Stocks That Will Rock You Like a Hurricane

Stockpickr Staff

Stockpickr member arnabdgp notes in his 2007 Hurricane Season Index that the National Hurricane Center has warned that the 2007 season will be more active than normal. In April, William Gray, a top hurricane forecaster based at Colorado State University, predicted a "very active" season this year with at least nine hurricanes -- five of them major hurricanes -- and a good chance that one major hurricane will hit the U.S. coast.

With the heart of the hurricane season upon us, now is a good time to check out stocks that could benefit from stormy weather. These companies provide support services to offshore rigs that might get damaged from the path of a hurricane and need to be transported for repair.

The 2007 Hurricane Season Index identifies stocks that not only benefit the most when there is a hurricane but also have other factors (low P/E , high dividends , buybacks, insider buying, etc) to support the case that they are buys right now, even without a disastrous hurricane season.

For instance, on his list is Trico Marine Services (TRMA), which provides marine support vessels to support the oil and gas fields in Mexico and Brazil, particularly the Gulf of Mexico. It transports drilling materials, supplies, and crews, and, most important for us, it offers repair services after a hurricane.

It have a P/E ratio of 10.6, an operating margin of 37%, and Stevie Cohen from SAC Capital is one of its largest shareholders with a 5.9% stake in the company. For the rest of SAC Capital's top holdings, check out the SAC Portfolio on Stockpickr.

Oceaneering International (OII) is another stock on the Hurricane Index that also appears in a different portfolio of hurricane-related stocks, this time the Hurricane Portfolio. Oceaneering provides underwater repair services that are useful to repair offshore drilling operations in the Gulf after a hurricane.

Other stocks in the Hurricane Portfolio include Superior Offshore (DEEP) and Thor Industries (THO). The Hurricane Portfolio also tracks stocks on the hated list that will be most hurt by a hurricane, including stocks like RenaissanceRe (RNR) and Montpelier Re (MRH), two insurance companies with the most exposure to hurricane areas.

For the full list of stocks that can potentially be affected by these disasters, check out the Hurricane Portfolio and the 2007 Hurricane Index.

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