Jim Kramer named the shares that will rise in price after the launch of the vaccine
On Monday, Wall Street welcomed more positive data from biotech company Moderna, which is working on a coronavirus vaccine. Jim Kramer, host of CNBC’s Mad Money, Turns His Attention to Investment Opportunities Related to Vaccine Distribution Infrastructure.
«Now that vaccine developers are nearing the finish line, spreading this thing is priority number one.», – said the host «Mad money».
Moderna is the last one at this stage from a vaccine manufacturer who has published optimistic research results the third phase, which even surpasses the promising information that Pfizer reported last week. Moderna has found that its potential vaccine is more than 94% effective in preventing Covid-19, the disease caused by the new coronavirus. Pfizer’s prophylactic vaccine also showed 90% efficacy in late-stage trials.
When the federal government approves the vaccine, it will need to be distributed in those American states where the leadership is responsible for distributing the vaccine to the public, said Jim Kramer about the next steps. Many companies will play a role in logistics, including the refrigeration required for drugs..
He encouraged investors to look to companies like FedEx and UPS for delivery, McKesson for vaccine distribution, Carrier for freezer trucks, and CVS Health for mass vaccinations..
«They are the ones who will ultimately solve this crisis if we can convince enough people to take this damn vaccine.», – he said.
Below are Kramer’s findings for each stock:
«I really like having UPS here. It is trading about 20 times its expected profit next year, he said. – I believe in CEO leadership Carol Tome, the company must make a fortune by distributing the vaccine before the couch potato economy dries up».
«They built a lot of infrastructure after delivering vaccines against the swine flu 11 years ago. It might give them an edge here.», – said the host.
«Carrier makes trucks with freezers and they go above and beyond to make sure we have enough. They are an integral part of the chain», – said Kramer.
«Before the vaccine reaches logistics sites, it will most likely pass through drug distributors, he said. – You can make a lot of money here. This is an oligopolistic industry. It is controlled by McKesson, Cardinal Health … and AmerisourceBergen.».
«If you are looking to buy one of these, I would suggest McKesson. It is the largest, most manageable and, most importantly, the only drug distributor specially selected to participate in the operation. “Warp Speed”», – he added.
«The government has agreements with CVS and Walgreens to provide vaccines to hospital patients for chronic patients, Kramer said. – Everyone who has pharmaceuticals gets support. CVS Will Do the Most».