The COVID Competitors

We just completed our analysis of the leaders in the race to produce a COVID-Corona virus vaccine. We limited our scope to companies that have vaccine candidates in at least Phase I trials, are actively traded in US securities markets, and whose data and performance history is readily accessible.

As is our usual custom, we focused on the stocks' suitability for inclusion in portfolios based on the portfolio owner's

  • Risk tolerance or aversion,

  • Liquidity and marketability preferences,

  • Growth or preservation attitude,:

  • Desire or need for portfolio income,

  • Goals and objectives (and their timelines)

  • Investment style comforts and discomforts.

We assess the security's along several vectors:

  • Market risk exposure,

  • Volatility,

  • Product lines and innovation,

  • Political exposure,

  • International and currency fluctuation,

  • Management and governance,

  • Public perception,

  • Known or anticipated legal exposure, and

  • Liquidity, solvency, and leverage.

And we analyse the security's fundamentals and technical performance in both the short and long term. [*1]

To say the COVID vaccine contenders are a mixed bag understates the case a bit:

The contenders range from

  • Household names like Johnson and Johnson (JNJ) and Pfizer (PFE) to a company practically no one had heard of until March this year (Moderna, mRNA, which has been listed for less than two years),

  • Companies with long-term steady profitability, market history, and dependable dividends to one that has not generated an annual profit for at least ten years,

  • Companies whose continued viability probably depends on a COVID vaccine success [Moderna (mRNA) and Novavax (NVAX)] to companies who probably view COVID success as more a public relations triumph than a necessity (although they will be glad for the profit boost, thank you) [Astrazenica (AZN), JNJ, and PFE]

  • Companies whose stock price has remained stable after initiating COVID tests to two companies whose stock appreciated by 400% and 4,000% after announcing Phase I trials,

  • Companies we would recommend in a heartbeat to companies we wouldn't touch on a bet.

The one thing all the companies had in common: each of them has one or more COVID vaccines in Phase I or higher testing protocols. mRNA has a Phase III study in progress, two other companies have Phase II-III tests slated for early September.

So, what is our prognosis? You'll have to give us a call or email for that. Steven@StevenRoyManagement.Com 0r [818] 489-4228 or request it through our website

[^1] We are happy to provide a copy of our suitability matrix, there is a PDF version on our website. If you want a "fillable" version (Excel Format) call or Email us or request it through the Contact page on our website

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