Sozzi: Earthquakes Could Shake These 3 Californian Retail Giants
NEW YORK (TheStreet) -- Ninja-like investment strategists such as yours truly are trained at investigating the root causes of large expected, or unexpected, events either in the economy or at a company. Now, I'm no geologist, and haven't studied rock formations since ninth grade earth science class, but the series of earthquakes that have hit California in March do appear to be pointing to the possibility of one significant earthquake in the not too distant future.
According to geologists, there is now a 5% chance that these recent events lighting up Twitter
It's time to research the amount of exposure a company you own has to California, and the disaster prep work being done by execs. The obvious is to immediately think of Apple's
has 23% of its store base in California. Further, it cites this in its annual report as a material risk factor: "natural disasters, such as hurricanes, typhoons, or earthquakes, particularly in California or in Washington State, where our centralized systems and administrative personnel are located, could affect our operations."
is the largest traditional supermarket in California, with 13% of its store base in the state under the Ralph's, Food for Less, and Foods Co. banners.
is the largest dollar store in California, with 10% of its store base in the state. Additionally, it operates two distribution centers, one in San Bernadino and the other in Stockton.
I am off to buy cans of soup just in case. Brian Sozzi out.
-- By Brian Sozzi CEO of Belus Capital Advisors, analyst to TheStreet.
This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.