Love Letters: Valentine's Day Stocks Cashing In on Love

Joel Anderson |
Valentine's Day Stocks

In celebration of Valentine's Day, here are some stocks that investors may want to look at to get into the spirit of the romantic holiday. Whether these companies are making chocolate for expensive truffles or designing jewelry given as gifts, these are definitely some names in the game.

The Color of the Season

It's always good to think one step ahead. So what companies are REALLY going to make money off of Valentine's Day? That's right, whatever company is responsible for manufacturing red dyes and inks.

With every bear, sweater, heart shaped calendar, and basically everything else imaginable getting turned red for the holiday, the potential profits for red dye makers are 50 percent higher than during the Christmas. Because now there's no green. Among the bigger makers of red dye in the world are Holland Colours (HOLCO.AMS) and Japan's DAINICHISEIKA COLOR & CHEM MFG CO (4116.TYO).

Say It with a Card

Valentine's Day is another holiday when we're reminded that our emotions and passions are largely irrelevant until they can be encapsulated in a greeting card. Greeting cards make for big business in February, and at the top of that heap is the Hallmark Corporation, which is privately owned primarily by the founding Hall family. However, competing with Hallmark is American Greetings (AM), which expanded last year in March by purchasing Watermark, an English card company.

Chocolate, Like Love, Can Be Bitter and Sweet

The growth in the cocoa industry has been rapid ever since health-conscious foodies started touting the health benefits of raw cocoa beans. This would be before they're mixed with chocolate and cream, like Hershey (HSY) is in the business of doing. However, digging deeper, most of the largest manufacturers of ground cocoa beans are major agricultural conglomerates and food processing companies, with three companies responsible for over 40 percent of global cocoa bean processing. Archer Daniels Midland (ADM) processes 15 percent of the world's cocoa, Cargill 14 percent, and Swiss company Barry Callebaut (BYCBF) makes 13 percent.

If All Goes Well...

Valentine's Day, if remembered, can ultimately help lead couples down the path to another major industry: weddings. There are a number of marriage and wedding related companies, like XO Group (XOXO), a media and technology company dedicated to helping young women get the information they need about pregnancy and marriage. There are also those companies counting on the expensive engagement like Signet Jewelers (SIG) or the Zale Corporation (ZLC).

Tickers That Get in the Spirit

Finally, some companies are getting into the spirit via their tickers. Southwest Airlines (LUV) may be hoping to carry more long-distance lovers together for tomorrow's holiday. Jiayuan.com International (DATE) is a Chinese dating website looking to bring even more people together in the world's most populous country. The iShares MSCI Global Gold Miners Fund (RING) may be hinting at where it hopes its gold is headed in the end.

And just to remind everyone that Valentine's Day can have unexpected consequences if one isn't careful, Banco Santander ($STD), one of the biggest banks in Spain, has a hidden warning in its ticker.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
ADM Archer-Daniels-Midland Company 41.89 -0.01 -0.02 2,363,748
DATE Jiayuan.com International Ltd. ADR (Sponsored) n/a n/a n/a 0
HSY The Hershey Company 94.70 -0.63 -0.66 1,437,677
LUV Southwest Airlines Company 38.54 1.67 4.53 10,038,165
MSM MSC Industrial Direct Company Inc. 71.55 0.12 0.17 390,315
SIG Signet Jewelers Limited 74.69 -1.62 -2.12 1,815,917

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