When the novel coronavirus capsized our paradigm and gave us a new reality – the new normal – the immediate reaction was inevitable: buying boatloads of toilet paper. But having satisfied their excretory needs, Americans then turned to the next logical endeavor of short-term stocks to buy. That’s one of the biggest reasons why the markets bounced higher in the early stages of the pandemic. But can investors still benefit late into the game?
Of course, this is a tricky question to answer because of the inherent volatility of Covid-19. However, because of this volatility, I believe hardened traders can still make a quick buck. According to a recent report by the New York Times, many European nations, which suffered tremendously during the initial strike, felt that the worst was over. Now, it turns out a second wave has arrived, which has significant implications for short-term stocks to buy.
That’s because international governments are ready to yet again throw everything they have at this awful virus. From the same Times article above:
The resurgence has prompted officials to close bars and clubs in Prague and Liverpool, and to make face masks mandatory in public indoor spaces in Amsterdam. In Russia, which reported its largest daily increase in infections on Wednesday, President Vladimir V. Putin sought refuge from the torrent of bad news by announcing that his government had approved a second vaccine.
I don’t want to speculate about what will happen here. Unfortunately, my gut tells me that we will not avoid the same fate as the Europeans. Based on the latest data from the Centers for Disease Control and Prevention, new daily coronavirus cases have been steadily rising since early September. This high threshold leads me to believe that these short-term stocks have viable upside potential.
- American Well (NYSE:AMWL)
- Alibaba (NYSE:BABA)
- Sony (NYSE:SNE)
- GameStop (NYSE:GME)
- Smith & Wesson Brands (NASDAQ:SWBI)
- InflaRx (NASDAQ:IFRX)
- VBI Vaccines (NASDAQ:VBIV)
Now, some of these ideas may flourish into longer-term investments. Much of that will depend on the results of the election. However, others are very much speculative ideas. While I know that this is what you’re here for, I will provide warnings about which ideas I think feature higher-than-normal risk profiles. With that out of the way, here are my choices for short-term stocks to buy.
American Well (AMWL)
As a telehealth specialist, American Well has obvious implications for this unprecedented time. In addition, I’m going to be blunt: AMWL stock is perhaps one of the most cynical plays among short-term stocks. With the possibility of a second wave, that means our healthcare networks are likely to be clogged with Covid-19 patients.
Moreover, who would want to be in that environment? As The Lancet pointed out, “Compared with the general community, front-line health-care workers were at increased risk for reporting a positive COVID-19 test.” You may know that The Lancet is a peer-reviewed medical journal. Therefore, if you have folks that believe in Covid conspiracy theories, you may want to direct them to this report.
Then again, those conspiracy theorists do help the case for AMWL stock. So, scratch that if you want to buy AMWL. Instead, direct your conspiratorial friends and family members to Infowars. Yeah, I told you this was a cynical play!
Finally, Teladoc Health (NYSE:TDOC) has a much longer track record, while American Well is a recent initial public offering. Still, the psychological effect of a cheaper price tag makes AMWL a worthy consideration for short-term stocks to buy.
I’m not stupid (well, some of you have vigorously disagreed with this assertion!). Seriously, I realize that even among left-leaning voters, China is not a feel-good subject. As President Trump reminds us, there are several names for the coronavirus and I’m not talking about Covid-19.
SARS-CoV-2? You got to be kidding me.
No, our Commander-in-Chief prefers terms like “China virus” or “Chinese virus.” Sometimes, the President utilizes the true scientific term, “kung flu.” It warms my heart that Trump is bringing communities together without scapegoating and pitting people against each other.
But for some strange reason, most Americans don’t feel that way. Likely, the polls are fake. But just in case they’re a little bit real, you may want to consider Alibaba and specifically BABA stock.
Believe me, while the Democrats are feeling good about their chances, there is anxiety in the air due to the severe lessons of 2016. Therefore, BABA stock, which theoretically would do well under a Joe Biden-Kamala Harris administration, has risen but perhaps not to the magnitude that it could if voting sentiment were clearer.
Of course, the risk to putting BABA on your list of short-term stocks to buy is if Trump wins again. That would crater Alibaba. So, consider this a high-risk, high-reward momentum trade.
Geopolitically, I’m not sure how Sony or Japanese stocks for that matter will respond to the 2020 U.S. election. On one hand, I’m sure the Japanese government would love working with a rational administration. No, I don’t think Joe Biden is completely right in the head. However, I believe he’s smart enough to put smart advisors around him.
Still, let’s give credit where it’s due. The U.S. cannot afford to have China call the shots, especially in the vital Asia-Pacific region. If I’m not mistaken, President Trump has been the most aggressive American leader against Chinese shenanigans. And yes, they are indeed shenanigans and they should be addressed.
So, that’s a lot of pressure on SNE stock. Nevertheless, I’m reasonably confident that shares will rise due to Sony being relatively insulated from the coronavirus. Globally, we saw a significant increase in time spent playing video games.
Also, SNE stock should experience a holiday lift due to the upcoming PlayStation 5. From what I hear, this will be a groundbreaking console. So make sure to consider it for your list of short-term stocks to buy.
Related to the video game sector is of course GameStop. Ordinarily, I would put something like this dead last on a stocks-to-buy gallery. There’s just too much going on with GME stock that makes it less than a confident investment. As you know, the gaming retailer has suffered badly from irrelevance as the industry began shifting to digital downloads and subscription services.
