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Profit from sectors providing Covid 19 Solutions

by , 09 June 2020
Profit from sectors providing Covid 19 Solutions
The final theme in our 6-part series is Healthcare and Pharmaceuticals.

While the global pandemic seems to be “under control” and vaccine trials on the go, there's a continued focus on healthcare, hospitals and medication. These form part of a defensive sector that is generally less cyclical.

In preparation for an increase in Covid-19 patients the healthcare sector ramped up medical equipment and infrastructure needed to sustain the lives of those infected.

Vaccine production and trials have accelerated as countries push to get an approved drug rolled out.

China's Sinovac leads the race with its CoronaVac, as it moves to stage two of the clinical trials following a positive outcome in preliminary testing on 144 individuals. It has started developing a commercial vaccine facility, that will be capable of making 100 million CoronaVac vaccines per year.

With significant attention on how fast infectious diseases and viruses can spread globally, the world will be better prepared for future pandemics. The biggest lesson from the Covid-19 pandemic is how not being prepared for pandemics can cripple the global economy.

One of our favorite stocks in this sector is Mediclinic, it published results last week. Its performance in a tough environment was decent. When you strip out the impairments of Spire and the Middle east it would have made a profit.

Management have decided to halt dividend payments to retain essential liquidity in the company. One of the biggest positives is its improved cash conversion at 109% of EBITDA. And there shouldn't be any significant impairments in the future.

There's a big focus on digitization to improve efficiencies and build innovative care delivery models this will ensure the company remains competitive going forward.

With some profit taking materialising, investors should wait for a further pullback in MediClinic's price.

Buy dips below R61.

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550 people ALREADY have my number in their address book - and since I started SMS’ing them (Since the COVID-19 Lockdown), they've made R8,848 profit. 
 
Now it's YOUR turn to see
how much you could make
 
 
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Open a Protrade account to buy into the Corona Vaccine pharma-giants
  
For investors looking to access the pharmaceutical companies at the forefront of the corona virus vaccines and therapies, visit www.protrade.co.za.
  
ProTrader is a leading investment platform offering local and offshore opportunities. Its suitable for all levels of investors and traders offering Shares, Commodities, CFDs and Forex and allows you to trade from anywhere on any device!
    
See you next week.
   
Gavin McCarter,
Contributing Editor, Money Morning
 


Profit from sectors providing Covid 19 Solutions
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