as part of our
Bespoke Investment Group
With Hurricane Sandy setting its sights on one of the most
populated areas of the country, in what meteorologists are calling
a potential 'Frankenstorm,' there were a lot of nervous homeowners
watching the track of the storm this weekend. When this type
of storm approaches the United States, you typically see interest
in stocks that tend to see an uptick in sales from storm related
preparation or clean up. With that in mind, we wanted to
provide readers with some of the stocks that are frequently
associated with these types of events.
With an antiquated power grid throughout the northeast United
States, if Sandy does make her way up the coast, you can expect to
see widespread and extended power outages. Weatherman Joe
Bastardi has contended that the storm "…could knock out more
power than Irene and the pre-halloween snowstorm combined."
If that was the case you could expect to see an uptick in sales
of generators, and two companies that would stand to benefit are
Briggs and Stratton
). While BGG is a diversified company, producing lawnmowers,
snow blowers, and generators among other products, GNRC is more of
the pure play on generators.
Outside of generators, you also tend to see strong sales at home
improvement stores like
) as property owners buy plywood, batteries, generators, and other
tools to help prepare and cleanup the damage from the storm.
) has a potential to benefit as the retailer sells everything from
food and gas to power tools and generators, offering a one stop
show for storm prep.
Outside of these companies mentioned, insurance stocks tend to
be thought of as companies that are negatively impacted from major
storms. However, the reality is that more often than not
these stocks actually see strength as it gives the companies an
excuse to raise rates. Whatever happens this week with Sandy,
our biggest hope is that the bark of the storm's potential turns
out to be worse than its bite. Stay safe.
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