Tuesday, April 28, 2009

Swine Flu: Complete List Of Winning And Losing Stocks

. Tuesday, April 28, 2009

By stockOzone team

The swine flu outbreak in US, Mexico and Canada has spurred fears of widespread damage to global economy and subsequently financial markets.The World Health Organization has raised its pandemic alert level from Phase 3 to Phase 4 for the deadly swine flu outbreak, signaling that the infection is spreading fast across various continents. Swine flu cases in the U.S. have doubled to 40, and Mexico’s toll of flu-related deaths rose to 152. Israel, New Zealand, Canada and Scotland have confirmed their first case of swine flu while there are suspected cases in Australia, France, Brazil.Though Wall Street too remains concerned that swine flu could pour cold water on any global economic recovery, several companies could still benefit.

WINNERS:

1.GlaxoSmithKline (NYSE: GSK): The London based drugmaker manufactures Relenza, the anti flu vaccine. The company definitely stands to benefit from increased demand for flu vaccinations in the wake of the outbreak.

2.Roche Holdings: The Switzeralnd based drugmaker manufactures Tamiflu, another effective treatment for flu.

3.Gilead Sciences Inc. (NASDAQ: GILD): Tamiflu, which is an oral treatment, was originally developed by Gilead, which receives royalties from the drug's maker, Switzerland-based Roche.

4.Novavax (NASDAQ: NVAX): The drugmaker's experimental vaccine for one strain of avian influenza has produced a strong immune response in human test cases so far. Novavax recently said that utilizing its specialized technology, it could produce a suitable vaccine for swine flu in near future.

5.Baxter International Inc. (NYSE: BAX): The company recently said that it has the expertise to develop vaccines against potential pandemic flu viruses. Baxter, which primarily develops seasonal and pandemic vaccines, has requested samples of the swine virus to do laboratory testing and potentially make shots.

6.
BioCryst Pharmaceuticals (NASDAQ: BCRX): It is developin a flu vaccine called peramivir.

7.Vical Inc (NASDAQ: VICL): The company has has completed the early-stage trials for its candidate in the prevention of H5N1 influenza virus.

8.Pure Bioscience (NASDAQ: PURE): The company manufactures Axen30, a disinfectant, that claims to kill the virus behind certain strains of influenza.

9.3M Co. (NYSE: MMM): In response to the swine flu outbreak, the company has stepped up worldwide production of respiratory masks.The company has seen a surge in demand from government agencies and hospitals worldwide

10.Alpha Pro Tech Ltd. (AMEX: APT): The company makes N-95 Particulate Respirator, a mask that protects and filters airborne pathogens and contamination.

11.Meridian Bioscience Inc (NASDAQ: VIVO) The company makes Tru Flu, a rapid test designed to make flu testing easier.

12.Quidel Corp.(NASDAQ: QDEL):The company makesQuickVue Influenza test that detects influenza type A and B viral antigens from a nasal swab or nasal wash specimen.

13.CVS Caremark (NYSE: CVS): The biggest U.S. drug-store chain has registered an increase in demand for drugs and facial masks.

14.Walgreen Co. (NYSE: WAG): The second largest drug-store chain recently anounced that face masks have sold out in some locations because of an outbreak of swine flu, prompting the company to make arrangements with additional suppliers.

15.Clorox Co. (NYSE: CLX): The company is making more bleach to meet growing demand for disinfectant amid swine flu outbreak.

16. Additionally, a report by Goldman Sachs points out that AstraZeneca, Novartis and Sanofi-Aventis also stand to gain from spillover effect.

LOSERS:

1.Continental Airlines (NYSE: CAL): Among U.S. carriers, Continental Airlines has the most flights to Mexico.

2.AMR Corp. (NYSE: AMR): Travelers have put off plans to favorite summer holiday destinations following concerns that swine flu could accelerate into a potential pandemic. This in turn is expected to hit not only AMR Corp., but almost all the major carriers.

3.Southwest Airlines (NYSE: LUV), United Airlines (NASDAQ: UAUA), Delta Airlines (NYSE: DAL), UAL Corporation (NASDAQ: UAUA), US Airways (NYSE: LCC): The reasons are obvious.

4.Carnival Cruise Lines (NYSE: CCL) The world's biggest cruise-line company has temporarily suspended port calls in Mexico as a result of the swine flu alert.

5.Royal Caribbean (NYSE: RCL): The out break of swine flu is expected to hit travel demand. The company may suffer a fall in revenue.

6.Marriott International (NYSE: MAR): Hotel industry will be the hardest hit if the situstion gets out of hand.

7.Starwood Hotels & Resorts Worldwide Inc. (NYSE: HOT): Starwood is expected to suffer as most travelers are canceling their travel plans.


Among other asset classes, dollar and yen are expected to gain amid safe haven buying while crude oil and gold are expected to remain lackluster amid swine flu fears.

Much of the performance of flu stocks (whether winners or losers) will ultimately depend on the severity of the outbreak. Nothing in this world is perfect. This list is only an indicative one. We invite our readers to contribute to it.

Disclosure: Author does not own any of the stocks discussed here.





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3 comments:

Anonymous said...

Why would people travel LESS on airlines due to flu ?

There is no cause for airlines to take a hit.

People will fly.

If anything - some people will WANT to fly the heck outta some places where there will be outbreaks.

I'm going Buffett style on this -

I bought into USAir today !

$5.50 a month ago - $3.85 now -

damn fine deal if you ask me.

Why would people FLY less ?

think about that - this is EASY money -

Anonymous said...

I guess USAir's lines to MExico JUSTIFIED 17% hit ?

I don't think so.

Market over-reaction - I'm testing Buffett's model - buy when everyone else is afraid !

Brian said...

Flu or no flu I would never buy Airline stocks. It is the worst business around. Apply common sense.

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