Daniel Fisher 06.02.08, 12:00 AM ET
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Who's getting rich off $4-a-gallon gas--and who's feeling the pain? Here are less obvious winners and losers if energy costs continue to rise:
Winners: Titanium producers. Ignore falling prices of Titanium Metals (nyse: TIE - news - people ), Allegheny Technologies (nyse: ATI - news - people ) and Russia's VSMPO-Avisma. Aerospace demand for the lightweight metal will triple to 260 million pounds a year by 2018, says consultant AeroStrategy. Even if higher fares reduce air travel, airlines will refresh fleets with more efficient and titanium-loaded planes like the Boeing (nyse: BA - news - people ) 787.
Losers: With prices sky-high, demand for petroleum in the U.S. is expected to fall 1.6% this summer. Refiners like Valero (nyse: VLO - news - people ), Sunoco (nyse: SUN - news - people ) and Holly Corp. (nyse: HOC - news - people ) will suffer as this reduced demand translates into slimmer refining margins.
Winners: Mass transit, urban development. City officials like the dense development light-rail projects bring. Building those projects: AvalonBay, Post Properties (nyse: PPS - news - people ) and BRE Properties (nyse: BRE - news - people ).
Losers: Exurban builders like Centex (nyse: CTX - news - people ), Pulte, D.R. Horton (nyse: DHI - news - people ) and Lennar (nyse: LEN - news - people ). Long commutes are becoming deal killers for home buyers. Raw-land inventory values will drop further.
Winners: Electric vehicle makers. Dinky, but those glorified golf carts from Chrysler's Global Electric Motorcars, Zap and Zenn Motor Co. are looking sexier with every uptick in gas prices.
Losers: Muscleboat manufacturers. Boats like the 42 Executioner from Fountain Powerboat Industries (amex: FPB - news - people ) burn $200 worth of fuel an hour. Other likely casualties: Challenger Powerboats (in Chapter 7), Brunswick, Marine Products (nyse: MPX - news - people ).
Winners: Automotive components makers. Continental AG (other-otc: CTTAY.PK - news - people ) (piezo fuel injection), Bosch, BorgWarner (nyse: BWA - news - people ) and Denso (engine controls) and Eaton and Honeywell (nyse: HON - news - people )'s Garrett unit (turbochargers) all help automakers meet efficiency standards.
Losers: Automotive components manufacturers. American Axle & Manufacturing, ArvinMeritor (nyse: ARM - news - people ) and Dana specialize in parts for big pickups, SUVs and other gas-guzzlers. Many in the industry that aren't already bankrupt are reporting falling sales and rising losses.
Winners: Plug-in hybrid kit makers. The $9,995 Hymotion from A123Systems turns a 46mpg Toyota (nyse: TM - news - people ) Prius into a 100mpg-plus fuel miser by allowing drivers to refill at the nearest electric outlet for less than a buck.
Losers: Plug-in hybrid kit buyers. Even if gas goes to $5 a gallon, you'll need a decade to recoup the cost of the kit for a 30-mile-a-day commute. Toyota may void your warranty if you install it .
