Thursday, March 19, 2020

CORONAVIRUS STOCK OPPORTUNITIES


Over the past couple of weeks, we have seen an unprecedented shake up on Wall Street.  Whole sectors, like restaurants and airlines, implode.   The world changed when the decade began.  Completely.

This is the cleaning product isle at a Target in Seattle.  Need I say more?

The next isle with the toilet paper was also empty.


There is a huge sense of panic that resulted in enormous swings.  Up 25 one moment, down 30 the next.  Kind of like my college football team, the Washington State Cougars...

I am on the side of holding on and riding this thing out.  If I had sold once it cratered, my paper losses would become real cash loss.  Future buying power would be 20% lower than before.  I'd rather keep my current cost basis. 

But not all is bleak.  There are some opportunities out there that are sort of immune to the pandemic.  
When the market crashed, many investors cashed out and went into hiding, opening up some opportunities 

 So I've been looking at companies that have minimal impact from this pandemic, as well as some that seem to be able to take the body blows of this instant recession. 


AT&T (T)

Since the new fad activity here is social distancing, people are hunkering down, going online, and binge watching. 

AT&T has taken a hit and dropped to the $31 dollar range.  Their current dividend rate is a whopping 6.33% at the time of this writing.  I would not be surprised if the stock hits 29 or 28 soon and then begin a slow climb back.

The debit is a bit high.  But they are not going anywhere.

People are still using their phones. Most likely more than ever to stay in touch.  I feel that T is a great opportunity.  Once I have some more money to invest, I think I will pick up a few shares


HORMEL FOODS (HRL)

With nothing open  (I'm in Seattle), people are avoiding restaurants and staying home with the groceries they hoarded.  This is where Hormel can be a great opportunity.

One thing that will help them ride this out is the fact that they have low debt.

Not a big dividend at 1.93%, but they are a Dividend Aristocrat.  It will be be a good place to start up a position and let them raise that dividend like they have for many years.


KIMBERLY CLARK (KMB)

A major player in Consumer Staples, KMB is in a good position to rake in the dough while America hoards 25 years of toilet paper.   They make Cottonelle, Wondersoft, Viva towels, Scott towels, and Kleenex.   Their dividend is currently at 3.19%


PROCTOR & GAMBLE (PG)

Another Consumer Staple giant.  The maker of Tide, Cheer, Downy, Bounce, Charmin, Bounty towels, Gillette, Comet, Cascade, Crest, Ivory, Old Spice, and many others.

The thing to do is stay home and clean everything like crazy.  Proctor and Gamble is in just about every home in the first world.

The numbers are not the best for them, but is about the safest company out there.


Stay safe everyone, and remember to wash your hands and quit touching your face!


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