In early April 2017, several cities went dark.
In San Francisco, more than 90,000 residents lost power due to “equipment failure, the catastrophic failure of a circuit breaker,” explained Pacific Gas & Electric.
In New York, a power outage in Brooklyn brought several subway lines to a halt when a Con Edison equipment failure knocked out signals, escalators, communications systems, and lights.
Over the last year, more than 3,570 power outages were reported. That’s nothing new, and things could get worse as the American Society of Civil Engineers rates our nation’s energy infrastructure with a D+.
Think about this. Much of the U.S. energy infrastructure in place now was built in the 1950s and 1960s with a life expectancy of 50 years.
Worse, more than 640,000 miles of high voltage power lines are at full capacity, according to the American Society of Civil Engineers (ASCE).
And without billions, even trillions of new investment, capacity bottlenecks and increased demand will put incredible strain on the existing power systems.
Before long, we could all be in the dark.
The outages in New York and California highlight the need for updating and replacing the power grid.
And stocks like Goldfield Corporation (GV) could be a goldmine opportunity. Goldfield is a provider of electrical construction and maintenance services throughout the United States. It can’t help but benefit from upgrades to our ailing energy infrastructure system.
In fact, it’s part of the reason The Cheap Investor recommended the stock at $1.31 a share in the February 2016 issue. The stock ran as high as $8.50 a share.
That’s a potential gain of 549%, by the way.
However, Goldfield Corporation is not the only small-cap opportunity out there. The Cheap Investor has an eye on several more for the next few issues. Stay tuned.