The Era of Disaster Recovery and Prevention . . . And What It Means to Investors

The recovery from Katrina and Rita ushers in a new era of Disaster Recovery and Prevention. Governments and people are rethinking their response to disasters and the steps they can take to prevent or minimize the worst consequences. The biggest catalyst for this new era is the political fallout from Katrina.

The slow response to Katrina was a black eye for the Bush administration. For Michael Brown, the former head of FEMA, it was a national humiliation. The fate of Louisiana Governor Kathleen Blanco and New Orleans Mayor Ray Nagin remains to be seen, but reports have indicated their failure in preventing and fighting, and that will play a role. Election time

President Bush wants to make the failed response (and restore some political capital) and has a recovery effort that could total $ 200 billion dollars allocated. The early response to Katrina has become a cautionary tale for politicians and bureaucrats in the federal, state and local governments, and you can be sure that they will be pushing for to avoid spending their own fiefdoms. More disaster And the media is keeping watch - in California newspapers are filled with stories warning about the lack of a disaster (especially earthquake) preparation in the state.

The Army Corp of Engineers, burned by the lack of follow-through to increase the New Orleans levees on their recommendation is now looking to recover in the country. To sensitive areas And they are not alone.

New homes have multiplied along vulnerable coastal areas. From Florida to the Outer Banks in The Hamptons and all throughout the east coast, its coastal property values ​​rose. Dune Road, a strip of land with expensive homes between the ocean and a bay in Westhampton, New York, was virtually wiped out by floods little more than a decade ago. Now rebuilt with even more expensive multi-million dollar homes. You can be sure these homeowners will spend what it takes to protect their properties.

And they may need to, because it seems like big storms are brewing. If many meteorologists are correct, we have entered. A cycle of increasing frequency and severity of hurricanes

Combine scheduled for homeland security measures, the reconstruction of the Gulf Coast and the provision of disaster prevention in the country and you have an almost permanent state of disaster recovery and prevention.

For some companies, let's call them Hurricane stocks, the opportunity to take part in the Gulf recovery means more business in the short term. For others it may mean more business for many years to come.

Hurricane stocks are companies that are now required. For example, the immediate need to help those whose homes have been destroyed or are uninhabitable. Think of companies who temporarily live and survival gear to offer. Think of Coleman camping products such as tents, sleeping bags, portable stoves, flashlights. Coleman is owned by Jarden (JAH: NYSE).

Manufactured homes have come a long way in the past decade, and will prove to be a good temporary solution for many and a permanent solution to the others in the Gulf are. Cavalier Homes (AMEX: CAV) is contracted to build and deliver manufactured homes to the Federal Emergency Management Agency to house Gulf Coast residents displaced by Hurricane Katrina. The contract is expected to generate $ 58 million to $ 63 million in revenue for the company.

Some other compnies in this sector include Champion (NYSE: CHB), which together with nearly 3,000 independent retailers, builders and developers,
Fleetwood Enterprises (NYSE: FLE) and Coachmen Industries Inc. (NYSE: COA).

Oil and gas installations in the Gulf coast also need emergency repair. The economy of the Gulf Coast and, to some extent, the U.S. economy depends. Some rigs were damaged in the storms, which means that a company like ENSCO (NTSE: ESV) which owns drilling rigs in the area, will be in great demand. Oceaneering International (NYSE: OII), underwater infrastructure of the oil installations inspects and repairs, will be busy, as will Jacobs Engineering (NYSE: JEC), providing engineering and construction services for oil and gas companies.

Rebuilding the Gulf Coast 

Rebuilding the big dogs in the building, such as Halliburton (NYSE: HAL), The Shaw Group (SGR) and Caterpillar (NYSE: CAT). But many smaller companies will also participate, often as subcontractors. The Army Corp of Engineers has its task increased from $ 10 million to $ 20 for Aduddell Roofing, a subsidiary of Zenex International, Inc. (OTCBB: ZENX). National Storm Management (NLST: PK), a growing national construction company specializing in storm restoration management, will also do a good deal of restoration work in the Gulf Coast.

You need to build materials. Home retailers such as Home Depot and Lowe's will look to increase their orders but so will companies that supply raw materials such as wood. Take a look at Rayonier (NYSE: RYN) and Plum Creek Timber (NYSE: PCL), two REITs that own and manage timber properties.

Some Hurricane and rebuilding stocks have jumped and retreated. But the point to remember is that while the hurricanes resulted in an immediate need for those in dire need of help, they know also the beginning of a new era, an era in which governments and people in the U.S. and around the world that they can do to recover from disasters and minimize the consequences. more So keep an eye out for companies that will be in the center of the Disaster Prevention and theme for the coming years.

Leon Altman founded and  two websites that provide news and commentary on stocks to offer. Sign up for newsletters on the sites.

7 Simple Steps to Financial Freedom and Wealth Building - Step 3

Simple Steps to Financial Freedom and Wealth Building

STEP 3: The Best Escape Vehicle - The Trading Business 

Now that we have set in step 1, and screened by the possible Investment Vehicles our goals in step 2, we will look at the best car that met all the criteria in step 2.

Only two cars met the criteria in step 2. These two investment vehicles - stocks and stock options. While stocks just barely made it, share comfortably passed the criteria with ease.

Using the market for financial gain can lead to financial freedom or financial ruin. Without putting even think too much, this is a car that has more millionaires - multi-millionaires - than any other form of investment, but also has more foreclosures than any other investment choices. Of all exchanges markets, including commodities, equities and currencies, the, the options market has the greatest potential for unbridled profits because it provides leverage that no other market. In most cases, leverage is a double-edged sword and is normally associated with a type of borrowing. Leverage increases profits but also losses. In the Stock Market, leverage is there for anyone to use - it increases profits but losses can be limited because there is no borrowing involved.

While the options market provides excellent leverage on investment, it remains as the market with the highest chance of losing money for the naive investor as it is one of the most complex markets - making the child stock trading game. Nearly 85% of options traders lose their investment in the options market. Despite the dangers, options are excellent investment vehicle. Like fire, it allows everyone to ensure a comfortable life, if used correctly, or it can destroy and kill, if used recklessly. The key is to know how to use it to your advantage.

The uncertainty of the options trading is something we all do without, but it is a necessary part of the game. The trick is to have a profitable business strategy where investments are made consistently and copied conceive month after month. After all, the most successful companies in the world, replicating their business models for years. If you care about your financial future and realistically expect to achieve your goals, you must have the patience to follow an operating system - for now and for the future. Find a business strategy that works and stick to it religiously.

Now we have a clear picture, let's move forward. Tomorrow is the day where we put our business.

Keep a look out for STEP 4: The Business Setup 

Copyright 2005 William Tan

CASHFLOW AVENUE is set to Low-Risk Options Trading Recommendations to deliver the common traders in their pursuit of financial freedom and a better lifestyle.