What’s up everybody, it’s your favorite stock market commentator. The bearded boy wonder, Dave Bartosiak back at it for the first time in a very long time. Welcome to Trending Stocks!
There’s nothing quite as trendy as an epidemic. Before the days of Google Trends, we were all going to die of AIDS. Guess what, survival. Magic. Fast forward to 2003. The huddled, terrified masses, wrapping their faces up in masks to fight SARS. Then 2014, somebody dusted off their DVD collection, popped in Outbreak, and the whole market was freaking out about Ebola. The panic du jour now, coronavirus.
And no, not related to the Irish Flu you and your buds got down in Cancun after polishing off several buckets of Constellation Brands’ STZ Coronas during that dark weekend your friends promised not to talk about ever again. If you know what I mean, smash that like button.
I know I’m making light of a very serious situation. And I’m not here to mock anybody unfortunate enough to contract the virus. I’m here to point out the lunacy in traders chasing this thing.
What do I mean? Enter Novavax NVAX. This Zacks Rank #4 (Sell) was up 71% on Tuesday January 21st. That’s right, 71% for a stock set to lose $1.08 this quarter. It has more than doubled since January 15th. It’s up because of a potential vaccine it’s making for the virus.
Then there’s Lakeland Industries LAKE. This thing was up 25% yesterday because they make full body hazmat suits. Unless they do a collab with Gucci or Fendi, I don’t think rocking full body hazmats is going to catch on that well. That’s another Zacks Rank #4 (Sell) going nuts on the news.
At least Alpha Pro Tech APT makes masks. Much more fashionable, practical, and something people genuinely buy when there’s a breakout of these events. That stock surged 38.5% as well. A billion plus people buying masks in a huge opportunity for big bucks. Not like these are experimental masks they have yet to develop.
Not here to hate. Get your duckets buddy. If you can catch a move in a stock like that, you catch that move and don’t look back. Just don’t get caught falling in love with, thing. It will do you wrong. It will go down. Don’t be the guy at the watercooler talking about how this vaccine is going to be the second coming.
If you want to speculate on the future, look no further than the past. Look for stocks that went crazy during the Ebola scare. Look more carefully now. See how they pop up then suddenly collapse quicker than Mitch Trubisky’s career. It’s fun to mess with these things, but when you get stuck holding the bag, you lose a lot of money. All of the money. Be careful out there.
Every time you hit the like button, an infected lab monkey is contained in his cell. Subscribe to the channel, Twitter and StockTwits @bartosiastics, and come back for the next episode of Trending Stocks.
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