A Sunny Forecast for Ruddick
I am always looking for underappreciated constants when trying to identify prospective investment opportunities. How do I define an underappreciated constant? Earlier this week I wrote a column about the connected car. The underappreciated constant was the rapidity in which automakers were bringing the connected car to life beyond the functions offered by Ford's (F) once-cutting-edge SYNC system. Where there is an underappreciated constant in the market, there are often undervalued stocks, because investors have not factored in the earnings power of the items or services a company is selling into an expanding, underappreciated market.
Upon further thought, weather popped into my mind as an ongoing underappreciated constant, specifically, weather that triggers abnormal, positive buying habits by consumers. Regardless of where you stand on global warming (ride your bike to work or gas up the SUV), weather patterns, in my view, have seemed outright odd lately. Massive tornadoes have ripped through the Midwest. Above-average temperatures pretty much existed the entire winter, spurring early consumer demand for full-priced apparel and sports equipment from Dick's Sporting Goods (DKS) and early shipment of Zero Turn mowers to home centers from Toro (TTC). Far be it from me to assume the role of legendary weatherman Al Roker, but Mother Nature is sending us a message and I think it's to brace for a volatile 2012 hurricane season....558 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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