Granite Construction, Inc. (GVA)

With travelling, summer weather, and a none too clear picture of what Mr. Market is up to lately, I've been hard pressed to find any companies of serious (investable) interest of late. My Motley Fool subscriptions occasional bring some companies to my attention that I do additional analysis on, but overall, it's less than one in ten that I can get behind after a review. I seem to be more conservative than the teams with my valuations and limited investment funds. I made a play at Infrastructure stocks in January under the Obama enthusiasm for stimulus. Some have done well, but overall, it's clear the stimulus package is not getting doled out at the rate promised. The August Hidden Gems newsletter reminded me of Granite Construction. The 10% drop in the share price, shortly after adding it to my research list, helped it fit into my selection list. Hidden Gems reminder that construction money will be spent and that several companies are well positioned to receive it as well as highlighting that while dwindling, Granite has a decent pipeline to keep it busy until something breaks. The concern that states may not have infrastructure money of "thier own", or be able to issue bonds, (especially California) is offset by the condition of the nations infrasture and Granite's diversity with equipment, material sales, and actual work. Cash to debt is well in line, veteran leadership, diversified within the sector, stimulus projects that are funded, etc. Management does warn that bidding, especially in the Western division will be very competitive, but believes they will do better than usual with Granite East. Though margins are a little lower than I would like, I believe Granite is priced well within an acceptable risk/reward level.