Generac reaches new highs as nor'easter approaches
NEW YORK (AP) — Shares of Generac Holdings Inc., which sells generators, jumped to all-time highs Monday as residents of the Northeast prepared for the approach of a potential nor'easter.
THE SPARK: A nor'easter has been forming in the Gulf of Mexico and the storm is expected to begin moving up the East Coast this week, eventually bringing strong winds, flooding, and snow and rain. Much of that weather is expected to affect areas that were hit by Superstorm Sandy last week.
THE BIG PICTURE: Generac sells home stand-by and portable generators, and the company has seen its shares surge. On Wednesday, the Waukesha, Wis., company raised its full-year outlook because of Sandy and because it expected strong sales of generators in many states.
SHARE ACTION: Generac shares rose $4.25, or 12.4 percent, to $38.60 on Monday. The stock peaked at $39.18, their highest price since the company completed its IPO in February 2010.
The stock is up 36.3 percent since Oct. 26, the last trading day before Superstorm Sandy hit. Generac shares have climbed almost 70 percent since Sept. 28.