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What about mobile home stocks for Hurricane season?? Do you know how easily mobile homes are destroyed during hurricane season?? Think about it.. Heres a an example of what Hurricane Charley did....
NEW YORK -- (Reuters) Shares of mobile home manufacturers traded higher this week on the hope business would increase after the destruction Hurricane Charley wreaked in Florida over the weekend. Shares of Ocala, Florida-based Nobility Homes Inc., for instance, jumped 12.6 percent, or $2.38 to $21.27 on Monday. As of mid-day Wednesday, it was trading at $21.89.
Although it is too early to tell, Nobility Homes Chairman and President Terry Trexler, said that, if the fallout from Charley is similar to the damage inflicted by Hurricane Andrew in 1992, his company could see a boost.
"We know that our owned model centers will probably see an influx of business from people moving up," Trexler said. "Typically it will last six to nine months. It won't be a short period of time because it takes a while for all these things to happen."
Following Andrew, Nobility received orders for at least 200 homes, including one for more than 150 from the Department of Agriculture to rebuild homes for migrant farm workers.
In its 36-year history, Nobility has sold 45,000 mobile homes. Florida is virtually the company's only market.
"He's already doing very well in terms of year-over-year sales," A.G. Edwards & Sons analyst Art Havener said. "I think this one is going to help incrementally."
The shares larger mobile home manufacturers also rose. Champion Enterprises Inc. is up 10 percent, currently hovering around $10.11 per share. Likewise, Fleetwood Enterprises Inc. shares rose approximately 10.5 percent, and are trading at around $12.01.
But Barbara Allen, an analyst at Natexis Bleichroeder, downplayed the significance of the rebuilding on overall quarterly results for the national companies. She attributed the stock rise to optimism by retail investors.
"It's so irrelevant to a national company's earnings," she said. "I have never in my career seen a hurricane have anywhere close to a measurable impact on anybody's earnings."
Charley also inflicted varying damage to some mobile home parks operated by real estate investment trusts.
American Land Lease Inc. said it expected to spend $150,000 to $250,000, or 2 cents to 3 cents per share, to restore facilities and equipment Charley damaged or destroyed. But the company said it still expected to generate funds from operations, a key REIT profit measure, in the range of $1.40 to $1.60 per share. Its shares were down less than 1 percent, or 17 cents, at $18.99.
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ABIX (nasdaq) - Industrial supplies and protection gear for clean up AMEP (otcbb) - Oil and Gas exploration with wells inland Texas, won't be hurt by hurricanes in Gulf BUGS (otcbb) - Environmental waste clean up CHDT (otcbb) - Holding company that has several business segments, including building materials, and back up power generators CPST (nasdaq) - Power generators ECCI (otcbb) - Portable water decontamination systems, based in Texas HMSG (pink) - Security services for offshore oil rigs, power and construction crews IPII (nasdaq) - Building materials in the Southeastern United States LSTR (nasdaq) - Trucking NLST (pink) - Roofing and construction, insurance based restoration PDGE (otcbb) - Environmental clean up and construction, including mold remediation WEGI (otcbb) - Waste removal, remediation, and disaster restoration including emergency response WWAT (otcbb) - Solar to electric power for water pumps, electric grids, and various AC motors ZENX (otcbb) - Roofing for post hurricane repair
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