Tags: Bespoke | stocks | benefit | Sandy

Bespoke Investment Group: Stocks that Could Benefit from Sandy

Tuesday, 30 Oct 2012 08:34 AM

By Dan Weil

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Super-storm Sandy is a catastrophe for humans, but it might boost some stocks.

Briggs and Stratton (BGG), Generac (GNRC), The Home Depot (HD) and Lowe’s (LOW) are possible winners, according to Bespoke Investment Group.

Plenty of people in storm areas already have bought generators, and Generac and Briggs and Stratton make them. Generac offers a pure play on generators, while Briggs and Stratton also makes engines, lawnmowers and snow blowers.

Editor's Note: The ‘Unthinkable’ Could Happen — Wall Street Journal. Prepare for Meltdown

Home Depot and Lowe’s surely benefited from purchases of generators, batteries, plywood and other tools needed to prepare for Sandy and clean up after it.

Property and casualty insurance stocks also might be winners after the storm, according to Bespoke and others.

While that seems counterintuitive, as insurers have to make payouts after storms, most homeowner policies don't cover water damage caused by rising water.

In addition, storms give insurers an excuse to raise rates, Meyer Shields, an insurance analyst at Stifel, Nicolaus tells USA Today.

"Most of the time the stocks snap back [after initial declines] because it turns out to be not so bad, or it is bad enough so there is increased pricing power for the insurers," he says.

U.S. stock exchanges were closed Monday and will be shuttered again Tuesday, the first weather-related shutdown for consecutive days due to weather since 1888.

Editor's Note: The ‘Unthinkable’ Could Happen — Wall Street Journal. Prepare for Meltdown

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