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Cold Weather Profits

November 28, 2013

During the summer, especially during the heat wave that enveloped the Northeast last July, we discussed some of the investment options that might have been worth taking a look at to generate some returns. As the weather grows colder, however, there are different firms and investment opportunities that might be worth looking at. Just as utility firms benefitted from the heat wave through increased electricity demand and usage, there are firms that could very well benefit from the colder weather. While there is some overlap with utilities, there are several firms that, while solid possible investment options year-round, perform more strongly in the face of colder weather.

Columbia Sportswear (COLM)
Vail Resorts (MTN)
Douglas Dynamics (PLOW)
Decker’s Outdoor Corporation (DECK)
Dick’s Sporting Goods (DKS)

In addition to these “weather-specific” companies, natural gas producers and other utilities benefit from the increased use of heating fuel/electricity. In addition to firms and industries that are directly affected by the weather, another possible angle to examine is one of the technology stocks — if the weather is colder and less enjoyable outside, it might make sense to expect technology usage and demand for new products to increase

Happy Reading!


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