Coronavirus Stocks To Buy When An Outbreak Occurs

This post is more for me than it is for you, and in no way a recommendation to buy these stocks. It is my journal listing of stocks that are moving on volume on the latest Wuhan Coronavirus scare. What do we know so far? Very little as it seems many are keeping this thing under wraps. However, more details are pointing to a more significant threat.

It’s hard to determine what is fact and fiction in this new age of “Fake News” , but here is the current Outbreak map and the RO number:

Current #Coronavirus map pic.twitter.com/bVTXcOg2Yr

— James (@JFJAFJF) January 25, 2020

UPDATE: Transmission of #coronoavirus estimated at 2.6 by another research group (lower than the 3.8 initial reports). But 2.6 is still extremely bad —each infected person will infect 2.6 others. Even the authors admit #CoronaOutbreak containment will be very difficult. Thread: pic.twitter.com/Gg2vyIevL4

— Dr. Eric Feigl-Ding (@DrEricDing) January 25, 2020

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Stocks seeing activity due to the outbreak are as follows (Highest price to lowest price): AZN, MRNA, VIR, LAKE, NNVC, NVAX, APT, ICCC, CERS, INO, AHPI, BCRX, AEMD, CODX, CBLI, LLIT

AZN – engages in the discovery, development, and commercialization of prescription medicines for the treatment of respiratory, inflammation, autoimmune, cardiovascular, metabolic, oncology, infection, neuroscience, and gastrointestinal diseases worldwide

AstraZeneca CEO Pascal Soriot told CNBC. “We have a very large presence in China, and are the number one pharmaceutical company there, we employ 16,000 people — so as you would imagine it matters to us, we really care a lot and we’ll monitor this, but it really looks like it’s contained for the time being.”

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MRNA – Creating a new category of transformative medicines based on mRNA to improve the lives of patients. From the beginning, we designed our strategy and operations to realize the full potential value and impact of mRNA over a long time horizon across a broad array of human diseases

Note: “MRNA has received new funding from vaccine alliance CEPI to accelerate its work on a coronavirus vaccine, and it has joined forces with the Coalition for Epidemic Preparedness Innovations on a vaccine approach.”

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VIR – a clinical-stage immunology company focused on combining immunologic insights with cutting-edge technologies to treat and prevent serious infectious diseases.

Note: “$VIR holds a portfolio that includes an antibody for another coronavirus strain, but management is testing to determine efficacy on the Wuhan strain.”

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LAKE – The company offers limited use/disposable protective clothing, such as coveralls, lab coats, shirts, pants, hoods, aprons, sleeves, smocks, and shoe covers; high-end chemical protective suits to provide protection from highly concentrated and hazardous chemical and biological toxins; and fire fighting and heat protective apparel, which is used for the maintenance of high temperature equipment, and for military and airport crash and rescue teams.

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NNVC – NanoViricides, Inc., a nano-biopharmaceutical company, discovers, develops, and commercializes therapeutics for the treatment of viral infections. The company is developing anti-influenza drug candidates at pre-clinical and advanced pre-clinical stage, which include two FluCide drugs comprising NV-INF-2, an oral anti-influenza drug and NV-INF-1, an injectable anti-influenza drug for novel strain of H7N9, Bird Flu H5N1, and other Highly Pathogenic Influenzas

Note: The company announced a secondary offering after the first day spike. Investors gobbled it up, buying the dip like madmen.

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NVAX – Novavax, Inc., a clinical-stage vaccine company, focuses on discovering, developing, and commercializing recombinant nanoparticle vaccines and adjuvants. The company also has pre-clinical stage programs for various infectious diseases, including the Middle East respiratory syndrome coronavirus; and develops technology for the production of immune stimulating saponin-based adjuvants.

Note: Like NNVC, the company has already announced a secondary offering and the stock is recovering from the news.

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APT – engages in developing, manufacturing, and marketing a line of disposable protective apparel, building supply products, and infection control products in the United States and internationally.

Note: APT is LAKE’s little cousin. They almost always move in tandem with each other.

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ICCC –  is involved in the development of Mast Out, a Nisin-based intramammary treatment of subclinical mastitis in lactating dairy cows; and treatments that prevent E. coli K99 and bovine coronavirus, as well as calf scours caused by enteric pathogens.

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CERS – Its INTERCEPT Blood System is based on its proprietary technology for controlling biological replication; and targets and inactivates blood-borne pathogens, including viruses, bacteria, and parasites, as well as harmful white blood cells, while preserving the therapeutic properties of platelet, plasma, and red blood cell transfusion products.

NOTE: Cowen notes that it is encouraged by prior data suggesting that Cerus’s Intercept could be an effective tool against the Coronavirus family.

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INO – a clinical stage biopharmaceutical company, develops active DNA immunotherapies and vaccines in combination with proprietary electroporation delivery devices to prevent and treat cancers and infectious diseases.

NOTE: “INO is developing a vaccine to treat the MERS strain of coronavirus, management may be able to contribute its research toward the Wuhan coronavirus effort.”

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AHPI – Allied Healthcare Products, Inc. engages in the manufacture, marketing, and distribution of various respiratory products for a range of hospital and alternate site settings to the health care industry in the United States, Europe, Canada, Latin America, the Middle East, the Far East, and internationally.

