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The Pandemic Portfolio – Update 6

In the last week, we have seen spiking virus cases around the world. Some countries are now at record levels, even higher than when the outbreak began, and have once more imposed lockdown measures.

France is in full lockdown. Germany is also locked down but with less severe restrictions. Parts of Britain are in lockdown and parts of America are tightening restrictions.

This has caused stock markets, particularly in the US and Europe to tumble. The economically sensitive sectors have been hit hardest, airlines and cruise ships have been sold heavily.

Investors are thinking a second wave in the northern hemisphere winter will delay any re-opening of traditional business. But every cloud has a silver lining and for stocks that lining comes from digital businesses that benefit from a locked down state.

Now would be a good time to revisit our pandemic portfolio and consider adding any of these names.

With the exception of Gilead Sciences (GILD) – more on that below

Below is the performance of each stock since we first recommended them on March 25th

Ticker Company Industry Gain/loss
CLX Clorox Bleach/Wipes +26.69%
GILD Gilead Corona Treatments -15.70%
REGN Regeneron Corona Treatments +31.94%
TDOC Teladoc Digital Doctor Visits +59.69%
WORK Slack Digital Workforce +2.70%
ZM Zoom Video Digital Workforce +273.62%
PTON Peleton Home Exercise +398.04%
CHGG Chegg Online Education +123.83%
TWTR Twitter Online News +86.87%
PETS 1-800-PetMeds Online Pet Healthcare +19.83%
CHWY Chewy Online Pet Shopping +131.77%
AMZN Amazon Online Shopping +67.71%
FB Facebook Social +71.35%
CPB Campbell Soup Staples Food +13.67%
HRL Hormel Staples Food +15.93%
JNJ Johnson & Johnson Staples Health +15.88%
PG Proctor & Gamble Staples Health +36.41%
NFLX Netflix Streaming Content +42.01%
ATVI Activision Video Games +49.44%
EA Electronic Arts Video Games +40.12%
TTWO Take-Two Video Games +49.83%
AKAM Akami Tech Internet Infrastructure +9.01%
ELY Callaway Golf <10 person leisure +54.95%
HD Home Depot Home Improvement +48.39%

The average gain for this group is +68%. A phenomenal result so far.

Gilead (GILD) now appears unlikely to profit from COVID and can be ignored.

But there are other names we can add to this list.

Align Technology (ALGN). The makers of invisalign clear plastic teeth aligners reported massive results. Profits were up 50% year over year as people used isolation time to fix their teeth without others seeing. This company has a very interesting inventory method of using 3D printing. It is actually one of our favorites for massive future growth.

Etsy (ETSY) is similar to Ebay and supporting small mum and dad retailers online.

Logitech (LOGI) makes computer hardware, especially popular with gamers which should see another boost while people are locked at home.

DraftKings (DKNG). Online gambling. Might be a bit expensive here though. What else is a grown man to do when locked inside all day?

You can read prior updates to this portfolio at these below links

The Pandemic Portfolio

The Pandemic Portfolio – Update

The Pandemic Portfolio – Update 2

The Pandemic Portfolio – Update 3

The Pandemic Portfolio – Update 4

The Pandemic Portfolio – Update 5

Disclaimer: Capital 19 Pty Ltd ABN 17 124 264 366 AFSL 441891 (‘Capital 19’) believes the information contained is reliable, however, no warranty is given as to its accuracy and persons relying on this information do so at their own risk. This communication is for general information only and was prepared for multiple distributions and does not take account of the specific investment objectives of individual recipients and it may not be appropriate in all circumstances. Persons relying on this information should do so considering their specific investment objectives and financial situations. Any person considering action based on this communication must seek individual advice relevant to their circumstances and investment objectives. Subject to any liability which cannot be excluded under the relevant laws. Any opinions or forecasts reflect the judgment and assumptions of Capital 19 and its representatives based on information at the date of publication and may later change without notice. Any projections contained in this presentation are estimates only and may not be realised in the future. The investment manager certifies that all the views expressed in this document accurately reflect their views about the companies and securities referred to in this document and that their remuneration is not directly or indirectly related to the views. Capital 19, its directors, representatives, employees or related parties may have an interest in any of the companies and securities in this document and may earn revenue from the sale or purchase of any financial product referred to in this document or any advice. Past performance is not a reliable indicator of future performance. Unauthorised use, copying, distribution, replication, posting, transmitting, publication, display, or reproduction in whole or in part of the information contained in this document is prohibited without obtaining prior written permission from Capital 19.
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