Mandy Money

Mandy Money

h1 2020 – market winners & losers

It has been a crazy few months on global sharemarkets. Following one of the quickest sell-offs in market history, shares have rebounded with force. Here we deep dive into some winners and losers…

Winner 1: eCommerce Companies

As customers increasingly turn to the internet for their shopping needs, eCommerce companies Amazon and Kogan have seen profit forecasts skyrocket, and some significant increases in valuation.

Winner 2: Vaccine Producers

As COVID-19 continues to run rampant globally, the race for a vaccine is officially on.

Private pharmaceutical companies with capabilities in vaccine production have seen valuations increase significantly. The potential profitability of a vaccine has investors excited, with some noticeable jumps in valuation.

US company NOVAVAX has been a big beneficiary of this trend, at the time of writing the company was up 1342% for the year.

Winner 3: The Local Outdoors

As consumers become accustomed to the reality that air travel may tough for some time, camping and outdoors suppliers are booming!

Winnebago (producer of campervans) has seen a huge jump from their March low, however, that return is dwarfed by Camping World’s which has seen a 695% return from their March low (some crazy numbers).

Big Loser 1: Aviation 🙁

With closed borders & grounded flights, airlines & airplane manufacturers have been hit hard.

Boeingm, in particular, has been hit by a triple whammy:

  1. Decreased demand for travel resulting in less/cancelled plane orders
  2. Airlines going bankrupt and increasing the supply of planes available on the second-market
  3. Lingering uncertainty from the 737 MAX scandal

These three converging factors lead to lower profit expectations, higher risk and therefore decreases to share prices.

Any sweet market opportunities?

Be sure to check out our friends Stake for your US investing needs! 

This is only a select group of market performers - drop us a line with any more you might have!

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