InvestingDaily.com

Account Information

  • My Account

    Manage all your subscriptions, update your address, email preferences and change your password.

  • Help Center

    Get answers to common service questions, ask the analyst or contact our customer service department.

  • My Stock Talk Profile

    Update your stock talk name and/or picture.



Close
FEATURED STRATEGY

$1,230 in Instant Income?

$1,230 in Instant Income?Our top income expert recently pulled the wraps off his breakthrough moneymaking technique. And he proved beyond a shadow of a doubt how you can use it to generate instant cash payouts of up to $1,230 (or more). Over and over again. But then he took things a big step further and guaranteed you can make $1 million by following his program. And the second he did, our phones went nuts! Space is limited — get the details here.

 

 

3 Stocks That Benefit When Disaster Strikes

By Benjamin Shepherd on May 17, 2017

Potential disasters lurk everywhere. Consider Campi Flegrei, a super volcano that lies west of Naples. Popular imagination is more familiar with mountain volcanoes such as Mount St. Helens, whereas Campi Flegrei is a “large caldera” type — a shallow but huge dip in the ground.

Scientists believe Campi Flegrei’s last eruption 39,000 years ago was a climate-changing event. Today, 360,000 people live in its vicinity and based on seismic and geological studies, scientists think it’s primed to blow again soon.

Disasters are an unavoidable part of the human condition, and cleaning up in their wake is big business.

Last year, between earthquakes, hurricanes and all the other calamities that can strike at a moment’s notice, natural disasters caused more than $175 billion in damage around the world. Last year was actually tame in terms of disaster-related costs. The 2011 earthquake and tsunami in Japan are estimated to have cost $300 billion, while the Deepwater Horizon cost roughly $100 billion alone.

Disaster response and remediation are moneymaking endeavors, even spurring the term “disaster capitalism.” That’s why it makes sense to have stakes in companies that make disaster-struck areas livable again.

Clean Harbors (NYSE: CLH) is a good case in point. Specializing in hazardous waste disposal, the company typically generates slow but steady growth in “good” years, getting rid of the nasty waste that is a byproduct of industry.

For example, revenue grew 8% year-over-year in the most recent quarter as demand for what are essentially routine oil cleanup services rose. After the Deepwater Horizon accident, though, revenue shot up from $1.07 billion in 2009 to $1.73 billion in 2010 as Clean Harbors played a big role in cleanup efforts.

Another company that does a steady business between disasters, then spikes when one strikes, is Generac Holdings (NYSE: GNRC). Generac makes a variety of engine-powered products, ranging from the portable lighting systems you see at construction sites to residential power washers. The company’s bread-and-butter products are generators.

Reaping sales from standby generators used for home backup power to large commercial units, the company has steadily grown its business as everyone from homeowners to supermarkets prepare for the worst. But sales really spike when disaster strikes, since electrical power is often one of the first services lost in an emergency and there are always plenty of folks who don’t have generators handy.

You also can’t go wrong with retailers like Home Depot (NYSE: HD). The home improvement store is thriving from the do-it-yourself boom. And besides, most consumers would rather not call an expensive plumber or electrician whenever a routine problem crops up. Another tailwind for Home Depot is the resurgence of the housing market.

Home Depot also has a history of being generous to its stockholders, returning about 25% of its market cap in dividends and share buybacks. The company’s shares really spike when a hurricane comes to town, as folks board up windows and start repairing the damages.

 


You might also enjoy…

 

R.I.P Bull Market—Here’s How To Protect Your Wealth

I hope you’ve enjoyed the phenomenal bull market of the past eight years…

Because it’s about to come to a screeching halt.

The Federal Reserve’s nearly decade-long spending spree has finally come to an end.

With no other options left at their disposal, the Fed has no other choice than to raise interest rates to keep inflation in check.

And that leaves you with two options…

Do nothing and suffer the agony of watching the profits you’ve accumulated over the years evaporate right before your eyes…

Or reposition your portfolio and invest in companies which prosper as inflation rises and interest rates soar.

I think the choice is clear. And I’ll show you the best new positions you can take if you click here.

Stock Talk — Post a comment Comment Guidelines

Our Stock Talk section is reserved for productive dialogue pertaining to the content and portfolio recommendations of this service. We reserve the right to remove any comments we feel do not benefit other readers. If you have a general investment comment not related to this article, please post to our Stock Talk page. If you have a personal question about your subscription or need technical help, please contact our customer service team. And if you have any success stories to share with our analysts, they’re always happy to hear them. Note that we may use your kind words in our promotional materials. Thank you.

You must be logged in to post to Stock Talk OR create an account.

Create a new Investing Daily account

  • - OR -

* Investing Daily will use any information you provide in a manner consistent with our Privacy Policy. Your email address is used for account verification and will remain private.