Monday, October 19, 2009
Halloween Stock Index
It is hard to believe that some of the major retailers have already started advertising for Christmas, when Halloween is still a couple weeks away. Since Halloween is practiced in United States, England, Ireland, Scotland, Wales, Canada, and occasionally in Australia and New Zealand, maybe there are some stock opportunities that may be some treats. Here are some stocks which may benefit from the holiday, but beware; some of them may turn into tricks.
Watching scary movies is one of the popular activities of teenagers on Halloween, either in a theater or renting a DVD. Netflix (NFLX) ships almost 2 million DVDs to customers each day, and has a huge number of horror movies in its collection of 100,000 titles. The stock has a forward PE of 23.
One of the leading studios of scary movies is Lions Gate Entertainment (LGF), which has made such films as American Psycho, Ginger Snaps, Route 666, The Devil's Rejects, House of the Dead 2, Saw VI, See No Evil, Hostel: Part II, My Bloody Valentine 3D and many, many more. Lionsgate has a forward P/E of 39.
Of course, the big beneficiaries of Halloween are the candy companies. Hershey Foods (HSY) is the large chocolate and confectionery company made famous by its Hershey Bars. The stock has a forward P/E of 18, and a yield of 3%.
Cadbury plc (CBY) is a London based confectionery and beverage company which has been making chocolate, gum, mints, and candy products since 1783. The stock has a forward P/E of 20, and a yield of 2%.
Rocky Mountain Chocolate Factory (RMCF) is a very low cap Colorado based company which makes and markets chocolate and candy. The stock has a P/E of 15 and a yield of 4.5%.
Tootsie Roll Industries (TR) makes all kinds of candy for trick-or-treaters including Tootsie Rolls, Tootsie Roll Pops, Caramel Apple Pops, Charms, Blow-Pops, Blue Razz, Zip-A-Dee Pops, Cella's, Mason Dots, Mason Crows, Junior Mint, Charleston Chew, Sugar Daddys, and Sugar Babies. The stock has a forward P/E of 26 and a yield of 1.3%.
Halloween costumes and decorations are available at discount retailers such as Target (TGT) which has a forward P/E of 15, and a yield of 1.4%. Wal-Mart (WMT) is another major Halloween retailer. It has a forward P/E of 13, and a yield of 2.1%.
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Author does not own any of the above.
Posted by Stockerblog at 8:06 PM