Go!
Government spending can be controversial in the investing world, but sometimes it can create unrivaled opportunities for investors. For example, which of these companies has raked in a 56.5% revenue increase since 2006 and a whopping 364.5% increase in profit over the same period, thanks in part to the actions of the U.S. Government?

A.)  McDonald's (MCD)
B.)  Ford Motor Company (F)
C.)  Vestas Wind Systems (VWDRY)
D.)  The Medicines Company (MDCO)
E.)  MGM Mirage (MGM)

Published: May 18, 2009

The correct answer is      (C.) Vestas Wind Systems (VWDRY)

Although Vestas ranks second to GE in U.S. market share, it commands 19% of the global market. The company, based in Denmark, built its first wind turbine in 1979, marking the birth of the modern wind industry. Vestas is now the world's largest supplier of wind energy solutions and has installed more than 35,500 wind turbines in 63 countries. Vestas had 2008 revenues of 6.035 billion euros and net earnings of 511 million euros.

Vestas sits at the heart of Barack Obama's vision of a "green-collar" economy that attempts to accomplish two goals: Create jobs and decrease our reliance on oil. "To accelerate the creation of a clean-energy economy," Mr. Obama said, "we will double our capacity to generate alternative sources of energy like wind, solar, and biofuels over the next three years."

This offers significant opportunity for lots of alternative energy ventures, but the American Wind Energy Association, a trade group that maintains an excellent collection of alternative energy data, shows that the United States is already on its way to accomplishing Mr. Obama's goals. To boot, the U.S. Department of Energy's recent "20% Wind Energy by 2030" report says that reaching the goal is feasible and foresees 15% of U.S. electricity produced via wind power by 2020. This is phenomenal news for investors, as only 1.25% of U.S. power came from wind last year. That means we will need tens of thousands of megawatts of new projects -- and quickly.

Wind turbines are going to be selling like hotcakes for years, and the companies that make them are going to be raking in significant profits. In fact, wind's financial prospects are so bright that billionaire tycoon T. Boone Pickens (a lifelong oilman) has bold plans to spend $58 million of his own money on wind energy. All of this bodes well for wind-related stocks like Vestas. But the bigger lesson here is that investors can find ways to profit from the biggest financial force on the planet--the U.S. and other federal governments around the world.

That's why StreetAuthority editor Andy Obermueller has started the Government-Driven Investing newsletter, which helps investors capitalize on government actions around the world. To learn about Andy's other picks, and to learn more about Government-Driven Investing, please visit this link.

Want to answer more trivia questions? Visit our archives here!


 

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