As the Coronavirus continues to spread, widespread fear has sent the stock market tumbling. However, certain groups stand to benefit greatly from a building epidemic.
The death toll of Coronavirus now exceeds 130, and with nearly 6,000 confirmed cases, pandemic fears led investors to flee their positions. On Monday, markets across the board tumbled in response to growing fears throughout the prior weekend.
The Dow dropped over 450 points on Monday, roughly 1.6%, and other indicators similarly saw price depreciation in the range of 1.5-2%. However, some key players stand to gain significantly if the spread of the virus continues further.
Below are three stocks that are surging on the Coronavirus outbreak.
Lianluo Smart Ltd (NASDAQ:LLIT): +256%
Lianluo is a Chinese medical technology responsible for the manufacture of medical wearable devices and smart devices.
As it closed out the week of January 17, LLIT traded at US$0.52 per share. The day after January 21 CDC activation of the Emergency Response System in the United States, shares jumped to $0.78.
This change was overshadowed by a booming week open, on January 27. In the same manner that markets reacted severely to the growing fears, Lianluo Smart Ltd surged, closing the day out with a share price of $2.75, an increase of over five-times since just 10 days prior.
However, the perceived “overreaction” from the market yielded a -33% correction, as it closed the day at $1.85, for an 11-day increase of 256%.
Alpha Pro Tech, Ltd. (NYSE:APT): +63%
Canadian Based Alpha Pro Tech is a manufacturer of protective clothing. Among other products, this includes protective chemical suits that may be utilized by volunteers working to aid infected patients and disinfect contaminated areas.
It closed out the week on January 17 at $3.50 per share, and when markets reopened January 22, it jumped to $4.85 per.
It similarly peaked on the 27th, at a per share price of US$7.70. A 26% correction closed APT out at $5.70, for net gains of 63%. Traders that were able to sell yesterday could have seen gains to the tune of 105%.
Kawamoto Corp. (TSE:3604): +254%
Japanese based Kawamoto similarly saw massive gains. While they may not be as directly responsible for the treatment of the virus, they may play a vital role as a manufacturer of face masks.
Kawamoto closed January 17 at a price of 591 JPY per share and has surged every day since. Kawamoto closed on the 28th at an all-time high share price of 2091 JPY.
In addition to consumer masks, Kawamoto also sells various hygiene and sanitary products. The firm stocks medical institutions with hygiene and sanitary products, alongside nursing materials and other hospital supplies.
Of course, the best outcome of this situation is the swift and effective containment and treatment of Coronavirus. However, in the event that additional resources are required, and cases continue to spread, these companies are worth keeping an eye on.
Disclaimer: Neither Micky Global Pty Ltd, nor any of its writers, are not financial advisors. The above article is for information purposes only and should not be taken as investment, financial, or any other advice.