I thought it would be good to have a thread to dicuss which stocks are or will be affected by the Queensland floods in either a positive or negative way. Anyone here know of any construction companies or other businesses that are listed on the ASX that will beneift from the eventual rebuilding. Perhaps there are some opportuites here for astute investors. Also which companies will suffer?
Not an indepth study just off the top of my head opinion but transport companies such as toll will probably have issues arising from infrastructure damage. Anything construction or which supplies construction materials (Adelaide Brighton, Leightons etc) will probably do well. My off the cuff pick is Incitec pivot - topsoil washed away will probably mean higher fertiliser pusrchases (+ unaffected producers trying to maximise yields while $ are good). Obviously insurance companies are going to have some payments to make (though less than people would think I'd guess - good old weasel worded contracts). Coal miners and other miners in the area will be hit by lack of production/ability to transport to port (but prices may rise to compensate for this somewhat). Food prices to rise means buying into agriculture businesses not heavily exposed to the flood area (if any on ASX) may have some upswing.
Agree with transport/freight firms will be hit, though can probably add QR National to the list, agriculture (grains/nuts/fruit/veg/etc) will be hard hit and will take time to recover, possibly driving up prices. Good prospects might be household goods suppliers like Harvey Norman, DJ, Myer etc once insurance payouts come through.
Incitec Pivot for the win - very happy with IPL - my 2nd best performer now up 168.6% since I bought it around 18 months ago.
