An investment manager of my aquaintance has been buying shares in the company that owns those nuclear plants in Japan.
It is, of course, a bet, even if a well informed one, that the way the media have been reporting this is overblown.
I think we\’d all rather hope that he makes a lot of money out of this, eh?
For what little it\’s worth (I have no inside information and only a smattering of detailed knowledge about nuclear power plants) I think he\’s right.
Those generating plants are badly damaged – the whole building has been cooked … probably no longer suitable for original purpose.
Ah, the old disaster play. Seem to remember that people made a lot of money on Exxon after the Valdez incident.
If the company is normally profitable, and the incident isn’t big enough to bankrupt them, there’s probably long term gain to be had from the short term pain.
Imagine BP was probably a candidate after the Gulf of Mexico too…
Chris – re BP… It was!! 🙂
I was taught that the last thing you want in a crisis play is a real crisis.
Is this a hit to one year of profits, or does it hole them for years?
Sounds like a good bet. Go on, save me some trouble, tell the the ticker symbol.
Tim adds: It’s in Japan, so I can’t even type it, even if I knew what it was…..actually, I’ve found it.
http://advance.quote.nomura.co.jp/meigara/nomura2/quote.cgi?F=english/equote&QCODE=9501&MKTN=
Hmm, he seems to have made 20% since he bought yesterday. Pretty good bet actually….