Top Stocks for Hurricane Season, Part 2
And let me repeat my statement from part one regarding the types of trades these are. We're looking for these stocks to have a short-term pop off of news of a storm, not as longer-term fundamentals plays, unless otherwise stated.
Any hurricane portfolio should strongly overweight the offshore plays.
Hornbeck Offshore Services (HOS): Drilling rigs and platforms are not self-sustaining, especially during hurricanes. HOS provides offshore support vessels to the industry, and its services and vessels are in high demand before and after any rough weather. The company has the youngest and second-largest OSV fleet in the Gulf of Mexico. It owns 35 new-generation vessels, plus 10 older conventional non-core vessels, with plans to growth the fleet to 65 by 2010. I like this one short and long term.Bristow Group (BRS): This is the "let's get out of Dodge" (before the storm hits) play. Bristow provides helicopter services to the offshore-energy industry. It owns and operates 548 helicopters, with another 25 on order. Energy companies use its services to both evacuate and bring employees back to oil platforms. It is an operating duopoly that controls two-thirds of the helo-transport market, along with CHC helicopter (privately-held). Oceaneering (OII): This company is the market leader in Remotely Operated Vehicles (ROVs), with 210 vehicles. These vehicles are unmanned machines that perform a variety of tasks in underwater areas that are too dangerous for humans, such as pipeline repair in the depths of the ocean after hurricane damage. I like to think of ROVs as a benevolent Arnold Schwarzenegger in Terminator that works to help repair damaged oil wells.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV