Time to Make Money in AC Stocks?

The heat is dreadful these days. It's almost unbearable.

But you can always rely on capitalists to try to make money in any situation, even the unfortunate ones.

And so they're at it again. This time with stocks of companies that make room air conditioners (ACs). The heat waves and rising temperatures of summer have sent these stocks soaring. They've gained up to 24% in just one short month.

Investors seem to be betting on these companies doing brisk business:

But there's a problem.

Some summers will be good, some bad. This one is turning out to be hot as hell, and thus good for AC companies. Last year, it rained early, and thus was a bad season for them.

This surely does not mean that investors mark up or down their estimated value of the business. Because in the larger scheme of things, a good summer is as much a part of the air conditioning business as is a bad one.

Here is B Thiagarajan, executive director and president of Blue Star's AC and refrigeration business, in an earnings conference call with analysts:

We are very clear about our strategy. We are here to play a long-term game, one summer or one quarter is not going to matter.

If one summer or one quarter is not going to matter to the business, why should it matter to investors?