Hurricane Stocks

[littlefish]

GV is my pick NYPD- good to see you this year. I recall you having some good posts last year too with storms. Looks like a good core group here:) Even after last year's lousy potential hurricane play investments.

It's a partial hurricane play with GV:


http://investorshub.advfn.com/boards/read_msg.aspx?message_id=30651592

The most relevant parts regarding hurricanes include their statements with these parts IMO:


Revenues and results of operations in our electrical construction business can be subject to seasonal variations. These variations are influenced by weather, customer spending patterns and system loads. The Company primarily performs work in the southeastern United States. Electric utility customers normally perform their system upgrades and maintenance work during off-peak seasons when the demand for electrical power is reduced, which is in the first two quarters of the year in the southeast region of the United States. This pattern is apparent by the reduction in the number of active projects in the third quarter.
**However, since hurricane season normally peaks during this period, this pattern can be offset with
storm restoration work resulting from hurricane damage.**


When disaster strikes, Southeast Power continues to
rise to the challenge. Our personnel and our extensive fleet are prepared to mobilize immediately and operate under the most adverse conditions while ensuring the critical time constraints of our customers are met. Our crews have played a major role in storm restoration activities in and around the Southeast for every major hurricane to strike the
region in recent years.


Also, they have a stable workforce so should be able to respond promptly with storm damage work IMO:

As of February 29, 2008, we had 119 employees, including 98 hourly-rate employees. The number of hourly-rate employees fluctuates depending upon the number and size of projects under construction at any particular time. We have no unionized employees and believe that our relationship with our employees is good.

As of February 28, 2007, we had approximately 120 employees, including 100 hourly-rate employees. The number of hourly-rate employees fluctuates depending upon the number and size of projects under construction at any particular time. We have no unionized employees and believe that our relationship with our employees is good.

As of December 31, 2005, we had approximately 123 employees, including 105 hourly-rate employees. The number of hourly-rate employees fluctuates depending upon the number and size of projects under construction at any particular time. We have no unionized employees and believe that our relationship with our employees is good.


Here's a partial list of customers:

Florida Power & Light Company
Progress Energy
Lee County Electric Cooperative
JEA
Kissimmee Utilities Authority
Orlando Utilities Commission
Santee Cooper
Central Electric Power Cooperative

And their elect biz backlog has grown quickly from about $6 mill at end of 2007

(Backlog for our electrical construction operations at December 31, 2007 was $5.9 million, which represents the amount of revenue that we expect to realize from work to be performed on uncompleted contracts, including new contractual agreements on which work has not begun.)

to over $12 mill at end of March 2008

( As of March 31, 2008, the electrical construction operation’s backlog was approximately $12.2 million, which included approximately $2.0 million from fixed price contracts for which revenue is recognized using percentage-of-completion and approximately $10.2 million from service agreement contracts for which revenue is recognized as work is performed.)



to now apparently about double that (approx $24 mill) based on the June filing of new backlog work:

http://www.sec.gov/Archives/edgar/data/42316/000114420408037620/v118707_ex99-1.htm


Granted, much of this work is service agreement (probably potentially less concrete in nature) and not fixed contract work. I'm not sure whcih is higher margins and will call the CEO to clarify if either is higher typically or if it varies. But going from about $6 mill backlog to now about quadruple that ($24 mill) in about 2 Q's time is reassuring in part of some turnaround in their customer demand as well as maybe some geographic diversification in bidding and also better pricing in bidding IMO.




Looks like Dr M is downplaying the chances of a storm forming next week between CV and the L Antilles now with latest model runs being more scattered and random. Although the GFS is still developing something around the 16th I think.




I don't mind stealing bread from the mouths of decadence... But I can't feed on the powerless when my cup's already overfilled.
-Temple of the Dog


"We didn't build this company on the sniff of an oily rag."
-Anonymous