Most sin stocks are in-your-face badasses that flaunt their vice (much like Kevin Bacon in Footloose — Greatest movie every, by the way)… but obviously they do it in full compliance with the SEC.
But some sin stocks (or “almost” sin stocks) are hidden within other “friendlier” stocks and you might not realize that buying the friendly stock means buying the dark evil that lurks underneath.
If you want to participate in sin stocks but don’t want a portfolio that would make your mother blush, these 3 stocks nicely “hide” the sin deep inside.
Victoria’s Secret sells sex. I don’t know if they’ll tell you that flat out but you just need to see a catalog or walk by their store to know EXACTLY what is on offer. Ess-Eee-Ecks; plain and simple. Fortunately you can buy sex (err… I mean: You can buy into their business) by buying L Brands (NYSE: LTD). L Brands is a publicly traded company that also owns Bath and Body Works, Henri Bendel, C. O. Bigelow, and La Senza… basically stores that I would never shop in unless my wife gave me a very detailed shopping list and couldn’t do that kind of shopping herself. I haven’t included it in the big list of sin stocks at this time because I’m not convinced that it needs to be there.
Yes, the number 2 skanky magazine of teenage boys everywhere is available as a publicly traded company, comfortably nestled in a company called Friendfinder Network (NASDAQ: FFN). Friendfinder Network started out as a social network and was later bought by the Penthouse publishing company (which changed its name to Friendfinder Networks). So if you want to participate in this kind of stock (let’s just say is considerably more explicit than Victoria’s Secret) then FFN is the stock you want.
Mitsubishi Heavy Industries
The story of Mitsubishi is convoluted but basically here’s the readable version: Mitsubishi is the name of dozens of Japanese companies working in the automotive and industry space. Many of those companies are owned by the private firm Mitsubishi Group. But one company is publicly traded: Mitsubishi Heavy Industries (KK). This company builds big stuff: Wind power, ships, nuclear energy, airplanes… and defense products like missiles and tanks. That makes it a conflict sin stock.
[Photo credit: filax]