Optionetics: The Economic Impacts of Katrina
OPTIONETICS.COM MID WEEK NEWSLETTER
9/21/2005
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EARNINGS LISTING
10/17/2005 - 10/21/2005
Wednesday, October 17, 2005
Symbol Company Name
ABAX Abaxis Inc
ABNK Amegy Bcp Inc
ACBA Amer Cmnty Bksh
ACO Amcol Intl CP
ALAB Alabama Natl
ASD Amer Std -del
B Barnes Grp
BED Bedford Pty Inv
BLK Blackrock Inc
BNK TD Banknorth
http://www.optionetics.com/aspscript/link_outside.asp?newsDt=09_21_05&url=earnings&p=http://quotes.optionetics.com/optionetics/earncal.asp?date=20051017
Wednesday, October 18, 2005
Symbol Company Name
AGEN Antigenics Inc
AH Armor Hldgs Inc
AIT Appld Indl Tech
AMCC Appld Micro Cir
AMTD Ameritrade Hldg
ARB Arbitron Inc
ARMHY Arm Holdngs Adr
ARTC Arthrocare Corp
ASBC Assoc Banc Corp
ASO Amsouth Bcp
http://www.optionetics.com/aspscript/link_outside.asp?newsDt=09_21_05&url=earnings&p=http://quotes.optionetics.com/optionetics/earncal.asp?date=20051018
Wednesday, October 19, 2005
Symbol Company Name
ABK Ambac Finl Inc
ACL - Alcon Inc
ACMR - AC Moore Arts
ACXM - Acxiom Corp
ADS - Alliance Data
AFFX - Affymetrix Inc
ALFA - Alfa Corp
ALL - Allstate Corp
ALTR - Altera Corp
AME - Ametek Inc
http://www.optionetics.com/aspscript/link_outside.asp?newsDt=09_21_05&url=earnings&p=http://quotes.optionetics.com/optionetics/earncal.asp?date=20051019
Wednesday, October 20, 2005
Symbol - Company Name
AACE - Ace Cash Expres
AANB - Abigail Adams
ABFS - Arkansas Best
ABY - Abitibi-consol
ACAT - Arctic Cat Inc
ACF - Americredit CP
ACS - Affiliated Comp
ACTL - Actel Corp
ACU - Acme Utd
AD - Advo Inc
http://www.optionetics.com/aspscript/link_outside.asp?newsDt=09_21_05&url=earnings&p=http://quotes.optionetics.com/optionetics/earncal.asp?date=20051020
Wednesday, October 21, 2005
Symbol - Company Name
AEE - Ameren Corp
ALE - Allete Inc
ARLP - Alliance Res
BANR - Banner Corp
BLC - Belo Corp-a
CAFI - Camco Finl Corp
CCUR - Concurrent New
CIN - Cinergy Corp
CT:COS - Cdn Oil Sands
CT:LGY - Legacy Hotels
http://www.optionetics.com/aspscript/link_outside.asp?newsDt=09_21_05&url=earnings&p=http://quotes.optionetics.com/optionetics/earncal.asp?date=20051021
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The Economic Impacts of Katrina
By Jeff Neal, Optionetics.com
9/20/2005 9:45:00 AM
As we are quickly discovering, both the short-term and long-term economic impacts of Katrina will likely be felt all across the United States, and to some extent in other countries as well. Of course the tourism industry in the Gulf region will be down for a long time. However, an even more severe blow to the nation's economy will more than likely stem from the destruction of major oil rigs, highways and bridges�all of which, some economists fear, could take us into a recession.
Although the actual likelihood of a recession appears to be remote, the increase in energy prices will damper consumer sentiment in this country as well as wreak havoc with major exporters as they try to figure out just how to reach their customer base if Louisiana ports are not up and running. No doubt the number one concern from an economic standpoint is energy. Prior to Katrina, the Gulf had around 4,000 offshore oil and gas operations connected to land by 33,000 miles of pipeline. In addition, the region accounts for more than one-fourth of the total oil production in the United States.
Currently much of the crude oil production and natural gas production has been shut down and still has a lot of work ahead to get them back online. Refineries and pipelines all need to be repaired as well as ports and roads for both shipping and trucking. The extent of the damage from this huge disaster is significant and will require a huge effort to recover. Even though the United States is releasing oil from the strategic petroleum reserve, many feel that this will not do much to slow down the surge in energy prices since the main problem is refining capacity.
Essentially, this storm has created bottlenecks seemingly everywhere. Whether it is pipelines, refineries, roads, pumping stations, shipping, trucking or other factors, the supply chain emanating from the Gulf region has been put into total disarray. This especially impacts the midwestern part of the country, whose refiners are heavily dependent on Gulf supplies.
It is not just the energy business that has been adversely impacted as many key commodities such as exports like wheat and soybeans and imports such as steel, rubber and coffee have been affected. More than 6,000 ships use New Orleans every year to navigate up and down the Mississippi River. The Gulf ports are major gateways for these exports and imports and are vital to the United States' economy. Agricultural manufacturers have been hurt as they ship huge quantities of grain and soybeans to Mexico, the Caribbean and South America from New Orleans. Damages to barges are also causing a problem since barges are such an inexpensive form of transportation; nothing can really compete with them for grain, steel or anything else that is heavy and doesn't quickly spoil. This will no doubt greatly increase shipping costs at least over the short-term.
Economists hope that the American economy can remain resilient and has the capacity to absorb such a big shock without totally stalling economic growth. However, the storm's impact is expected to certainly affect consumers nationwide other than the obvious increased energy prices. For example, many American companies have shifted to a just-in-time supply chain system that assembles components as soon as they arrive in a factory rather than relying on stockpiles of parts.
However, for this type of approach to work there must be a smooth logistic system. Economists point out disruption to this system coming from Katrina will certainly put a lot of stress on companies that do not have inventories in place. The bottom line is that products that arrived at Gulf ports and were typically trucked through the region will now take longer to deliver. Obviously this major storm will have many short and long-term impacts to the economy requiring both consumers and corporations alike to assess the damage to their bottom lines.
Happy Trading.
Jeff Neal
Senior Writer & Options Strategist
Optionetics.com ~ Your Options Education Site
Visit Jeff's Forum
http://www.optionetics.com/bbs/forum.asp?forum_id=141&forum_title=Ask+Jeff+N
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CBOE NEW LISTINGS
09/20/2005 05-671 Retail Holdrs Trust (RTH/ZJS) 2007 LEAPS�
09/20/2005 05-667 Genitope Corporation (GTOP/GWY/ZPS) 2007 LEAPS�
09/15/2005 05-665 ARIAD Pharmaceuticals, Inc. (ARIA/UAQ/ZUN/LUU) 2007/2008 LEAPS�
09/14/2005 05-661 Headwaters Incorporated (HW/ZPP/LPP) 2007/2008 LEAPS�
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posted by Victor Lloyd Smith @ 9:10 AM
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