Ways To Play Sandy

Sandy’s has caused the most horrible disaster in the 108 years history of New York where 80 homes were destroyed in single fire in the breezy part of queens according to Bloomberg. More than 40 people have died and over 6 million people are in dark with no power. According to US department of energy & power there are almost 65 % people in New Jersey with no power 31% in New York and no power as far as Maine and North Carolina has also been reported.

This kind of natural disaster usually brings interest in some specific stocks that tend to show up ticks in sales from storm related cleanup. So I want our readers to look at some specific sectors which can benefit with this recovery and cleanup related activities.

House Improvement
Housing stock which have been hit hard during the housing bubble will see strong sale improvement where people are gushing to pilling up their stocks to clean their houses and restore them to somehow to their original condition. Good play in this scenario will be housing ETF XHB. This etf has produced 46.42 % return YTD and 5.38% in October. Two major stocks in this EFT which will gain from this disaster are Home Depot and Lowe where property owners buy plywood, batteries, generators, and other tools to help prepare and cleanup the damage from the storm.

Lowe (LOW) last trading price was 31.36 and is up 4.34% in premarket trading at 32.72. Home Depot (HD) was closed at 60.04 and is up 3.88% trading at 62.37.

Power Generator
As power seems to be major problem so I will say that we will see better sales number in companies involved in power generator related business. Stocks like General Electric (GE) , Briggs and Strantton (BGG) and Generac will see rise in their power generator sales.

Friday's performance: Generac rallied 2.9% to $28.33, while Briggs rose 2.2% to $19.03

DISCLOSURE & DISCLAIMER: The Above Is For Informational Purposes Only And Not To Be Construed As Specific Trading Advice. Responsibility For Trade Decisions Is Solely With The Reader.