The recovery may cost upwards of $50 billion. Whether you care to acknowledge it or not, housing is in full recovery mode, with values soaring nationwide (Phoenix +20%, Miami +8% yoy). Now with Sandy, people from the tri-state will need to rebuild, drawing from an already constrained building materials markets.
Sheetrock and insulation will be in high demand, helping shares of USG, OC and EXP.
Generator plays: GNRC, BGG
Rebuilding municipal infrastructure will help VMC, AZZ and WCC.
Specific to home owners, people will need to paint over new sheetrock, helping shares of VAL, SHW. CE makes chemicals that go into paint, and BLL makes the cans.
Heavy construction will be needed. Hence shares of HEES, CAT and CNH are higher.
You can’t build without wood. WY, LL, UFPI, BXC and LPX are your plays.
If Sandy ruined your deck, don’t worry–TREX will provide you with the materials for a new one–cheaper than real wood.
Need new kitchen cabinets? MAS is your play.
Top rated general contractors inside of The PPT are: EME, PIKE and PWR.
All of this new material will need to be trucked in. ODFL, LSTR, YRCW, MRTN, HTLD and ABFS are your plays.
You can’t build a new home without concrete, flooring and a roof. BECN, AWI, MLM, CRH, TXI and CX.
Nuts and bolts? FAST.
Are you interested in buying some power tools? MSM, SWK are your plays.
Too cheap to buy new tools? Don’t worry, URI has your back.
Is your car filled with water? See about KAR, SMP, GPC and TRW.
After that, appliances will be in demand, helping SHLD, WHR, LOW and HD.
BLDR offers a wide array of building supplies and CLH, ECOL cleans up hazardous materials.
In short, if you were a bull on housing before this tragic storm, you have to be foaming at the mouth now. Beware of quick traders and profit taking, which is typical after an event like this. And of course, one must be vigilant ahead of the elections. Should Obama be elected for a 2nd term, dollars to donuts this market is going down 10% in fairly short order.