29 Oct 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
|TDOC||Teladoc||Digital Doctor Visits||+59.69%|
|ZM||Zoom Video||Digital Workforce||+273.62%|
|PETS||1-800-PetMeds||Online Pet Healthcare||+19.83%|
|CHWY||Chewy||Online Pet Shopping||+131.77%|
|CPB||Campbell Soup||Staples Food||+13.67%|
|JNJ||Johnson & Johnson||Staples Health||+15.88%|
|PG||Proctor & Gamble||Staples Health||+36.41%|
|EA||Electronic Arts||Video Games||+40.12%|
|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