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:
