The pandemic outbreak of COVID-19 has completely reshaped the investment landscape. The world is divided into two types of stocks: those crashing from the sudden-stop recession pressure (most stocks), and those positioned to actually benefit from some dimension of this dramatic shift in context.
The beneficiaries have been largely discovered and driven higher already. But we see several possibilities of further gains as the crowd continues to seek out and drive the opportunities higher.
We present three interesting plays here that deserve immediate attention: CytoDyn Inc (OTCMKTS:CYDY), International Spirits & Wellness Holdings, Inc. (OTCMKTS:ISWH), and Blue Apron Holdings Inc (NYSE:APRN).
CytoDyn Inc (OTCMKTS:CYDY) just announced the three-day results post-leronlimab treatment of the first four patients under an Emergency Investigational New Drug (EIND) granted by the U.S. Food and Drug Administration (FDA).
According to the release, a total of seven patients have been enrolled thus far under EIND in the same leading medical center in the New York City area. The treatment with leronlimab is targeted as a therapy for patients who experience respiratory complications as a result of contracting SARS-CoV-2 causing the Coronavirus Disease 2019 (COVID-19). Leronlimab is believed to provide therapeutic benefit by enhancing the immune response while mitigating the “cytokine storm” that leads to morbidity and mortality in these patients.
CytoDyn Inc (OTCMKTS:CYDY) promulgates itself as a late-stage biotechnology company that focuses on the clinical development and commercialization of humanized monoclonal antibodies to treat human immunodeficiency virus (HIV) infection.
Its lead product is PRO 140, a therapeutic anti-viral agent, which is in Phase IIb extension study for HIV as monotherapy, rollover study for HIV as a combination therapy, Phase IIb/III investigative trial for HIV, Phase Ib/II trial for triple-negative breast cancer, and Phase II trial for graft-versus-host disease.
CytoDyn Inc. has strategic agreement with Samsung BioLogics Co. Ltd. for the clinical and commercial manufacturing of leronlimab. The company was formerly known as RexRay Corporation. CytoDyn Inc. was incorporated in 2002 and is based in Vancouver, Washington.
If you’re long this stock, then you’re liking how the stock has responded to the announcement. CYDY shares have been moving higher over the past week overall, pushing about 161% to the upside on above average trading volume.
CytoDyn Inc (OTCMKTS:CYDY) had no reported sales in its last quarterly financial data. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($1.2M against $29.7M, respectively).
International Spirits & Wellness Holdings, Inc. (OTCMKTS:ISWH) bills itself as a global brand management holdings company with diverse operational interests, including commercial-stage operations in the spirits, CBD, and home healthcare markets, and development-stage operations in the logistics and supply chain and renewable energy markets.
The company’s current growth prospects are driven by its home healthcare division, which has seen dramatic organic expansion over the past 3 quarters, and that momentum seems very likely to be accelerating thus far in 2020 due to the coronavirus pandemic outbreak – the company is seeing a surge in demand as traditional healthcare facilities prepare for overload.
International Spirits & Wellness Holdings, Inc. (OTCMKTS:ISWH) is also expanding: the company just announced that it is expanding outside of the state of Texas to as many as four other states, including a number of major population hubs (Las Vegas, Reno, Santa Fe, Phoenix, and The Villages). We wouldn’t be surprised to see the expansion continue to other areas with a similar profile.
The main point here is this: expect this to likely be the first in a series of developments that further expand upon this theme and the stock’s “brand” as a core coronavirus investment opportunity over the next 12 months at least. Since there are real revenues and operations – rather than just an empty promise or “plan” – should ultimately seed growing interest here as this theme continues to mature as a dominant preoccupation for the markets.
Given the seeming inevitability of a substantial coronavirus outbreak that could affect 20-40% of the US population, hospitals will be overburdened, and people will widely prefer to avoid traditional medical facilities for other health concerns to reduce the odds of infection. That opens the door for a boom in the home healthcare industry.
ISWH is one of the only
micro-caps in the publicly traded markets with a history of success in the home
healthcare space. And markets are likely underestimating the importance of this
theme as the conventional care system gradually slips toward the red zone in
terms of capacity demands.
Blue Apron Holdings Inc (NYSE:APRN) shares have been ripping higher over the past several weeks as more and more states and government authorities shift to a shelter-at-home strategy to drive results in the battle against the COVID-19 outbreak.
The company promulgates itself as a company that operates direct-to-consumer platform that delivers original recipes, and fresh and seasonal ingredients. It also operates Blue Apron Market, an e-commerce market that provides cooking tools, utensils, pantry items, and other products.
In addition, the company offers Blue Apron Wine, a direct-to-consumer wine delivery service that sells wines, which can be paired with its meals; and supplies poultry, beef, and lamb. It serves college graduates, young couples, families, singles, and empty nesters.
The company offers its services through order selections on Website or mobile application primarily in the United States.
And the stock has been acting well over recent days, up something like 16% in that time. Blue Apron Holdings Inc (NYSE:APRN) pulled in sales of $94.3M in its last reported quarterly financials, representing top line growth of -33%. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($43.5M against $60.5M, respectively).