Note: A sleeper Coronavirus play that popped up after traders started searching for companies that had products to treat respiratory problems. The stock was halted on Friday for a few mintues as traders rushed to buy up shares.

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BCRX – a biotechnology company, designs, optimizes, and develops small molecule drugs that block key enzymes involved in the pathogenesis of diseases

NOTE: galidesivir is in a Phase 1 study for a range of viruses, including coronaviruses. The early stage of development may prohibit material contribution in the immediate outbreak, but BioCryst may be able to lend some useful data.

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AEMD – a medical device company, focuses on creating devices for the treatment of cancer, infectious diseases, and other life-threatening conditions. It develops Aethlon Hemopurifier, a medical device that targets the elimination of circulating viruses and tumor-secreted exosomes that promote cancer progression.

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CODX – is a molecular diagnostics company that has developed and intends to manufacture and sell reagents used for diagnostic tests that function via the detection and/or analysis of nucleic acid molecules (DNA or RNA), and to sell diagnostic equipment from other manufacturers as self-contained lab systems.

NOTE: Similar to NNVC & NVAX, the company issued a secondary offering right after the one day spike. Investors gobbled up the dip quick on Friday.

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CBLI – a biopharmaceutical company, focuses on developing pharmaceuticals designed to address diseases with unmet medical need.

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LLIT – offers medical devices, including medical ventilators, general hospital products, medical compressors, and wireless medical products, as well as related supporting products.

NOTE: Similar to AHPI, the stock was halted serval times as traders went down the food chain for respirator products.

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Feel free to add tickers to this list in the comment section.

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I’m still having a hard time getting behind stocks as the Dow approaches 30,000, and the NASDAQ approaches 10,000. Today’s hybrid screen left behind a bunch of topish looking candles, and they even faded $TSLA as it traded near $600 this morning. Did you read what I just wrote? Yes, $TSLA almost hit $600. That’s where we are currently. Bet against stocks, lose your life.

The Chinese New Year is upon us, so get ready for more pandemic with the Coronavirus. I’ll be looking to buy dips in tickers like $LAKE, $NVAX, $APT, & $ICCC. As crazy as it sounds, I almost feel more comfortable buying names like $LAKE over $AAPL at a 1.5 trillion valuation. That is not sound financial advice, it just shows you how elevated I think we are.

Here’s a look at today’s top hybrid movers, courtesy of Exodus. When tickers like $WMT start to look the best, it may be time to pump the breaks: CLICK HERE FOR CHARTS.

Cash continues to be king. There will be hell to pay soon.

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The market continues to trade higher, refusing to pullback, and squeezing all who bet against it. Today’s momentum comes from none other than $BYND, plant protein, and biotech virus plays– thanks to the outbreak in China.

I myself felt like I had the coronavirus over the weekend, as flu season is hitting hard in Louisiana. Regardless of my condition, the coronavirus is a real threat overseas, and the usual suspects are trading higher because of it: $LAKE, $NVAX, $APT, $BCRX, & $ICCC. There are more tickers within this space, and they all should be monitored this week for large potential trades. As far as our momentum screen in Exodus, here are some tickers to watch: CLICK HERE FOR CHARTS 

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This rally is getting a little long in the tooth in my opinion. Today’s momentum screen somewhat confirms it with bearish ETFs popping up, such as $SOXS. The bulls need the semis for a continued move higher, and today’s candle in $SMH looks a little suspect. Gold also found its way back on the screen with tickers such as $AUY, $KGC, $GOLD $NGD, & $NUGT all moving higher by at least 2%.

Enough of the bearish case though, after all this is 2020, where stocks only trade higher. Here are some long ideas to finish the week should we continue to see individual names squeeze higher here: SAVA, ICE, AAOI, SWCH, FSLY, & NVTA (My stock of the year).

Today’s full screen can be found through the following link: CLICK HERE FOR CHARTS

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Cannabis stocks started off 2019 with a bang, but sold off hard in the spring. The remainder of 2019 was a house of pain for anyone who invested in the industry. Fast forward to 2020, and the usual suspects are starting to gain momentum.

The easy trade here is likely $MJ. The usual suspects are $GWPH, $CGC, $TLRY, & $CRON. Speculative names like $NBEV are popping off hard. This move for the group will likely carry into the week. Keep the space on watch.

Here are your early runners, courtesy of Exodus: CLICK HERE FOR CHARTS

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You can’t stop the bull in 2020, you can only try to contain it. Short sellers find themselves in a world of pain as the year begins, and underinvested mangers find themselves with a big case of FOMO. Hence, another gap higher. How high will we go? Is this the Euphoria phase? And, who is buying $AAPL @ a 1.4 trillion valuation? It doesn’t matter. It’s a run-away market.

Let’s pick things up where we left off on Friday and look at the strongest names on Friday: CLICK HERE FOR CHARTS

Tickers of interest from this screen include: RRC, APHA, BIDU, & DDD. Those tickers are a little less than inspiring, and it almost feels like a stretch looking for long ideas here. I’ll probably sit on my hands once again as the week begins. Congrats to those with heavy long exposure.

It’s a runaway market, until it isn’t. See you guys at the open.

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