The U.S. may have reopened too quickly.
In fact, according to former US FDA Commissioner, Dr. Scott Gottlieb, some states may be “on the cusp of losing control.”
Should that happen, we could see some states close up shop yet again.
Worse, the virus is still infecting about 20,000 people in the U.S. every day. “The question is ‘can we keep this from getting out of control.’ This is a virus that wants to infect a very large portion of the population,” Gottlieb told CNBC. “They’re on the cusp of losing control of those outbreaks in certain parts of those states. Arizona, Houston, Austin, parts of Florida certainly look very concerning right now.”
That being the case, we’re likely to see explosive demand for more face masks, which is great news for stocks like 3M (MMM) and Alpha Pro Tech (APT). APT for example did very well with mask sales during the first outbreak.
Lloyd Hoffman, President and CEO of Alpha Pro Tech, commented, “The unprecedented surge in demand for our personal protective equipment, otherwise known as PPE, resulting from the outbreak of the coronavirus, COVID-19, particularly our N-95 Particulate Respirator face mask and face shields, drove quarterly sales and significantly higher gross profit for the first quarter.”
Vaccine stocks, like Moderna (MRNA) should continue to do well, too.
“Moderna has finalized the Phase 3 study protocol based on feedback from the U.S. Food and Drug Administration (FDA). The randomized, 1:1 placebo-controlled trial is expected to include approximately 30,000 participants enrolled in the U.S. and is expected to be conducted in collaboration with the National Institute of Allergy and Infectious Diseases (NIAID), part of the National Institutes of Health (NIH).