Investing When Disaster Strikes

Sep 6th, 2007 | By Greg Guenthner | Category: Investing Strategies

Many people I’ve talked to outside the financial world have looked at the state of the stock market recently and declared it a disaster. It’s not just the folks on Wall Street who are shook up, but the general public as well.

No matter how the markets move, there’s still money to be made in uncertain or dangerous times, whether you’re talking about the stock markets or society as a whole.

After all, someone needs to be there to pick up the pieces…

It’s the rallying cry of any experienced politician after disaster strikes: “We will rebuild, no matter what the cost…”

When the World Trade Center towers fell on Sept. 11, 2001, there wasn’t a soul in New York — or anywhere else in the United States, for that matter — who believed Manhattan’s streetscape would be left with two gigantic vacant lots. We would rebuild, of course, no matter what the cost.

The same holds true for natural disasters. Two years after Hurricane Katrina battered the Gulf Coast, the government, private enterprise and charities continue to pour billions into cleanup efforts. As of last summer, the federal government alone shelled out $3.6 billion to cart off nearly 100 million cubic yards of debris from the area. And cleanup efforts continue to this very day.

Many companies have been making money hand over fist, while at the same time rebuilding New Orleans and other areas that got blasted. You may already be familiar with a company named Home Solutions of America, Inc. (NASDAQ: HSOA). This is the company that is currently in a very heated battle with a short seller that has been slandering the company in the news this past year. But you may also know of this company as one of the leading restoration companies in the rebuilding of New Orleans.

A disaster like Katrina is devastating. It leaves hundreds of thousands and, sometimes, even millions out of their homes. And it’s not easy to think about making money off of it, but you can’t see it that way. Even in disasters like this, the companies that help people can also bring investors huge profits. Take a look at what happened to Home Solutions’ stock price when they were rewarded with New Orleans restoration contracts:

Price Jumps in Restoration Business

Of course, there is even more work to be done after the debris is swept under the rug. Hazardous and toxic wastes from mining operations, industry and the like are routinely leaked onto agricultural land, city streets and residential neighborhoods during flooding. In fact, this type of cleanup is almost always necessary whenever flooding occurs.

From catastrophes to local disasters, there’s money to be made in making things new and livable once again. This is something I’ve been following for quite a while and plan on continuing to follow until Wall Street realizes how valuable these companies are…

Best,
Gunner
September 6, 2007

P.S.: The restoration industry is big business, and one miniscule company has the wherewithal to tackle any difficult cleanup. Its subsidiaries employ the scientists and technicians that can handle everything from mold to asbestos and hazardous waste removal. And now, the middle of hurricane season, is the perfect time to make your move.


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Greg Guenthner

Greg Guenthner uses his experience as a former journalist to dig up the hard-to-find headlines that could lead to big gains for your micro-cap portfolio. Greg offers his readers the scoop on topics ranging from alternative energies to biotechnology, digging up the best penny stock opportunities before they’re discovered by the mainstream media. On top of contributing to Penny Sleuth, Greg also heads Penny Stock Fortunes and Bulletin Board Elite. Special Report: Imagine Getting Rich as Ignored Stocks Soar - You could turn $200 into $1.2 million!

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