There are many investing plays that are attractive to serious investors and small-cap opportunists in the current market, but coronavirus movements take the cake.
We’ve noted that each sector has its share of positive opportunities for both long-term and short-term investors. Energy investors are figuring out whose making it through a troubled market, cannabis investors are weeding out the best business models, and metals and mining investors see rising prices and companies waiting for the green light.
But while the Stockhouse Bullboards have seen healthy interest across all sectors recently, the overwhelming majority has been on healthcare plays that are dealing with the COVID-19 coronavirus here and now. Here’s a look at the three companies leading the charge and how their prospect look.
The name of the healthcare game right now is COVID-19, and more specifically, testing. Plays in treatments and vaccines will pick up over time, but the need for testing is immediate and making money for investors today. Last week, the top companies on the Stockhouse Bullboards were testing companies, with
StageZero Life Sciences Ltd. (
TSX:SZLS,
Forum) leading the healthcare sector. SZLS saw a surge two weeks ago, and recently it climbed again from $0.11 on Apr. 28 to $0.145 on May 4.
StageZero began to look into offering COVID-19 testing in the US and Canada late in March, and now it is starting to roll them out and seeing shares rise alongside. Back on Apr. 20 the company announced that it
had initiated testing, giving it the initial surge. On May 1, it followed up with an
update on testing highlighting initial orders, interest in excess of 250,000 tests, and test pricing.
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When the initial news about COVID-19 testing from StageZero began, there was a fair amount of skepticism on the SZLS Bullboard. As with other companies that had announced their entry into the market, investors were wary for promise without substance, but over time the company’s performance and progression has convinced many that were skeptical. Stockhouse Member
SAGDollar put it best that long-term SZLS investors are seeing a company that has learned from the past.
“...There is so much to come with the Aristotle [cancer test], and our COVID-19 testing seems to be running smoothly, Smoother than I initially expected. It's really restored some faith for me in JHT and SZLS as a company with the insight, drive, and just overall hustle. They are hungry, remember Jimmy's 30 M forecast last year? He wouldn't say that for nothing. Things are coming, just his excitement got the best of him last year... and it did hurt investor confidence… it's all in the works and already happening.”
(Post: It's such an anomaly)
Hot on StageZero’s tail in the race for COVID-19 tests is
MedMira Inc. (
TSX-V:MIR,
Forum). The biotech company specializes in antibody testing for HIV and herpes, and only recently entered the field for COVID-19 testing in mid-April. Since then, MIR has taken off, from $0.035 on Apr. 14 to a high of $0.355 on May 4.
The first surge from $0.035 to $0.11 came following the company’s Apr. 15 announcement that it had developed a
point-of-care antibody test for COVID-19. It was a big boost, but shares quickly started to retreat while investors waited to see when the tests would start heading to market. The answer came on Apr. 23, when MedMira announced it had
submitted for emergency use authorization from the FDA, with a further boost from a Tennessee-based company
marketing the tests in the US in response to the White House Coronavirus Task Force.
Unlike SZLS above, the MIR Bullboard is still dealing with the early part of the news cycle and before testing has started or been confirmed. While the company’s testing kits have previously been approved and vetted for other uses, investors are watching other companies receiving approval/rejection for testing around and wondering what MIR’s fate will be. From the information available so far highlighted by Stockhouse Member
Amon786, the company’s chances look more positive than not.
“When comparing the RevealCOVID-19 antibody test to MedMira's REVEAL G4 RAPID HIV-1 antibody test, [CEO] Hermes Chan said: ‘The only different thing in there is the type of antigens that we place on our test cartridge. Everything else is the same and that's why we can actually develop this particular test in such a fast time.’
From this statement, we can infer that the sensitivity and specificity of the Covid-19 and HIV-1 antibody tests will be similar. The overall performance of the REVEAL G4 HIV-1 antibody test is: Fingerstick (99.64% sensitivity and 99.71% specificity) and for Venipuncture (99.46% sensitivity and 99.90% specificity).”
(Post: RE:Sensitivity/specificity?)
Last week’s most-viewed coronavirus testing company, however, isn’t even in the healthcare sector.
DataMetrex AI Ltd. (
TSX-V:DM,
Forum), the AI data company that
turned into a COVID-19 test importer overnight, has been on the top of the Stockhouse Bullboards for three weeks and is well on the way to continuing that run. After shares of DM initially jumped on Apr. 16 from $0.055 to $0.185, they’ve recently hovered around $0.16, before a May 6 announcement and
25% jump to $0.20.
Before yesterday’s announcement, DataMetrex had been pretty quiet. On Apr. 21 the company announced
details about its submission to Health Canada for fast-track approval and added some key personnel to its advisory board, but otherwise the only updates were
new installations to the
board of directors. On May 6, however, DataMetrex announced it had
acquired the rights to sell COVID-19 tests from two additional South Korean manufacturers, including tests already approved in the US and Europe.
The announcement came following a one-day halt which had many on the DM Bullboard anxious, and though the latest news isn’t the much-awaited Health Canada approval, it’s a massive boon in that direction. While opinions varied from “imminent” to “not a chance” on DataMetrex receiving approval to sell tests in Canada, Stockhouse Members like
karloss pointed out that even if the company had a poor revenue-sharing model for importing the tests, it was benefiting either way.
“I don't know why or how they could make a lot of money being just a facilitator with the COVID-19 tests but any commission they make will be easy money to use in their core business. What is sure is that it will put DM on the radar and will probably bring some new money and exposure to the company. Now they need to execute and ride that big wave!”
(Post: RE:The Important Question)
While coronavirus-related plays continue to outperform and entice investors, the general markets have also performed well over the past few weeks. Easing COVID-19 restrictions, demand starting to pick back up, and economic data that hasn’t been as bad as anticipated (so far) seems to have turned the tide positive, but many remain skeptical that we’re in the clear. The latest Investor Pulse Poll on the Stockhouse homepage asks this exact question, and so far the overwhelming response is expecting more uncertainty down the line.
Since each week has brought with it clarity to some degree, we’re going to keep the poll open and see if the results become more pronounced or start to swing back. That also means that it’s not too late to add your voice and opinion, so head over to
Stockhouse homepage or click the image below to cast your vote!
(Click image to go to the poll)
The story changes every week for the markets, for small-cap investors, and on the Stockhouse Bullboards. Whether next week brings with it a rising new coronavirus-related play, a sudden opportunity for an energy bounce back, or something completely out of left field, we’ll have you covered, so stay updated, stay safe, and stay tuned. For previous editions:
click here.