Looking for Storm Plays? Not Too Late for This One
By: Lee Brodie | Producer
Most of the hurricane plays may already be over – most, but according to top trader Brian Stutland, not all.
Stutland, who is a CNBC Contributor, thinks once the markets open again, Generac should have more room to run.
Because most investors think of home improvement stocks such as Home Depot and insurance stocks including Prudential as a hurricane plays, Stutland believes Generac may fly a little under the radar.
However, as a designer and manufacturer of generators, Stutland thinks Generac will experience a spike in sales because of the storm. And when the Street catches on - he expects the stock to pop.
Stutland concedes that the stock rallied about 10% over the past week but, "at 5.5 times earnings, the stock remains relatively cheap," Stutland said.
"I see it as a value play." And in the aftermath of Hurricane Sandy, the founder of Stutland Equities added, "I can see it getting above $30."
Posted by CNBC's Lee Brodie
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