It’s all but certain that Hurricane Matthew will hit Florida in the coming day and will most likely brush its way across the eastern seaboard. It has been years since the US has been hit by a major hurricane. This looks to break the streak. Hurricane Matthew has prompted mass evacuations of portions of Florida and has already caused extensive damage in the Caribbean. The wrath of Matthew could be a boon for your portfolio. If you haven’t caught wind of companies that benefit from natural disasters, below you will find a handful that are worth your consideration.
A note of caution, if you do choose to follow such a strategy. Remember this type of investing is predicated on momentum. You’re looking for where everyone else is ‘running’. Just like hurricane Matthew, the momentum is going to eventually run out. At a certain point a normalization will occur and, if prices get inflated, by heightened fears of colossal disaster, the stock prices will break to the downside. You do not want to be around when this happens. Don’t be greedy. Get your profit and get out. No one speaks of how X storm allowed them to re-balance their portfolio for the next decade.
Lowe’s (LOW) – A home improvement/repair warehouse store. (Lowe’s has a larger share of stores in South Carolina, North Carolina and Virginia.)
Home Depot (HD) – Another home improvement/repair warehouse store. (Home Depot has a larger share of stores in Florida and Georgia)
Generac Holdings (GNRC) – If you think a lot of people might want to own a personal power generator at this moment of weakness, then you need to look no further than GNRC.
Matrix Service (MTRX) – When disaster strikes MTRX provides construction and maintenance services to oil, gas and the electrical infrastructure companies operating in the U.S.
Campbell Soup (CPB) – This might be not the most obvious stock, but people gearing up for a storm typically migrate to the purchase of canned foods. If distribution of food is going to stop for a period, large or small, canned food is the number one alternative. The bigger the region impacted from Matthew, the bigger the canned food purchases.