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Showing posts with label Sandy. Show all posts
Showing posts with label Sandy. Show all posts

Hurricane Sandy Destroys - These 22 Stocks Benefit Most From The Monster Storm Of The Millenium

The hurricane Sandy is forecasted as one of the worst storms ever. Whatever will happen, the stock market will survive and business goes on. I researched some interesting companies that could earn some extra money due to the after-effects of the storm Sandy. We have classified our results in industries and introduced some of the major leaders. These are the results:


1. Home Improvement
People who lost their homes and mobiles need to repurchase these products. Companies within the home improvement industry should benefit from the hurricane. The major leaders are Home Depot (HD) and Lowe’s (LOW).

2. Dining Restaurants
Humans who have left their homes need to stay away from home at friends or near family members. For a few days, diner restaurants could make some extra profits from this. Starbucks (SBUX), Dunkin Brands (DNKN) and McDonalds (MCD) are basic investments but a bit too big and well diversified that the super storm should have a significant influence.

3. Travel Companies
If people leave their homes, they need to choose a provider if they don’t have an own car. Lodging stocks, auto rents, Airlines, railroads are main benefiters.

4. Insurer
Insurer should make a loss. If the damages are higher than expected, reinsurance companies should be the biggest losers. If the damages are lower than estimated, insurer could benefit, especially some players from the property and casualty insurance industry. Market leader are Berkshire Hathaway (BRK.A, BRK.B), American International (AIG), Travelers (TRV) or even Allstate (ALL). 

5. Consumer Goods
People need to buy extra storage of food, water and batteries. Companies like Procter&Gamble (PG) have a big relationship to the consumer battery industry (Duracell). Otherwise, the company should benefit from replacement buys of flooded goods.

6. Diversified Machinery
Some companies from the diversified machinery industry have products against flooding. Companies like Xylem (XYL) and PentAir (PNR) produce pumps used in dewatering, drainage and other applications.

7. Stores
Grocery and discount stores should benefit from hamster purchases. Wal-Mart (WMT), Family Dollar Stores (FDO), Target (TGT) or Costco Wholesale (COST) are basic investments.

8. Media Companies
People are sitting in front of their media devices like smart phones, radio, television etc. Facebook (FB), News Corp (NWSA), NY Times (NYT) or even CBS Corporation (CBS) should generate a higher attention.

9. General Building
Cement companies like Eagle Materials (EXP), homebuilder, raw material companies should have a special bull market. Companies like Beacon Roofing Supply (BECN) have a great market position.

Whatever will happen, nothing is so bad to make too fast decisions. But an overreaction could give investors a great opportunity for long-term investors. These are my personal favorites to watch: