5 Stocks To Consider Before The 'End Of The World'
Damian is a member of The Motley Fool Blog Network -- entries represent the personal opinion of the blogger and are not formally edited.
Wouldn’t You Like To Be a Prepper Too?
I heard a startling statistic yesterday. According to a Reuters Poll, twenty-two percent (22%) of all people in the United States believe the world will end in their lifetime. I’ve been mostly peripherally curious at this point, however recent events in Connecticut have caused me to look at this statistic a little closer. For the record, I am NOT a prepper, nor do I play one on TV, although I have watched the National Geographic program which highlights doomsday preppers and their rationale. I am also NOT attempting to rouse a discussion of gun control, however the pressure on Congress to create some form of new legislation may affect the stock prices and businesses of many weapons and ammunition manufacturers.
Assuming the world isn’t ending in my lifetime, and that this prepper movement is yet another money grabbing opportunity for those preying on the fears of others, I am offering just five stocks you should consider, cognizant of this recurring social phenomenon.
Ok, if I were going to join the prepping revolution, I would probably resort to the internet for an anonymous way to amass my survival stash. A quick search for prepping supplies reveals Amazon (NASDAQ: AMZN) furnishing bug out bags to superpails of grains and everything in between. I could collect my supplies without letting on to my Foolish compatriots what I was up to. After all, a true prepper is planning to be a survivor if there is a catastrophic event not necessarily with the intent of helping others survive. Amazon becomes a good buy because of the reticent nature of these types of prepper acquisitions.
When you are bunkered up, trying to survive nuclear fallout, or more likely a natural disaster, a prepper is going to build up an appetite. Having just witnessed our own disaster here on the East coast with Hurricane Sandy, preppers and non-preppers realized how fragile the food supply can be during these times. Costco (NASDAQ: COST) offers for emergencies a mixed supply of canned goods and tubs of grain from Shelf Reliance for a total of 9,687 servings of food; enough for one person for one year. You can also buy a food and fuel kit so you’ll be able to heat up what you’ve collected or boil water with 120 packets of Ready Fuel. Costco is the proven king of bulk-food selling and will certainly get the attention of those shopping for such disasters and long-term survival.
Olin Corporation (NYSE: OLN) is perhaps a short term opportunity with the looming heavy legislation on the horizon. Weapons and ammunition make up a large part of the prepper cache. If you are going to stockpile food, fuel, and other valuable goods in a post apocalyptic world, you’re going to need to keep it from being stolen while protecting yourself and family from looters and others less prepared. Many preppers will jump the gun (pun intended), trying to get ahead of any new legislation and start stockpiling weapons from companies like Sturm, Ruger & Company (NYSE: RGR) and Smith & Wesson (NASDAQ: SWHC). However as a prepper, you need to be able to travel light, so you’ll only want to carry a couple of weapons, but you’ll stockpile guns, ammunition and food at a “check point” for future use or sale. No doubt weapons, ammunition and food could become a tradable commodity in this ominous new world.
This short list represents several companies poised to provide those who believe that to survive a natural or unnatural disaster, it will be necessary to prepare and plan. That plan, as dark as it seems, is bolstered by the recent news, TV shows, and the constant coverage of natural disasters around the world. News of tsunamis, multiple “hundred-year” storms, earthquakes, and the like has a tendency to shape the prepper movement. I’ll take my chances and try to uncover ways to profit from this disturbing trend.
Dubbles has no positions in the stocks mentioned above. The Motley Fool owns shares of Amazon.com, Costco Wholesale, and Sturm, Ruger & Company. Motley Fool newsletter services recommend Amazon.com and Costco Wholesale. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. Is this post wrong? Click here. Think you can do better? Join us and write your own!