Investing in Current Affairs

Investing in current affairs – Floods!

With tides peaking and rivers bursting their banks and generally a lot of extreme weather in the UK at the moment this article considers if there are any winners in this situation?

Investing in Current Affairs? It is always worth considering the affect of the latest hot topic on your investments – current affairs can cost or alternatively make you a lot of money!

I have considered 3 main Categories of Company that may be affected

  1. Insurance Companies -uh oh! This must be a hard time for them with all the claims coming in – the Government has said that they will support them so lets see how that pans out…   https://www.gov.uk/government/news/flood-insurance-agreement-reached
  2. Companies that are responsible for Civil Engineering and Infrastructure improvements – With pledges for further spending on Infrastructure and Flood defenses it may be worth investing some time in identifying some boring old Engineering companies probably Civil and Mechanical will be the main beneficiaries.
  3. Companies that will see a uplift in sales or service provision as a result of repair work to damaged homes and other buildings see a few examples below:

Carpetright – CPR

Could this struggling Carpet retailer see an uplift in UK sales as  a result of carpet replacement by all the poor people who have had to evacuate their homes? Shares in Carpetright have soared to 585p from the 500p we seen in January so the market seems to think so!  I would play this one with caution, although there may be a bit more upside to come if the bad weather continues the improved sales will only be in the UK branches and they are still struggling in other regions.  I would be tempted to watch this one as a potential short as I don’t feel the sales gain will be enough to put them on a significantly stronger footing.

Flooded B&Q

 

B&Q – Kingfisher KGF

Another share which has rallied a bit on the extreme weather news they are bound to see increased footfall and sales once they get the floods cleared from their stores!  They sell Dehumidifiers amonst other things which will be in demand.

Topps Tiles – TPT

These guys have seen a strong rally of late and I think we should see some continued upside as a result – I need to consider how much of the upside is already in the price now at around 148p with forecast profits of 20 million.  Their debts have been falling (35million debt down from 45million) so maybe a boost from Flood repair sales may keep results to top end of expectations.

That is all that comes to mind right now but I am sure you folks can come up with some more ideas!

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Investor John

Investing as a Private investor John has shown success over the last 15 years with a straight forward common sense approach to investing - He can help you to learn and will gladly share his knowledge to get you started.

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