At this point, many of the hurricane plays have already been bought up. However, I am giving you a couple of plays that have not received much attention.
The key point is to be able to gauge the extent of the damage. Much of this speculation should be done before tomorrow’s close. By Monday morning, it may be too late.
If the Hurricane Irene comes ashore at a full category 3, or the track shifts westward so that more populated areas are subjected to the stronger side of the storm, the bought-up plays may have more upside. Conversely, should the storm weaken or the track shift to take it farther off-shore, most of the bought up names will make decent shorts.
Home Depot falls in the decent short category, should the storm weaken or the track shift eastward. Note it is right at resistance.
Lowes appears to have more available upside, should the storm stay strong and on its current projected path.
Beacon Roofing Supply has also been bought-up in anticipation of the storm. However, having lived through several hurricanes, including category 4 Hurricane Hugo in my hometown of Charleston, S.C., BECN probably has more upside if the storm is worse than expected.
Reddy Ice is the sleeper play of Hurricane Irene. You can thank me later. If you have ever experienced a significant hurricane, then you know that ice is as good as gold. It is also as hard to find, and people will line up like cattle at the trough when an 18 wheeler brings it in to town. Anyway, this company has a wide distribution range, which includes D.C.
I don’t have much experience trading the insurance companies. I suspect that Allstate may rally if the storm is not as severe as suspected.
On a very serious note, if you are living in the path of the storm and in the danger zone, go ahead and book a hotel room a couple hours west. Trust me, your family will think you are a hero when they have TV, air-conditioning, and restaurant food more so than if they watch you plug holes with tarps and then empty your deep freeze on the gas grill over the next week. Also, if you have a chain saw, don’t forget to get some gas and oil for it as well as a blade sharpener.
Richmond is in the path, but we are prepared. Stay tuned…
I believe you gotta ,ove west rather than east unless you have a big boat
lol…yes, thanks. Fixed.
Great ideas.
Thanks/
Why are more women not plumbers?
This is great. Thanks.
This is great. Thanks. …and yes, West better be the way we go…lol.
Nice post Wood.
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