Last week's stunning turn of events is still very fresh, as is the market's early take on it all. Any Brexit-like reaction was relegated to the futures markets late Tuesday and early Wednesday, and it's been off to the races ever since. Unfortunately (or fortunately depending on your perspective), we never got the opportunity to take advantage of a panic-selloff entry point.
Still, there's been an interesting array of winners and losers in my portfolio thus far, as early in the game as it is. The biggest beneficiary, by far, has been Corrections Corp. of America (CXW) , which is up 37% since Wednesday. The stock had been hammered by the cancellation of a contract by the Bureau of Prisons, along with speculation that the government would move away from doing business with for-profit corrections companies. In essence, the stock's plunge from the $35 area in August also priced-in a Hillary Clinton victory as she was not shy about her disdain for privately run for-profit prisons.
Despite the recent run-up, CXW stock is still down 45% in the past three months. Currently yielding 11%, I'm not sure that the Donald Trump's victory will be enough to stave off a dividend reduction, but it should be a much friendlier environment for the industry.
Boating retailer West Marine (WMAR) is up 13% the past four sessions, likely the beneficiary of speculation that the new administration's tax policies may spur real economic growth, and entice consumers to open up their wallets.
West Marine still looks cheap, trading at 1.05x net current asset value and 0.75x tangible book value per share. The company also has $3.76 per share in cash, and no debt. It posted lower-than-expected third-quarter results in late October, but the market has shrugged them off.
FreightCar America (RAIL) is another big winner, up 32% since Wednesday, a nice rebound after the company reported less-than-stellar third-quarter earnings two weeks ago. The stock still looks cheap, trading at 1.32x net current asset value, and 0.8x tangible book value per share, and appears to be a beneficiary of potential reduced regulations, and perhaps a rebirth in the coal industry with a new sheriff in town.
Meanwhile, Argentine farming giant and asset play Cresud (CRESY) has not fared so well, falling about 7% since Wednesday. Argentina's Merval Index is down nearly 10% since Election Day, and emerging markets have reacted negatively overall given the uncertainty surrounding trade deals with Trump at the helm.
It's still early, for sure, and whether any of these gains (or losses) will hold remains to be seen.