Swine Flu Stock Picking Rewards Winners Handsomely

• By the tickerspy.com Staff
• On 10:34 am EST, Monday November 2, 2009

After a week in the red, select swine flu stocks pushed higher on Monday.

Last week Alpha Pro Tech (AMEX: APT - News) announced a 65% spike in third-quarter revenue, helped by a nearly 380% surge in N95 respirator mask sales in response to the H1N1 virus outbreak. Company president Al Millar said, "N-95 respirator mask sales are expected to continue to grow significantly in the fourth quarter from current levels and are expected to be substantially stronger for the foreseeable future." Today shares are trading higher by 5%.

A look at the Swine and Bird Flu Stocks Index's performance chart since the end of August shows that the sector has sold off sharply. However, select winners, Alpha Pro Tech included, have surged higher during the period.

In the last month, Pure Bioscience (NASDAQ: PURE - News) is the sector's top performer, up by over 25%. Its rally accelerated early in October when the company announced that its antimicrobial disinfectant was effective against swine flu.

Novavax (NASDAQ: NVAX - News), the sector's one-month runner-up, is up fractinoally today after announcing that its clinical stage seasonal flu vaccine met key goals in a midstage study. The stock has pared an earlier 2% gain.

On October 29, BioCryst Pharmaceuticals (NASDAQ: BCRX - News) reported a -$10 million loss in the third quarter, but investors are paying closer attention to developments surrounding its peramivir antiviral, which recently received emergency use authorization from the FDA. Investors are anxiously awaiting pricing information on the drug.

Large-cap swine flu players were mixed in October. GlaxoSmithKline (NYSE: GSK - News) and Novartis (NYSE: NVS - News) were both up by less than 5% for the period, while Gilead (NASDAQ: GILD - News) and Baxter International (NYSE: BAX - News) slipped with the market.

As of this writing, the Swine and Bird Flu Stocks Index is one of the 50 worst-performing Indexes over the last month, down by -4.6%. However, prudent stock pickers managed to secure gains for the period, and with swine flu spreading, the sector could be due for another pop.

Investors should also be aware of peripheral plays like Clorox (NYSE: CLX - News), which according to the Wall Street Journal, credits the H1N1 virus for a portion of its 23% earnings spike in the quarter ended September 30.

Fun and informative, tickerspy.com is a free investing website where you can track multiple stock portfolios and compare against 250 proprietary Indexes tracking themes from stem cells to green energy to precious metals. Best of all, tickerspy.com lets you spy on the portfolios of nearly 3,000 Wall Street institutions and hedge funds and see graphs of their performance. Try tickerspy.com today and find out how you stack up against investing legends like Warren Buffett!

Buzz up!