Coronavirus Stocks Take A Dive As Profit Taking Takes Hold

Coironavirus Stocks IBIO BIOC MRNA APT

As of late, the Wuhan coronavirus, or COVID-19 has been a hot topic of discussion in the investing space. In fact, coronavirus stocks are essentially a new sub-class of stocks, at least for the time being.

With the spread of the epidemic continuing to hit headlines, stocks like MRNA, APT, BIOC, CPHI and IBIO have all seen substantial gains. However today, it seems as though the tides have shifted with each of them taking notable losses.

We’ll talk about the opportunity this creates for investors in a minute. First, here’s what we’re seeing from some of the most active coronavirus stocks today:

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Moderna Inc (NASDAQ: MRNA) stock saw a dramatic run in value after being the first in the biotechnology space to announce that it has sent a COVID-19 vaccine candidate into human testing. Today, the stock is down 8.13% as profit taking in coronavirus stocks commences.

Alpha Pro Tech, Ltd. (NYSEAMERICAN: APT) stock saw a significant run upward in value after announcing recent sales results. The company is the developer and manufacturer of next generation face masks. With the Wuhan coronavirus spreading, the company is seeing a massive increase in orders, more than $14 million of which were received in less than a month. Today, as the profit taking comences, the stock is down more than 14%.

Biocept Inc (NASDAQ: BIOC) stock has been another big gainer. The stock saw positive movement and strong momentum after announcing that it was working to bring COVID-19 diagnostic testing to the market. Once again, this is another stock taking a dive this morning. In fact, the stock is down about 5% before the bell.

China Pharma Holdings, Inc. (NYSEAMERICAN: CPHI) recently announced that it’s subsidiary has launched a wash-free sterilizer in response to the epidemic. The stock rocketed as a result. However, like most in the coronavirus space, the stock is down. CPHI is trading on losses of 16.67%.

iBio Inc (NYSEAMERICAN: IBIO) has been one of the biggest runners among coronavirus stocks. Not only did the company team up with CC Pharming to develop a vaccine, it owns the FastPharming Facility. The facility is capable of quickly manufacturing mass amounts of vaccine, giving the company an competitive advantage. Unfortunately, the stock is down 6.79% along with the rest in the COVID-19 space.

What’s Happening?

So, was there a cure created? Is the coronavirus proving not to be so much of a big deal? Why are all of these stocks sinking? Well, there is no cure and the coronvirus is still a very big issue. Here’s what’s happening.

The stock market tends to move through a series of ups and downs. When we see dramatic gains, we tend to see profit taking. Think about it, all of the stocks mentioned above have grown substantially in the past few weeks. Some of them have gained in multiples.

With such strong movement upward, it was only a matter of time before investors started to take profits. That’s exactly what’s going on today. Coronavirus stocks are taking a rest from their recent dramatic rise.

Does that mean that the run in the value of these stocks is completely over? Not at all!

These stocks aren’t running for no reason. The coronavirus continues to spread and each one of them is in a position to benefit from their work to stop the spread of the virus. We can expect to see more gains in demand for APT face masks, CPHI sanitizer and more. BIOC will benefit greatly from bringing a diagnostic test to market and MRNA could see a large increase of revenue from a coronavirus vaccine. Finally, IBIO stands a chance at being one of the first to develop a vaccine, but even if it doesn’t, it’s likely to see tremendous revenue growth on the manufacturing side thanks to its competitive advantages.

All in all, every stock on this list has the potential to see dramatic gains ahead. So, it may be a good idea to watch for a bottom on this profit taking spree and jump in at a discount!

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2 thoughts on “Coronavirus Stocks Take A Dive As Profit Taking Takes Hold”

  1. Great article. Very informative. I was wondering if you will be mentioning TOMI environmental in any of your Coronavirus articles in the near future? I am interested in a prospective from your company on them.

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