This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Top Stocks for Hurricane Season, Part 3

Nicholas Irion contributed to this article.

In the first and second installments of the quick-trade hurricane portfolio, we discussed which stocks might see increased revenues to help repair storm damage and get life back to normal. Today, I want to key in on names to avoid or short as a result of the ravages of Mother Nature.

And as I mentioned in the first two parts, the types of trades we're looking for in these stocks are short-term pops, or drops, off of news of a storm, not as longer-term fundamentals plays, unless otherwise stated.

The companies with the highest potential for losses have assets sitting in the Gulf of Mexico corridor. These are the companies to avoid as the reason is self-explanatory -- destruction or damage of their assets. For energy companies that are focused on refining, exploration or production, every hour they are offline (i.e. not pumping, drilling, or processing oil and gas), they are losing money.

Using previous storms as a template, here are companies that stand out to me for their potential negative exposure:

Exploration & Production companies: This group has the most potential exposure to damage from rough weather as the cash spigot of oil and gas is turned off. It is a very simple formula -- spigot off, no revenue and bad -- spigot on, gushing revenue and good. Think of the E&P companies as the opposite trade in oil services stocks mentioned in part two of the series.

On the big-cap front, watch Conoco Phillips (COP - Get Report), Devon Energy (DVN - Get Report), EOG Resources (EOG - Get Report) and Murphy Oil (MUR - Get Report).
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
ASCA $0.00 0.00%
BYD $20.13 -0.20%
COP $54.87 -0.81%
CWCO $11.86 -0.25%
DVN $46.11 -0.95%


Chart of I:DJI
DOW 17,846.80 +34.61 0.19%
S&P 500 2,089.93 +0.79 0.04%
NASDAQ 5,116.1660 +13.3580 0.26%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs