With the East Coast's recent snow storms in mind, I've already listed my five winter weather winners. Now here are my blizzard losers.
Again, note that the weather's impact will differ from industry to industry. Benefits to some of these companies could be short-lived and should not be extrapolated to longer periods of time. On the other hand, a drop in same-store sales by 1% or 2% could have a significant impact on earnings, which might be reflected in revisions to analysts' estimates. As always, do your homework to ascertain the impact, if any, to each stock.
Loser 1: Casual Dining Restaurants
Now for the losers, including the food chains that tend to attract families and other diners that want to sit down for a meal. (The casual dining chains also drive some of their traffic from malls, another bad-weather loser.) Likely restaurant victims of the snow storm include
Red Lobster and Olive Garden,
Loser 2: Apparel and Specialty Retailers
This entire sector is likely to get hurt by bad weather as shoppers stay away from malls, some of which shut down during the recent storms. This segment runs the gamut from big box retailers such as
to specialty apparel retailers such as
Abercrombie & Fitch
Note that the list of companies in this group is large, so check to see if your holdings fall within this category. I do see some possible exceptions. Retailers that have outdoor apparel, such as
, might actually benefit from the bad weather.
Loser 3: Airlines
As if the airline industry is not in trouble enough, a prolonged set of winter storms really throws some salt on the airlines' wounds. Airports up and down the East Coast were closed due to the recent storms, and flights across the entire country were subject to delays or cancellations.
were all affected by the storms.
Loser 4: Entertainment
If home entertainment was a winner, then theater entertainment suffered.
lost business at the box office, which also impacted the movie producers and distributors such as
. Of course, the latter two companies could also have benefited from a home-entertainment surge, mentioned above, potentially offsetting the drop in box office.
Loser 5: Hotels and Resorts
Many school districts are in the midst of or on the eve of February break. For many families, this means a trip somewhere warm, but some of those plans may have been scuttled as a result of the bad weather. A hard hit to Disney's theme park and hotel business would translated to a much larger loss than any box-office woes. Business travel also declines during stormy weather, hurting hoteliers such as
At the time of publication, Rothbort was long Verizon, Google and Ruby Tuesday, although positions can change at any time.
Scott Rothbort has over 25 years of experience in the financial services industry. He is the Founder and President of
, a registered investment advisor specializing in customized separate account management for high net worth individuals. In addition, he is the founder of
, an educational social networking site; and, publisher of
. Rothbort is also a Term Professor of Finance at Seton Hall University's Stillman School of Business, where he teaches courses in finance and economics. He is the Chief Market Strategist for The Stillman School of Business and the co-supervisor of the Center for Securities Trading and Analysis.
Mr. Rothbort is a regular contributor to
TheStreet.com's RealMoney Silver
website and has frequently appeared as a professional guest on
Fox Business Network
and local television. As an expert in the field of derivatives and exchange-traded funds (ETFs), he frequently speaks at industry conferences. He is an ETF advisory board member for the Information Management Network, a global organizer of institutional finance and investment conferences. In addition, he is widely quoted in interviews in the printed press and on the internet.
Mr. Rothbort founded LakeView Asset Management in 2002. Prior to that, since 1991, he worked at Merrill Lynch, where he held a wide variety of senior-level management positions, including Business Director for the Global Equity Derivative Department, Global Director for Equity Swaps Trading and Risk Management, and Director for secured funding and collateral management for the Global Capital Markets Group and Corporate Treasury. Prior to working at Merrill Lynch, within the financial services industry, he worked for County Nat West Securities and Morgan Stanley, where he had international assignments in Tokyo, Hong Kong and London. He began his career working at Price Waterhouse from 1982 to 1984.
Mr. Rothbort received an M.B.A., majoring in Finance and International Business from the Stern School of Business, New York University, in 1992, and a B.Sc. in Economics, majoring in Accounting, from the Wharton School of Business, University of Pennsylvania, in 1982. He is also a graduate of the prestigious Stuyvesant High School in New York City. Mr. Rothbort is married to Layni Horowitz Rothbort, a real estate attorney, and together they have five children.