Alpha Pro Tech (APT) Stock: Yet Another Day Of Gains On Coronavirus

Alpha Pro Tech APT Stock News

Alpha Pro Tech, Ltd. (NYSEAMERICAN: APT) is up big in the premarket hours this morning, gaining around 16% early on. While the company hasn’t issued any press releases or filed anything with the SEC, there’s good reason for the gains.

At the end of the day, news revolving around the coronavirus continues to break, leading to excitement among investors with regard to the sales of face masks. Here’s what’s going on:

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APT Stock Gains As Coronavirus Leads To Face Mask Sales Spike

As mentioned above, Alpha Pro Tech is climbing this morning as investors speculate that the continues spread of the coronavirus will lead to even stronger sales of face masks. The excitement all started about 11 days ago, when the company announced that it had booked more than $10.4 million in face mask orders since January 27, 2020.

That’s a huge announcement my friends. That menas that in just 17 days, APT received $10.4 million in orders for its proprietary N-95 Particulate Respirator face mask. Importantly, the spike in sales was directly related to increased customer demand following the outbreak of COVID-19, or the Wuhan Coronavirus.

In a statement, Lloyd Hoffman, President and CEO at APT, had the following to offer:

Since January 27th, we have received orders for our proprietary N-95 Particulate Respirator face mask representing roughly 24 times the revenue that we have recorded from sales of this product for each year since 2016. We have already commenced additional production of our N-95 face mask at our Salt Lake City, Utah facility, and we expect to continue to increase our production capacity.

Despite our rapid increase in production capacity, backlog of orders continues to expand, in dollar amount and fulfillment time. We expect to fulfill approximately 30% of the currently booked orders in the first quarter of 2020, and we expect further revenue growth after the first quarter as additional orders are shipped. We are committed to allocating the necessary resources and procuring the necessary raw materials in an effort to meet this unprecedented demand for our N-95 face mask and to aid communities around the world as they address this ongoing healthcare crisis.

That News Was 11 Days Ago, What’s Happening Today?

The truth is that Alpha Pro Tech hasn’t issued any news today. Nonetheless, the company seems to be benefiting from a flood of press coverage of the Wuhan Coronavirus.

At the end of the day, due to the announcement 11 days ago, APT has connected the dots between growth of the coronavirus and sales of its face masks for investors. As such, when we see a flood of news hitting the mainstream outlets surrounding the coronavirus, a flood of investor interest will likely take place as increasing concerns will likely lead to stronger sales of face masks.

The New York Times, Fox, and several other trusted outlets have issued news this morning surrounding the fears of a global pandemic. At the same time, President Trump is making headlines after showing frustrations with regard to Americans with coronavirus being let back into the United States.

The bottom line here is that as fears surrounding the coronavirus continue to spread, demand for face masks will likely continue edging up, equating to an immediate benefit to APT and its investors.

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