Looking for Long and Short Ebola Plays
Due to the hype surrounding the Ebola and Enterovirus, we are now searching for related long and short ideas. So far, we focused our bullish Ebola calls on protective apparel and disinfectant themes. This task led us to LAKE and OBCI. APT which makes protective masks has also risen sharply in recent trading sessions. Other segments that seem to be attracting momentum investors’ attention are shares of companies involved in diagnostic tests and medical waste business, such as CEMI, ERB (first two are test business) SENR (medical waste), and SMED (medical waste business). IOBI is also rising on hopes that its “collaborative partner” will be successful in developing an Ebola vaccine. The diagnostic test stocks could get a lift from airports (including JFK) that are not implementing ebola test screening. We are going to nibble at SENR since we have performed some dd on the company and since shares of SMED are rising sharply. We are also going to nibble at ERB since commentary in its Q2 2014 press release were bullish. Please note that we don’t see ERB and SENR as value plays.
As far as the Enterovirus D68 goes, shares of AHPI rose 79.35% in 10/10/2014’s trading session. We are searching for related opportunities.