The Mexican flu has the world in his grip. In less than one week. Now, that’s fast. Governments are checking their stockpiles of vaccines. Most of them are stocking Tamiflu (Roche).
But in Australia there is a very small biotech company that has a share in the other drug from competitor GlaxosmithKline: Relenza.
If we may believe the reports, the drug is very effective, but… There are some inconveniences that make it difficult to market. The most important is that the drug only works in the very first phase of an influenza infection. And that point is very difficult to determine. What is a cold, an allergy or the start of swine flu?
The stock jumped 60% today in Australia. Biota has a market cap of 250 mln AUD and 60 mln AUD cash and equivalents.
So if you believe in a global catastrophe, this is your pick…
Or you can look to Deutsche Bank Agriculture short ETN (ticker: ADZ) or to AGA and BOM where a flavor of leverage is added.
More, losers for the moment are airline stocks, tour operators and animal breeders.
From Dennis (the Menace) Gartman, we learn:
This is over-reaction of the very first order, for “swine flu” does not affect livestock; it does not render livestock production useless; it should not result in massive liquidation of the livestock herd… but that does not matter at the moment. At the moment the specs are liquidating livestock and grain, and the margin clerks have the pencils sharpened and their sell orders in hand. For the moment, nothing else… not even rationality… means anything. Panic, rather than reason, have swept through the markets and are having their way with them.
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But in Australia there is a very small biotech company that has a share in the other drug from competitor GlaxosmithKline: Relenza.
If we may believe the reports, the drug is very effective, but… There are some inconveniences that make it difficult to market. The most important is that the drug only works in the very first phase of an influenza infection. And that point is very difficult to determine. What is a cold, an allergy or the start of swine flu?
The stock jumped 60% today in Australia. Biota has a market cap of 250 mln AUD and 60 mln AUD cash and equivalents.
So if you believe in a global catastrophe, this is your pick…
Or you can look to Deutsche Bank Agriculture short ETN (ticker: ADZ) or to AGA and BOM where a flavor of leverage is added.
More, losers for the moment are airline stocks, tour operators and animal breeders.
From Dennis (the Menace) Gartman, we learn:
This is over-reaction of the very first order, for “swine flu” does not affect livestock; it does not render livestock production useless; it should not result in massive liquidation of the livestock herd… but that does not matter at the moment. At the moment the specs are liquidating livestock and grain, and the margin clerks have the pencils sharpened and their sell orders in hand. For the moment, nothing else… not even rationality… means anything. Panic, rather than reason, have swept through the markets and are having their way with them.
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