Therefore, as an investment, GameStop is incredibly risky. But as a candidate for short-term stocks? Well, it’s still risky! However, some recent developments may help the case for this long-embattled retailer.
According to an article from WCCFtech.com, GameStop entered into a partnership with Microsoft (NASDAQ:MSFT). In part, this deal involves GameStop getting “a cut of all digital revenue produced by the Xboxes they sell. So, if you buy an Xbox Series X from GameStop and then download a digital copy of Assassin’s Creed Valhalla? GameStop gets a cut. Or sign up for Xbox Game Pass? GameStop gets a cut. Buy a movie or pay-per-view…well, you get the idea.”
Essentially, GME stock is now levered to the digital gaming services revenue channel. It also raises the possibility that Sony could start an identical partnership with GameStop. Certainly, shares have exploded higher since I previewed the company’s first-quarter earnings report. However, with the holiday season coming up, there might be more room to run.
Smith & Wesson Brands (SWBI)
Strangely, Smith & Wesson Brands may have entered into unprecedented territory. Typically, gun stocks are tied distinctly to politics. Basically, Republicans love them, Democrats hate them. However, the relationship is usually counterintuitive.
Let’s face reality – Democrats want to take your guns. But that alone wouldn’t be so terrible. Rather, it’s the kind of guns that Democrats want to take, the so-called “black rifles.” For Republicans, the leftist opposition is the NFL, as in the “No Fun League.”
However, those realities may no longer apply, as I argued in a CGTN America interview. Instead, the chaos on American streets may inspire anyone and everyone to buy guns. That obviously bodes well for SWBI stock. Nevertheless, let me be cynical once more. If Biden wins, SWBI will get its mojo back.
I say this because of Senator Kamala Harris. Known as public enemy number one in the state many Republicans refer to as “Kommiefornia,” Harris has consistently advocated for stricter gun control. Just the thought that she could be a heartbeat away from the Presidency means that gun lovers have that sinking feeling in their stomachs.
That’s why I see a huge boost for SWBI stock. Even if Trump wins, the conflict and chaos will probably incentive firearms sales like it did early in the pandemic. So, while I see this as one of the riskiest short-term stocks to buy, it really has tremendous potential.
Although the White House has pushed the pharmaceutical industry to develop a coronavirus vaccine in record time via the Operation Warp Speed initiative, so far, the resultants have been lackluster. Don’t get me wrong – we shouldn’t blame the companies developing vaccine candidates. Typically, this process takes years to complete.
Therefore, the focus began shifting toward therapeutics, an area that InflaRx specializes in. And this matter became all the more urgent when President Trump himself came down with Covid-19. As you know, Trump’s medical team prescribed him an antibody cocktail from Regeneron Pharmaceuticals (NASDAQ:REGN) and remdesivir, a repurposed drug made by Gilead Sciences (NASDAQ:GILD).
However, even the treatment space got a rude awakening when Eli Lilly (NYSE:LLY) disclosed that it was halting its clinical trial for its own therapeutic, which is very similar to Regeneron’s REGN-COV2. That’s not a great look for either Eli Lilly and perhaps to some extent Regeneron.
Although it’s risky, speculators may want to take a look at IFRX stock. In a nutshell, when the coronavirus enters the body, it creates antigens which then may cause a cytokine storm. This is a poor health outcome as it basically means that the body starts attacking itself. Therapeutics like those developed by InflaRx kill these antigens.
But the biggest question right now is safety. Favorably for IFRX stock, The Lancet reported that InflaRx’s therapeutic, IFX-1, “did not result in any signals of concern.” Although it’s a long shot, you may want to consider IFRX for your speculative short-term stocks to buy.
VBI Vaccines (VBIV)
When Operation Warp Speed first launched, the emphasis was of course on speed. Most likely, President Trump wanted a vaccine out before the election. Unless God comes roaring down with a thunderous voice, that’s probably not going to happen. As well, many vaccines have endured disappointing news.
Weeks ago, Johnson & Johnson (NYSE:JNJ) made headlines when it announced that its vaccine candidate will utilize a one-dose regimen. But the healthcare giant is also pausing its clinical trial due to safety concerns. I’m not terribly worried about JNJ due to its vast empire. However, this specific setback opens the door for VBI Vaccines.
Writing for EmergingGrowth.com, I explained the scientific argument for VBIV stock as follows:
What we really need is a one-and-done solution. And that’s where VBI Vaccines comes into the picture with its enveloped virus-like particle (eVLP) approach. Similar to a traditional vaccine, an eVLP provides the genetic sequence of the target virus to the cell. But the key difference here is that eVLP involves only the spike protein, in this case the “sticky” portion of the novel coronavirus.
Most importantly, what VBI’s eVLP approach offers is high antibody titers. That’s because the high surface-to-volume ratio of the small particles associated with eVLP vaccines enables the delivery of several copies of the spike protein. Essentially, one eVLP can bind to multiple cells, initiating a wave of antibody production.
Further, research from the Wuhan Institute of Virology notes that eVLP vaccines feature self-adjuvanting properties, an advantage over subunit vaccines. Best of all, eVLPs are known for their safety and simplicity, attributes that could make it a big winner in the Covid vaccine race.
Obviously, this is another high-risk, high-reward venture. While VBIV stock benefits from a single-dose regimen, VBI’s candidate can also incur problems under further clinical trials. Still, this could be a “backdoor” opportunity for the gambler.
On the date of publication, Josh Enomoto held a long position in SNE and GME.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.