The recent earthquakes in Japan and Chile and the resulting tsunamis have created worldwide attention that should influence these three stocks this coming week. Some people have issues with profiting from world disasters, but after making over $100,000 within a few days during the Asian tsunami of 2004, I don’t share such timidity. I am a trader and when superior opportunities present themselves, I strike.

[Ed. Note: We’re not trying to put a price on the recent natural disasters. In fact, Agora Financial has donated more than $82,000 to the relief efforts in Haiti. But we’re committed to bringing you a diverse range of investment ideas – including today’s.]

I understand that risk-reward is in my favor if I remain calm, collected and prepared when others panic and waver – and you can too…

Here are the three earthquake and tsunami stocks I’m watching this week:

Teledyne Technologies Inc. (NYSE: TDY) acquired Benthos which jumped 70% during the 2004 tsunami as the company makes a component of a tsunami warning system…A years’ old press release reveals these tsunamis are great press for this technology even if the stock is probably too large to move much… This stock is a potential buy.

Taylor Devices Inc. (NASDAQ: TAYD) is the stock, as I detail in my book An American Hedge Fund, that I made $200,000+ on in one day (after losing over $100,000 the previous day by shorting too early) back in 2004 as they make earthquake absorption equipment…their website describes that Taylor Dampers literally soak up the energy of earthquake induced motion, preventing structural damage… This stock is a potential buy, although if it does spike, it’ll probably be too quick so it’ll make a better short after the momentum wears off (learn from my ultimately successful but hugely flawed 2004 trade).

Sutron Corp (NASDAQ: STRN) makes tide stations, which monitor the seas and can detect storm surges and tsunamis… Keep in mind that Sutron’s stock is illiquid, but the chart is still steady enough to justify a trade. We’ll need to see trading volume surge to make it worthwhile.

Sincerely,
Tim Sykes, TimothySykes.com
for Penny Sleuth

March 3, 2010

Tim Sykes

As detailed in his bestselling autobiography An American Hedge Fund, after his $12,415 Bar Mitzvah Gift money into a fully audited pre-tax sum of $1.65 million from 1999 to 2002, Timothy Sykes founded Cilantro Fund Mgmt., LLC in 2003. He was named to Trader Monthly’s 2006 “Top 30 under 30” as Barclays ranked Cilantro the #1 Short Bias Fund for 2003-2006. Since 2007, Timothy has been teaching others through his blog while maintaining his position as the #1 trader out of 45,000 traders on Covestor.com. He has been featured on every major TV network, BusinessWeek, Reuters, Forbes and the New York Times and currently writes for AOL Money and TheStreet.com.

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