Hurricane Talk

While I finish preparing for tropical storm Hanna, I thought it might be interesting to start a discussion about hurricanes and investing. I remember after Hurricane Katrina there were some good investment opportunities, but there were also some companies that were permanently damaged. Let's think about some of impacts that hurricanes have on businesses and how they play out on long term stock investment opportunities.

  • Which companies are most impacted initially by hurricanes?
  • Which companies bounce back quickly?
  • When are companies permanently impaired by storms?
  • What stocks are over reacting to the news of hurricanes?
  • Which situations provide value opportunities? Which ones don't?

 

 

George on Sat, 2008-09-06 17:21

It looks like hurricane Hanna has past here. We got a lot of rain, but winds were moderate.

The only clear beneficiaries here were Home Depot and Loew's for the prep and cleanup supplies.

George on Fri, 2008-09-12 22:15

Galveston is experiencing major flooding. There definitely will be national repercussions as a result of this storm and its impact on the United States refining capacity. Our prayers should also go out to those that did not take heed of the government warnings to evaculate the storm areas. The situation looks very dangerous.

Dividend Growth... on Sat, 2008-09-13 20:28
Title: WMT

Seems to me that WMT should also be a beneficiary during hurricanes in addition to LOW and HD.

StockInvestor on Wed, 2008-09-17 11:41

Now that Ike has blown through, let's hope the worst is over. That part of the country has really taken a beating. I have some friends near Galveston that were lucky, but they know many who were not so fortunate.

As far as companies that are impacted, I agree that WMT, LOW and HD are sure to get a boost. The home building industry in general will benefit, too bad it's only a regional shot in the arm.

Happy Trading,
~Jim
HighGrowthStock.com - Stock Trading Software

George on Wed, 2008-09-17 22:07

I too hope that hurricane season is winding down. However, I think we still have over a month before we are out of the danger zone.