Stocks to Watch - H5N1 Captain Trips?
As distasteful as this sounds, should the H5N1 Asian Bird Flu spread, and a large number of fowl and swine get wiped out (140 million fowl worldwide already and counting), there will be an increased need for vaccines, antibiotics, medicine, eggs, chicken, duck, turkey, goose and pig meat.
The supply will have to come from somewhere, stocks to watch are:
Medicine & Vaccine's
SNY - Sanofi - Aventis, (France) largest vaccine maker in the world and one of two contracted by US Government to find and/or produce a vaccine.
CHIR - Chiron - the other company contracted, but can't seem to get out of their own way.
GILD - Gilead - patent holder on TAMIFLU, only semi effective antibiotic against bird flu. (Donald Rumsfeld was chairman and still holds $3Million in stock. Hello...)
RHHBY - Roche - exclusive license to distribute TAMIFLU worldwide, just got 20 million orders from various governments around the world.
IDBE - ID Biomedical (Canada), largest vaccine maker in North America.
SVA - Sinovac Biotech, (China), only company with a SARS vaccine phase II and working on Avian flu vaccine, they are a Chinese government front.
Meat and Eggs
CALM - Cal Maine Foods, largest listed egg producer in the US.
GKIS - GoldKist - poultry processor.
SAFM - Sanderson Farms - poutry processor.
CGLA - Cagles - poultry processor.
TSN - Tyson - same as above, but they do beef and pork too, more balance.
IBA - Industrias Bachoco - a Mexican version of Tyson.
PDA - Perdigao - a Brazilian version of Tyson.
SDA - Sadia - another Brazilian version of Tyson.
PPC - Pilgrims Pride - same as above, but they concentrate on prepared foods, rather than the raw birds themselves, higher profit margins and will hold up better if corn & soya (chicken feed) costs go up.
Food Plays
CAG - ConAgra - the kings of prepared foods worldwide, pays a 4.9% divident and is near a 52 week low, a REAL STEAL at 22.60 a share, spiked on higher volume the last 3 days probably due to Katrina.
ADM - Archer, Daniels, Midland - they help feed the world, pays a 1.43% divident and is currently trading at a premium, spiked on high volume the last 3 days, also due to Katrina.
So far, higher volume spikes in the last 7 - 20 trading days have been in CALM, SVA, IDBE, SDA, CAG, ADM and CHIR. In my opinion, excepting ADM these are the best plays for entry price and potential upside.
The supply will have to come from somewhere, stocks to watch are:
Medicine & Vaccine's
SNY - Sanofi - Aventis, (France) largest vaccine maker in the world and one of two contracted by US Government to find and/or produce a vaccine.
CHIR - Chiron - the other company contracted, but can't seem to get out of their own way.
GILD - Gilead - patent holder on TAMIFLU, only semi effective antibiotic against bird flu. (Donald Rumsfeld was chairman and still holds $3Million in stock. Hello...)
RHHBY - Roche - exclusive license to distribute TAMIFLU worldwide, just got 20 million orders from various governments around the world.
IDBE - ID Biomedical (Canada), largest vaccine maker in North America.
SVA - Sinovac Biotech, (China), only company with a SARS vaccine phase II and working on Avian flu vaccine, they are a Chinese government front.
Meat and Eggs
CALM - Cal Maine Foods, largest listed egg producer in the US.
GKIS - GoldKist - poultry processor.
SAFM - Sanderson Farms - poutry processor.
CGLA - Cagles - poultry processor.
TSN - Tyson - same as above, but they do beef and pork too, more balance.
IBA - Industrias Bachoco - a Mexican version of Tyson.
PDA - Perdigao - a Brazilian version of Tyson.
SDA - Sadia - another Brazilian version of Tyson.
PPC - Pilgrims Pride - same as above, but they concentrate on prepared foods, rather than the raw birds themselves, higher profit margins and will hold up better if corn & soya (chicken feed) costs go up.
Food Plays
CAG - ConAgra - the kings of prepared foods worldwide, pays a 4.9% divident and is near a 52 week low, a REAL STEAL at 22.60 a share, spiked on higher volume the last 3 days probably due to Katrina.
ADM - Archer, Daniels, Midland - they help feed the world, pays a 1.43% divident and is currently trading at a premium, spiked on high volume the last 3 days, also due to Katrina.
So far, higher volume spikes in the last 7 - 20 trading days have been in CALM, SVA, IDBE, SDA, CAG, ADM and CHIR. In my opinion, excepting ADM these are the best plays for entry price and potential upside.
Comments