You have been reading about the frenzy which media attention has brought to the companies involved in the battle against Ebola. The wall-to-wall coverage has driven the prices for these stocks sky-high. In the midst of the media hysteria, it is important for investors to proceed with due diligence before investing in any of these stocks. The market has been playing a game of “musical chairs” among the various biotech companies that show promise for addressing some aspect of the epidemic. One day’s “hot stock” is in the next day’s trash heap.
Many
investors following the Ebola crisis have been focusing on hazardous
materials (HazMat) suits, which are in ever-increasing demand for the
workers who are responsible for cleaning potentially contaminated areas.
The most popular stock in this area has been Lakeland Industries (LAKE),
which has seen its share price skyrocket from $6.25 on September 10 to
$17.72 on October 9. Skeptical commentators have focused on the stock’s
unimpressive track record. Nevertheless, in the current environment, the
past is completely irrelevant. The really important question concerns
whether Lakeland’s suits will find demand from the front lines in the
Ebola battle, as opposed to demand from would-be shareholders. (more)Please share this article
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