Zombie Apocalypse Stock Portfolio Triples In 3 Years
By ED CARSON, INVESTOR'S BUSINESS DAILY
Posted 11/11/2013 08:02 AM ET
Zombie aficionados debate whether the living dead should be fast- or slow-moving. But there's no denying that the Zombie Apocalypse Stock Portfolio — companies that should do well in a zombie outbreak — has been lightning-fast.
The zombie portfolio of seven stocks — SolarCity (SCTY), Generac (GNRC), Sturm Ruger (RGR), Smith & Wesson (SWHC), Cabela's (CAB), GNC (GNC) and Pall Corp. (PLL) — has soared by 230% since "The Walking Dead" premiered on Oct. 31, 2010. That compares to 50% for the S&P 500 index.
So far this year, the Zombie Apocalypse Stock Portfolio has jumped 63% vs. the S&P 500's 24%.
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Most of these stocks have been leaders in recent years. Sturm Ruger, Generac and GNC are all on the current IBD 50 list of top-rated stocks.
That zombie stocks have been doing so well may be a harbinger of the end of the world. But that's no reason not to take advantage of investment opportunities now.
Here's a brief overview of the Zombie Apocalypse Stock Portfolio holdings.
Needless to say, a zombie outbreak may interrupt utility service. At-home power will be at a premium. SolarCity and Generac both serve this need.
SolarCity installs solar systems for homes and businesses, with a financing mechanism that's attractive to customers. It's enjoyed rapid revenue growth. Late Wednesday SolarCity reported third-quarter revenue rose 52%. But SolarCity continues to lose money, and forecast a bigger-than-expected Q4 loss. SolarCity fell 17% Thursday. But it's still up 527% from its $8 IPO price in December 2012.
Backup generators also will keep the lights on. Generac sells power generators for consumers and business. While many customers are worried about or responding to power outages from disasters such as Superstorm Sandy, more-confident people are buying backup generators just in case. Meanwhile, construction crews use Generac products for night work and backup power.
Generac last month reported third-quarter earnings and sales growth that crushed estimates. It also raised full-year guidance.
Generac shares shot up for two days to a new high on the latest earnings report. Since then stock has pulled back in declining volume, though it rose Friday.
Outdoor retailer Cabela's is a major shopping destination for any zombie survivalist. Sure, it has guns, but also knives, tents, fishing poles and apparel suited for an earthier existence. Cabela's last month reported weaker-than-expected earnings, citing weaker firearm demand.
Cabela's shares have been gradually falling since failing to hit a new high in early August.
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Black Blade: Sold my RGR and SWHC too early perhaps but I will take the over 300% gains I locked in. Still have CAB and OLN (Winchester ammo) shares. Might jump back ino RGR and SWHC once the short sellers have their day and bring share prices back down.