One of the features of the stock market is that it allows you to profit literally from any event significant for the world. Under the Japanese tsunami, credit organizations, construction companies and garbage processing companies benefited. During the Iraq war, investors made money on the securities of gold and oil companies.
The current situation with the Chinese coronavirus is no exception. Shares of many giant corporations crashed. However, there are also assets whose exchange rate is continuously moving upwards with the spread of SARS 2019-nCoV.
Whose stocks can and are already increasing in price?
According to professional traders and investors, the securities of the following companies may be interesting in the short term and / or are already profitable:
- Bristol Myers Squibb. The cost of one BMY share is now in the range of $ 54. The organization has a franchise for the treatment of human immunodeficiency viruses. Thinking about including at least the minimum amount of assets in the investment portfolio should be mandatory;
- With the H1N1 epidemic, demand for Clorox brand products that “kill everything” grew by 10%. Note that the main product of the issuing company is bactericidal wipes. Therefore, raising CLX shares to $ 160 per unit in the current situation is not surprising;
- Novavax Inc. The American pharmaceutical company has become famous, inter alia, for developing a vaccine against the deadly MERS-CoV virus. Therefore, months earlier, and especially now, when the company sent a request to raise $ 100 million to create a drug against Chinese pneumonia, the interest in NVAX shares is more than justified.
However, there is a nuance – after the news about raising funds came out, the cost of securities jumped sharply by 100%, but on the next trading day it went down. The fact is that the main investors are afraid of diluting the share in the corporation, and therefore, probably, an additional issue will be introduced on the assets, which can also cause a short-term depreciation;
- Vir Biotechnology. The organization works in the field of clinical immunology, combining innovative technologies and immunological information in the fight against serious infectious pathologies. The securities price of a biotechnological company from San Francisco for the first time attracted the attention of specialists by a 30% increase on 01/21/2020. We remind you that the IPO of the company was carried out only last fall. The NASAQ’s historical VIR price peak is $ 27.48. Since the beginning of 2020, the value of shares has increased by about 70%. Many experts believe that it is Vir Biotechnology that is able to create an effective vaccine against 2019-nCoV, given that in 2019 the company has already developed antibodies to other strains of coronavirus.
As a protective asset, it is recommended to invest in gold. Take a closer look at undervalued stocks. Thus, according to estimates of the sell-side of Wall Street analysts, the securities of CME Group (US stock exchange group) in the medium term have a growth potential of more than 10%.
Private investors should take a closer look at the ETF with a pharmaceutical focus – shares in the Vanguard Health Care Index Fund and MSCI China Health Care ETF. Securities of Allied Healthcare Products, Primerdesign, Gilead Sciences and Lakeland Industries are unlikely to decline in the coming weeks and months – these companies are engaged in the supply of chemical protective suits, the creation of vaccines and the sale of protective masks.
Alpha Pro Tech, Ltd. – investments in remedies
I would also like to single out NYSE: APT shares. The company is engaged in the manufacture of protective clothing and masks, i.e. of those goods for which demand is now extremely high and is unlikely to decline in the next few months.
We have focused on Securities Alpha Pro Tech, Ltd. her by accident. The fact is that the producer’s stock price reacted to outbreaks of various epidemics in a hundred cases out of a hundred. A few examples from the story:
- Ebola Epidemic (2014) – the rate increased by 500%;
- Swine Flu (2009) – the price jumped 700%;
- SARS-CoV virus (2003) – the cost has gone up by 300%.
Over the course of many weeks, the value of NYSE: APT shares is only growing.