Shares of companies like Itron (Nasdaq: ITRI) and Echelon (Nasdaq: Elon) rose last week, following the unveiling of President-elect Barack Obama’s economic stimulus plan, which includes billions for upgrading the nation’s electrical grid and improving the efficiency of public buildings and private homes.
However, analysts believe these companies and others like Honeyweill (NYSE: HON), Emerson Electric (NYSE: EMR) and Cree (NasdaqGS: CREE), which stand to benefit from investments in efficiency, won’t see an "Obama boost" until 2010.
Furthermore, big government orders will likely be offset by sharp drops in demand to be seen in the current year.
"These are big infrastructure changes that require a lot of manpower, a lot of money and time to roll them out," said Heather Daniell, energy efficiency analyst with New Energy Finance. "It is going to take quite a long time to see some kind of effect."
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