Mine Safety Appliances (MSA)
No industry likes seeing more regulations — except for those firms that help energy companies comply with those new rules. In the oil and gas industry that would be Mine Safety Appliances (MSA).
The company provides all sorts of safety equipment — from helmets and breathing apparatus to test systems and monitors — for a variety of industries. However, roughly 33% of its profits come from the energy and petrochemical sectors.
With the EPA and the Obama administration cracking down on the energy sector, various pundits expect a series of new rules to begin entering the shale fields. Aside from emissions, many postulate that worker safety — especially in the wake of the BP (BP) fiasco — will be a major sticking point.
These new rules benefit MSA and its sales. Already, MSA stock boasts a healthy 2.4% dividend. However, as more wells are tapped, MSA will sell more safety equipment and should be able to boost that further.
As of this writing, Aaron Levitt did not hold a position in any of the aforementioned securities.