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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Don't Panic, Orange Juice Won't Be Squeezed

NEW YORK (TheStreet) -- The unusually severe cold temperatures experienced by the central and eastern U.S. in recent weeks are expected to have a chilling effect on economic activity for the quarter, so much so that a noticeable slowdown in GDP growth is possible.

The largest industries to take a hit are retailers and restaurants -- when would-be diners and shoppers stay warm at home, so do their dollars.

But while the damage caused by weather-related consumer skittishness is generally reversed as soon as temperatures normalize, one industry is threatened with irrecoverable losses when the cold strikes: citrus producers.

Because many varieties of oranges and lemons are harvested in the winter months in the U.S., an unseasonably cold winter can cause devastating losses for Florida and California citrus farmers, some of which pass down to juice producers, crop insurers and consumers.

We've had two significant freezes this season: a deep December freeze in California's Central Valley, and several freezing days in southern Florida where a large portion of the country's oranges are grown.

Impact on Producers

The largest public companies most directly positioned to suffer the brunt of the bad weather are Limoneira  (LMNR) in the Central Valley and Alico (ALCO) in southern Florida.

In the case of Alico, the worst of the possible damage was likely avoided because temperatures in Florida didn't fall deep below 28 degrees (the temperature at which substantial damage to citrus plants occurs) at the peak of the night-time freeze, and didn't stay there very long. While we aren't particularly bullish on Alico in general, we don't believe the winter weather is a catalyst to sell.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,979.13 +59.54 0.35%
S&P 500 1,986.51 +4.91 0.25%
NASDAQ 4,526.4820 -1.0320 -0.02%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs