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  • Hurricane Sandy Destroys - These 22 Stocks Benefit Most From The Monster Storm Of The Millenium  2 comments
    Oct 29, 2012 4:14 PM | about stocks: AIG, ALL, BECN, CBS, COST, EXP, FB, FDO, HD, LOW, NWSA, NYT, PNR, TGT, TRV, WMT, XYL

    The hurricane Sandy is forecasted as one of the worst storms ever. Whatever will happen, the stock market will survive and business goes on. I researched some interesting companies that could earn some extra money due to the after-effects of the storm Sandy. We have classified our results in industries and introduced some of the major leaders. These are the results:


    1. Home Improvement

    People who lost their homes and mobiles need to repurchase these products. Companies within the home improvement industry should benefit from the hurricane. The major leaders are Home Depot (HD) and Lowe's (LOW).

    2. Dining Restaurants

    Humans who have left their homes need to stay away from home at friends or near family members. For a few days, diner restaurants could make some extra profits from this. Starbucks (SBUX), Dunkin Brands (DNKN) and McDonalds (MCD) are basic investments but a bit too big and well diversified that the super storm should have a significant influence.

    3. Travel Companies

    If people leave their homes, they need to choose a provider if they don't have an own car. Lodging stocks, auto rents, Airlines, railroads are main benefiters.

    4. Insurer

    Insurer should make a loss. If the damages are higher than expected, reinsurance companies should be the biggest losers. If the damages are lower than estimated, insurer could benefit, especially some players from the property and casualty insurance industry. Market leader are Berkshire Hathaway (BRK.A, BRK.B), American International (AIG), Travelers (TRV) or even Allstate (ALL).

    5. Consumer Goods

    People need to buy extra storage of food, water and batteries. Companies like Procter&Gamble (PG) have a big relationship to the consumer battery industry (Duracell). Otherwise, the company should benefit from replacement buys of flooded goods.

    6. Diversified Machinery

    Some companies from the diversified machinery industry have products against flooding. Companies like Xylem (XYL) and PentAir (PNR) produce pumps used in dewatering, drainage and other applications.

    7. Stores

    Grocery and discount stores should benefit from hamster purchases. Wal-Mart (WMT), Family Dollar Stores (FDO), Target (TGT) or Costco Wholesale (COST) are basic investments.

    8. Media Companies

    People are sitting in front of their media devices like smart phones, radio, television etc. Facebook (FB), News Corp (NWSA), NY Times (NYT) or even CBS Corporation (CBS) should generate a higher attention.

    9. General Building

    Cement companies like Eagle Materials (EXP), homebuilder, raw material companies should have a special bull market. Companies like Beacon Roofing Supply (BECN) have a great market position.

    Whatever will happen, nothing is so bad to make too fast decisions. But an overreaction could give investors a great opportunity for long-term investors. These are my personal favorites to watch:

    Pentair (PNR) has a market capitalization of $4.08 billion. The company generates revenue of $3.46 billion and has a net income of $38.52 million. The firm's EBITDA amounts to $276.65 million. The EBITDA margin is 8.00% (operating margin 4.88% and net profit margin 1.11%).

    The total debt represents 28.54% of the company's assets and the total debt in relation to the equity amounts to 67.71%. Last fiscal year, a return on equity of 1.70% was realized. Twelve trailing months earnings per share reached a value of $0.46. Last fiscal year, the company paid $0.80 in form of dividends to shareholders.

    Here are the price ratios of the company: The P/E ratio is 88.46, Price/Sales 2.49 and Price/Book ratio 2.10. Dividend Yield: 2.14%. The beta ratio is 1.11.

    Lowe's Companies (LOW) has a market capitalization of $35.77 billion. The company generates revenue of $50.21 billion and has a net income of $1.84 billion. The firm's EBITDA amounts to $4.76 billion. The EBITDA margin is 9.47% (operating margin 5.79% and net profit margin 3.66%).

    The total debt represents 22.73% of the company's assets and the total debt in relation to the equity amounts to 46.13%. Last fiscal year, a return on equity of 10.53% was realized. Twelve trailing months earnings per share reached a value of $1.51. Last fiscal year, the company paid $0.53 in form of dividends to shareholders.

    Here are the price ratios of the company: The P/E ratio is 20.77, Price/Sales 0.71 and Price/Book ratio 2.35. Dividend Yield: 2.04%. The beta ratio is 1.06.

    Home Depot (HD) has a market capitalization of $90.51 billion. The company generates revenue of $70.40 billion and has a net income of $3.88 billion. The firm's EBITDA amounts to $8.23 billion. The EBITDA margin is 11.70% (operating margin 9.46% and net profit margin 5.52%).

    The total debt represents 26.63% of the company's assets and the total debt in relation to the equity amounts to 60.27%. Last fiscal year, a return on equity of 21.11% was realized. Twelve trailing months earnings per share reached a value of $2.80. Last fiscal year, the company paid $1.04 in form of dividends to shareholders.

    Here are the price ratios of the company: The P/E ratio is 21.47, Price/Sales 1.29 and Price/Book ratio 5.16. Dividend Yield: 1.93%. The beta ratio is 0.84.

    Eagle Materials (EXP) has a market capitalization of $2.19 billion. The company generates revenue of $495.02 million and has a net income of $18.73 million. The firm's EBITDA amounts to $68.68 million. The EBITDA margin is 13.88% (operating margin 6.27% and net profit margin 3.78%).

    The total debt represents 27.10% of the company's assets and the total debt in relation to the equity amounts to 56.49%. Last fiscal year, a return on equity of 4.01% was realized. Twelve trailing months earnings per share reached a value of $0.71. Last fiscal year, the company paid $0.40 in form of dividends to shareholders.

    Here are the price ratios of the company: The P/E ratio is 67.63, Price/Sales 4.72 and Price/Book ratio 4.62. Dividend Yield: 0.83%. The beta ratio is 1.31.

    Xylem (XYL) has a market capitalization of $4.38 billion. The company generates revenue of $3.80 billion and has a net income of $279.00 million. The firm's EBITDA amounts to $519.00 million. The EBITDA margin is 13.65% (operating margin 10.39% and net profit margin 7.34%).

    The total debt represents 27.45% of the company's assets and the total debt in relation to the equity amounts to 66.01%. Last fiscal year, a return on equity of 12.27% was realized. Twelve trailing months earnings per share reached a value of $1.51. Last fiscal year, the company paid $0.10 in form of dividends to shareholders.

    Here are the price ratios of the company: The P/E ratio is 15.60, Price/Sales 1.15 and Price/Book ratio 2.38. Dividend Yield: none. The beta ratio is not calculable.

    Beacon Roofing Supply (BECN) has a market capitalization of $1.46 billion. The company generates revenue of $1.82 billion and has a net income of $59.22 million. The firm's EBITDA amounts to $128.80 million. The EBITDA margin is 7.09% (operating margin 5.71% and net profit margin 3.26%).

    The total debt represents 28.27% of the company's assets and the total debt in relation to the equity amounts to 60.75%. Last fiscal year, a return on equity of 11.76% was realized. Twelve trailing months earnings per share reached a value of $1.67. Last fiscal year, the company paid no dividends to shareholders.

    Here are the price ratios of the company: The P/E ratio is 18.55, Price/Sales 0.80 and Price/Book ratio 2.66. Dividend Yield: none. The beta ratio is 1.15.

    Stocks: AIG, ALL, BECN, CBS, COST, EXP, FB, FDO, HD, LOW, NWSA, NYT, PNR, TGT, TRV, WMT, XYL
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Comments (2)
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  • divtrader
    , contributor
    Comments (4) | Send Message
     
    What about Hubbell or General Cable? These companies both supply to utility companies. I'm thinking there will be a lot of replacement of electrical infrastructure in the coming months.
    31 Oct 2012, 12:55 AM Reply Like
  • Dividend Sheet
    , contributor
    Comments (319) | Send Message
     
    Author’s reply » There are much more companies to observe. As we have seen, the damages are much lower as expected for the time beeing. Around USD 20 bn.
    31 Oct 2012, 06:16 AM Reply Like
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