Posted on Wednesday, 11th November 2009 by admin
For the past 3 or 4 months, the world has stopped turning and only talks about the H1N1 (aka the Swine Flu). I’m not here to discuss whether we should get concerned or not about the H1N1. I’m here to size an opportunity. If everybody talks about H1N1, there must be a few stocks that will show some significant gains if the virus keeps hitting the globe.
H1N1 Stocks list (1yr return is as of November 11th 2009 according to Bloomberg):
Roche (NYMEX: RHHBY) (1yr return: 18.30%)
Roche is the maker of the Tamiflu. This is the first drug combating the H1N1. Since is well known in the pharmaceutical environment (ADR soared a few years ago when we had the SARS coming our way), the stock already surged. However, it doesn’t mean it won’t go up again if the H1N1 death keeps rising!
GlaxcoSmithKline (NYMEX: GSK) (1yr return: 14.10%)
This is another vaccine maker (Relenza). GSK is a major H1N1 vaccine supplier for Mexico and Canada. This should be a great years for this company too.
CSL Limited (ASX: CSL)
CLS limited is an Australian company which was one of the first to create a vaccine against the H1N1.
Johnson and Johnson (NYMEX: JNJ) (1yr return: 5.18%)
I would personally put my $5 on JNJ. What is the link between H1N1 and this stock? They are the marketer of the famous Purell! Regardless if the H1N1 flu is revealed to be dreadful, the usage of Purell will only grow during the upcoming years. This may become one of the best products among JNJ. Since I already like the stocks for its diversification (products and markets) and its consistent dividend, I think JNJ is a stock to be held in your portfolio.
Other H1N1 Stocks to consider (linked to the H1N1 vaccine):
BioCryst Pharmaceuticals Inc. (BCRX)
Novavax, Inc. (NVAX)
Hemispherx Biopharma, Inc. (HEB)
Sinovac Biotech Ltd. (SVA)
Vical Inc. (VICL)
Inovio Biomedical Corporation (INO)
CEL-SCI Corp. (CVM)
Generex Biotechnology Corp. (GNBT)
image source: chrisstreeter