This column is for investors willing to take more risk and potentially receive more reward.  The stocks mentioned in this column are not recommended to buy or sell.  They're brought to your attention so you can investigate them further to determine if they fit your risk profile.  Most of the stocks will have less than $1 billion of market capitalization, have more volatility than other stocks, and oftentimes no earnings.  And some will have tremendous stories.

April 8, 2011 - MasTec, Inc. operates as a specialty contractor in the United States. It is in the building, installation, maintenance, and upgrade of utility and communications infrastructure. The company builds wind farms, solar farms, and underground and overhead distribution systems, such as trenches, conduits, cable, power lines, and pipelines, which provide wireless and wireline communications, electrical power generation and delivery, and natural gas, crude oil, and refined products transport.

The stock took a beating at the end of 2008, dipping to $5.60 a share. But then it recovered quickly. The company reported 97 cents a share in 2008, well above the 9 cents for 2007. But then earnings fell a little, to 90 cents in 2009. Last year, they moved up to $1.05. This year, 12 analysts have a consensus estimate of $1.24, then see 2012 at $1.50.

In those same years, revenues only went higher, going from $1.378 billion in 2008 to $1.623 billion to $2.308 billion respectively. This year, analysts believe totals will be $2.64 billion, then reaching $2.89 billion next year. These are excellent earnings and revenue growth during economic times that were very difficult for most other companies.

There are three main reasons for a bullish stance on MTZ: utilities should see an increase in electricity demand that translates into 34,000 miles of new transmission lines over the next 10 years. MTX is in the process of buying the remaining 66% of EC Source, a high voltage transmission line contractor, that it doesn't currenlty own by June or July of this year. EC Source would add $100 million in revenues and 5 cents a share in profits. Second, the Wireless infrastructure business is booming. In the fourth quarter, the division showed a 100% year over year improvement. Third: shale oil drilling will need large infrastructure projects to support it. This will be a great opportunity for the Pipeline group at MTZ.

Essential numbers: Price to sales is .74. Price to book is 2.61. Book Value is $8.35. Operating margin for the last 12 months was 8.02% and Profit margin was 3.92%. Return on equity was 15.30% and Return on assets was 7.61%. Total cash is $159.60 million for $2.04 a share. Current ratio is 1.48. Total debt is $412.55 million. Debt to Equity is 63.16%. Beta is 1.41. The stock is up 67.38% in the last year. The low was $9.26 and the high was $21.94. There are 78.26 million shares outstanding with a Float of 56.03 million. Insiders own 29.30%. Institutions have 69.3% of the Float. There is no dividend.

Investors love this stock. It's more than doubled in a year. Valuations are high when compared to historical norms. But the company is growing. New opportunities suggest the valuations are warranted, especially in light of demand in the wireless communications and infrastructure arenas represent. Aggressive investors should remember that earnings have been erratic in the past and while the future looks very bright, with the valuations reflecting high expectations, any shortfall in quarterly results will most likely result in a quick and painful pull back.