The Wuhan coronavirus is only getting worse, and the experts say that you ain’t seen nothin’ yet. Although there is a lot still unknown about the strain, the consensus is that it will likely intensify or potentially mutate in April and May when the conditions are perfect for such a virus.
These fears are triggering a massive selloff in global financial markets and sending investors into the premier safe-haven alternative: gold.
But if you are more than a gold bug and are diversified then there are many buying opportunities to take advantage of before the economic collapse.
Here are just a few of the stock buying opportunities:
1. Freeport McMoRan
The copper market is facing a supply deficit as some estimates peg the figure at 700,000 tons. With demand possibly increasing this year (even if there is a downturn the governments will unleash stimulus projects that will boost demand for the industrial metal), some projects say copper could top $3 a pound this year. One of the biggest producers is Freeport McMoRan, which fell seven percent on Monday is trading around $11. It has a healthy dividend, too.
2. Yum China
China is becoming known as a huge market for fast-food, which explains the growing obesity rates in the world’s second-largest economy. Yum China has dropped ten percent from its 52-week high of $53. You can now get it for around $42 a share, plus a modest 1.1% dividend yield.
3. Alpha Pro Tech
If you are betting on the coronavirus worsening over the next few months, then Alpha Pro Tech could be the stock for you. It produces face masks, which have been selling like hot cakes all over the world. Although the stock has surged 130 percent over the last week to $7.50, there is potential for greater returns should the virus kill more people and spread to other countries.
4. Abbvie
From Reuters:
China is testing an HIV drug as a treatment for symptoms of the new coronavirus that is rapidly spreading, said drugmaker AbbVie Inc on Sunday.
China health authorities requested the drug to help with the government’s efforts to address the crisis, according to Adelle Infante, a spokeswoman for North Chicago, Illinois-based AbbVie.
Aluvia, which is also known as Kaletra, is a combination of lopinavir and ritonavir.
In guidance published on Thursday, the government said there is no effective anti-virus medicine but suggested taking two lopinavir/ritonavir pills and inhaling a dose of nebulized alpha-interferon twice a day.
AbbVie is the one that manufactures this drug. So, is this a buying opportunity? So far, the stock is up just one percent to under $85, but if Beijing orders huge inventories of the drug, then this could be a hidden gem.
5. USO
Crude oil is officially in a bear market (again), so this could be a good time to try to get your foot in the Texas Tea door if you haven’t already. The United States Oil Fund (USO) exchange-traded fund (ETF) “seeks to reflect the performance of the spot price of West Texas Intermediate light, sweet crude oil delivered to Cushing, Oklahoma by investing in a mix of Oil Futures Contracts and Other Oil Interests..”
It cratered 3.5 percent on Monday to $11.
If you have any suggestions, please share it in the comments section below!
Leave a Comment