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Steve Harmon - Which Stocks Could Benefit From The New (Ab)Normal?

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What Are The Public Stocks Worth Looking At In This Pandemic?
 

Steve Harmon

June 29 · Issue #31 · View online
Beyond the hype, inside the world of venture capital, tech, stocks and trends, from Silicon Valley to Shanghai, from veteran investor and entrepreneur Steve Harmon - followed by many leaders in finance and tech, see more: http://steveharmon.com

What Are The Public Stocks Worth Looking At In This Pandemic?

In the days following September 11 I recommended stocks such as baggage x-ray, security and others. In the ensuing years many of those companies were acquired by larger ones including GE, etc.
Today we’re faced with a different crisis, an ongoing global pandemic. The question we have to ask: is this a passing crisis or a new (ab)normal?
Just over 100 years ago the Spanish Flu hit the world and came in 3 waves: 1) shock 2) anger 3) resignation. When it first hot governments locked down populace. They got tired of wearing masks and revolted at some point and the virus exploded. They then put masks back on and the virus waned.
Is It The Same This Time Around?
Whether the Wuhan coronavirus and the disease Covid-19 sticks around or fades as a result of a vaccine and/or herd immunity or some other reason nobody yet knows.
What we do know is the public is now accustomed to living in a much ‘cleaner’ world.
Back when I was a kid my brother was acutely aware of germs and perhaps way ahead of his time. Doorknobs, handles, tables, carts, sneezes and such were objects he pointed out as being 'nasty.’
Many of these items are identified by public health officials as breeding grounds for germs.
What Has & Perhaps Will Change
Public spaces. Shared spaces. Work spaces. Home spaces. Pretty much every space, even nature or the outdoors.
Sheltering: A lot of these have had big runs but they look like the new normal–
Amazon (AMZN) home shopping king, plus video and alexa
Netflix (NFLX) home watching king
Disney (DIS) owns a lot of media such as Marvel, Lucas, etc. for streaming
Spotify (SPOT) music streaming king
Sony (SNE) video games, TVs
Nintendo (NTDOY) video games
Distancing: people want to be outside, remember that place? Also, home gyms
Camping World (CWH) sells a lot of outdoor gear
Big 5 Sporting Goods (BGFV) ditto
Dicks Sporting Goods (DKS) double ditto
Shielding: things that block air
3M (MMM) mask king and tape maker
Dow (DOW) maker of acrylics (the clear plastic glass), one of many that could benefit from plexiglass between tables, cash registers and customers and even more places (like cubicles and offices)
Tracking:
Apple (AAPL)
Google (GOOG)
Treating: Big pharma, sorted by revenue –
  • Novartis (NVS) — $47.45 billion.
  • Merck (MRK) — $46.84 billion.
  • GlaxoSmithKline (GSK) — $43.54 billion.
  • Johnson & Johnson (JNJ) — $42.1 billion.
  • AbbVie (ABBV) — $33.27 billion.
  • Sanofi (SNY) — $27.77 billion.
  • Bristol-Myers Squibb (BMY) — $26.15 billion.
  • AstraZeneca (AZN) — $23.57 billion.
Preventing: cleaners and sanitizers
Proctor & Gamble (PG)
Unilever (UL)
Johnson & Johnson (JNJ)
Colgate-Palmolive (CL)
Home office/work from home: a large percentage of info workers may end up working at home
Google
Microsoft (MSFT)
Slack (WORK) remote teams
Dropbox (DBX)
Apple (AAPL)
Docusign (DOCU) digital signing
Crowdstrike (CRWD) endpoint security networking
Cloudflare (NET) bandwidth on demand
Zoom (ZM) conferencing (maybe overhyped)
Comcast (CMSCA) broadband provider
Charter (CHTR) broadband provider
CenturyLink (CTL) broadband provider
The overall impression I have after looking at all of these is that there are several new and better solutions to come that address many of these sectors. A lot of these stocks look overpriced and frothy.
The real action, to me, looks like in private companies …
Companies that re-draw the lines. Remake the rules. Reimagine services and solutions.
As you know, I am working on one, a new way to do real estate that is mostly virtual and digital, mostly contactless, Ditto. It takes aim at the $90 billion real estate market here in the US. We began building it before the pandemic and the timing seems to be good.
For accredited investors you can contact me for our plans. We are currently in discussion with investors globally.

welcome to the new world…

regards and stay well,

steve
steveharmon@gmail.com
fb.com/steveharmon
steveharmon.com



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