,” Mas said.”
In Emerging Growth, I rate MasTec a Strong Buy up to $14.