Market Mad House

In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. Friedrich Nietzsche

Crazy Stocks

A Low-Cost Hyperloop Stock: AECOM

There is a way an average person can invest in Hyperloop without putting hard-earned money into risky propositions like the crowd-funded Hyperloop Transportation Technologies.

You can buy stock in AECOM (NYSE: ACM) the American engineering, construction and design firm. AECOM built the pod test track at Elon Musk’s SpaceX headquarters in Hawthorne, California, and is involved in Hyperloop One’s  test track in North Las Vegas, Nevada.

That gives it real world experience in Hyperloop construction and its real company with real stock that’s trade on the New York Stock Exchange. More importantly AECOM actually makes real money it reported a net income of $163.66 million and a free cash flow of $53.92 million on December 31, 2016.

Its investors also received a return on equity on the same day but no dividend. More importantly they can check the financial reports at websites like ycharts and see that AECOM had revenues of $17.47 billion and assets of $13.51 billion at the end of fourth quarter 2016. You can even see that AECOM reported generating $813.16 million in cash from operations and stashing $697.72 million in cash and short-term investments during fourth quarter.

A Safe Hyperloop Investment

That’s certainly a lot smarter than putting money into a privately held unicorn (pre-IPO startup) like Hyperloop One or a venture like Hyperloop Transportation Technologies (HTT). Those who invest time and money in HTT get a warrant a promise of future stock if the company ever issues it.

Neither of those sounds like a good investment for a person, especially an individual with a family and a mortgage to worry about. Let wealthy celebrities put their money into questionable unicorns they probably need the tax writes off anyway.

On the other hand AECOM is a safe investment, a very boring stock in a very boring company. Yet it’s a company that’s involved in one of the most exciting transportation developments in today’s world Hyperloop.

AECOM’s Transportation Experience could be Key to Hyperloop’s Success

It is easy to see why Musk and Hyperloop One tapped AECOM to engineer, design and build its systems. The company has a vast amount of experience in transportation projects similar to the Hyperloop.

For example it worked on the Goonyella to Abbot Point Expansion Project for Queensland Rail in order to extend a freight railroad. It also headed up the remodeling of Denver’s Union Station from an old railroad station to a modern transportation Hub and dining and entertainment center.

Denver Union Station could serve as the model for redeveloping historic rail hubs into Hyperloop stations. The Union Station project combines light rail, an underground bus terminal, commuter rail and Amtrak trains. Such integrated transportation solutions would make a good model for Hyperloop hubs in city centers.

AECOM in London Serves a Model for Hyperloop

Another project that would serve as a role model for Hyperloop facilities is the Bank Street underground station upgrade in London. That’s another historic facility converted into a modern transportation solution with AECOM’s help. AECOM also has had experience with many transit projects including Minneapolis’s Green Line Light Rail.


Another AECOM project in London that might serve as a model for Hyperloop is the Crossrail project in London. Crossrail is a 62 mile project that will connect Maidenhead and Healthrow Airport with Shenfield and Abbey Wood. It includes 13 mile long twin bore tunnel connected to the existing underground system that would be a good model for Hyperloop.

Why Tunnels are the Key to Hyperloop’s Success

Such tunnels would be a perfect means of putting Hyperloop lines across crowded cities such as London, New York, Los Angeles and Beijing. Crossraill will include 38 stations, and involved eight tunnel machines.

This kind of experience makes AECOM well positioned to take cash in on Hyperloop building projects. In particular it has the tunneling expertise which would be vital for bringing Hyperloop to cities like New York and areas like Central Colorado. For example a Hyperloop line following the course of the Roberts Water Tunnel and Highway 285 would form a faster and more direct connection between Denver and Summit County than I-70. Summit County is the home of such ski resorts as Keystone and Breckenridge.

Giant tunneling machine used on Crossrail.

Unlike a free way or a traditional rail line a Hyperloop could be built in something like the Roberts Water Tunnel. That would allow it to pass through wilderness areas without disturbing wildlife or the environment or devastating small towns the way that highways do.

Expertise like that in tunnel is what makes AECOM an almost perfect Hyperloop investment. No matter who builds the Hyperloop, somebody will have to engineer and design it and there’s a good chance it will be AECOM. Putting this stock in your portfolio may help you cash in on the Hyperloop Future.