Wall Street tumbled in a volatile session on Tuesday after the Federal Reserve surprised investors with a half percentage-point cut in interest rates, amplifying fears about the magnitude of the coronavirus' impact on the economy. All three major U.S. stock market indexes dropped more than 3% after the Fed's first emergency rate cut since the 2008 financial crisis. The rate reduction underscored the Fed's concern about the coronavirus that has spread around the world after emerging late last year in China.
A manufacturer of personal protective equipment including N-95 medical masks has seen demand for its products skyrocket. But can it keep the momentum going?
One of the dramatic shifts in our "new normal" is that several mundane businesses have suddenly exploded in demand. Among the biggest beneficiaries of this surge in interest is industrial giant 3M (NYSE:MMM). Previously an increasingly irrelevant organization, 3M's N95 facemask division became a matter of national security. But without adequate production, smaller companies like Alpha Pro Tech (NYSEAMERICAN:APT) have also emerged into the spotlight. Consequently, very few names have skyrocketed quite like APT stock.Source: Pavel Kapysh / Shutterstock.com But should you gamble on this speculative organization?Admittedly, recent news makes it appear that APT stock still has some legs. As I mentioned, companies like 3M have ramped up production of personal protective equipment (PPE) such as face masks. However, accusations of immoral profiteering have plagued 3M and the broader PPE industry.InvestorPlace - Stock Market News, Stock Advice & Trading TipsMost notably, Fox Business host Maria Bartiromo grilled 3M CEO Mike Roman on various issues. Easily the most troubling accusation is that the industrial giant sold their PPEs to the highest bidder, including representatives of foreign countries. You can tell from the interview that Bartiromo was doing her utter best to hide her disgust.I back her views 100%. In this circumstance, you can see how a company like Alpha Pro Tech, which doesn't have the PR glare of 3M, may benefit; hence, the case for APT stock. * 7 Earnings Reports to Watch Next Week The controversy regarding 3M didn't get better until President Donald Trump invoked the Defense Production Act. Suddenly, 3M changed their tune, understanding that the federal government wasn't messing around. As such, PPEs originally destined for foreign countries will now go back to American hands.Still, this fiasco demonstrates the great need for PPEs, which for now supports APT stock. A Narrowing Buy Case for APT StockStill, at some point and perhaps very soon, the question will become, how long will the bullish argument for this company last? If the relationship between the Alpha Pro Tech's technical chart and global coronavirus cases is any indication, we may be nearing the end of this Cinderella story.From around mid-January toward the end of the month, Alpha Pro Tech stock surged 120%. At the time, media reports indicated that China was suffering from a mysterious, infectious disease. Several days before Chinese coronavirus cases hit four digits, speculators reasoned that the outbreak would get much worse. Click to Enlarge Source: Chart by Matt McCall Research Team Plus, it also helped that APT stock was very cheap on paper. Therefore, just a little bit of sentiment was enough to move shares substantially due to the law of small numbers.But following the 120% surge, shares steadily came back down to earth. Still, it wasn't done moving. In the second half of February, speculators anticipated that Covid-19 would turn into a devastating pandemic. Foreseeing massive shortages for PPEs, they again bid up APT stock, from just under $5 to over $25.Like clockwork, following this 414% lift, shares again steadily deteriorated to where we are now at $12. To believe the optimists means that you anticipate another meaningful surge in coronavirus cases.Here's the problem -- mathematically, we're seeing case growth decelerate sharply. I'm not an epidemiologist, but that's not my point. Instead, I think the low-hanging fruit for this stock is gone.In the first major spike of coronavirus infections (when APT stock jumped 120%), case growth increased by 14,489%. In the second spike, cases grew by 1,591% -- significant, yes, but not nearly enough to take a gamble on Alpha Pro Tech. Don't Repeat History LessonsIn the spirit of full disclosure, a long-term buy argument for APT exists. With harsh lessons learned regarding this pandemic, both individuals and government agencies will prioritize preparedness. Therefore, the runway for Alpha Pro Tech could be longer than many skeptics anticipate.Ultimately, I don't think it matters. For investors to truly feel confident in APT stock, they need to know that shares will grow based off more than just a single catalyst. Historically, that's never been the case.Pull up a long-term chart and you'll see what I mean. Back during the H1N1 pandemic, this company enjoyed a rapid burst in market value. But as the outbreak faded, so too did shares. A few years ago, America was gripped with Ebola fears. Again, it jumped but just as quickly, it fell apart.While APT stock could linger longer this time around, I don't see any fundamental justification for it. Being the same old company, I'll continue to avoid Alpha Pro Tech.Matthew McCall left Wall Street to actually help investors -- by getting them into the world's biggest, most revolutionary trends BEFORE anyone else. The power of being "first" gave Matt's readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA) and +1,044% in Tesla (TSLA), just to name a few. Click here to see what Matt has up his sleeve now. Matt does not directly own the aforementioned securities. More From InvestorPlace * America's 1 Stock Picker Reveals Next 1,000% Winner * 25 Stocks You Should Sell Immediately * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post Alpha Pro Tech Is a One-Trick Pony appeared first on InvestorPlace.
Alpha Pro Tech, Ltd. (NYSE American: APT), a leading manufacturer of products designed to protect people, products and environments, including disposable protective apparel and building products, today announced an update to the status of orders booked for personal protective equipment (PPE) products in APT’s disposable protective apparel product suite, including the company’s proprietary N-95 Particulate Respirator face mask and face shields. As of April 7, 2020, APT has booked approximately $36.7 million in orders for the company’s proprietary N-95 Particulate Respirator face mask since January 27, 2020, an increase of $14.1 million, or 62%, from the $22.6 million in orders reported as of March 11, 2020, and the company continues to experience greater demand.
3M (NYSE:MMM) has quickly become another "blood in the street" opportunity.Source: Nor Gal / Shutterstock.com After plummeting from a high of $180 a share to a low of $144.44, the stock offers sizable opportunity.For one, 3M is aggressively oversold at double bottom support dating back to Oct. 2020. Two, President Donald Trump is about to light a fire under the stock.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 9 Stocks to Buy If People Get Stuck at Home At the moment, I strongly believe MMM stock could refill its bearish gap around $180 shortly. Coronavirus Creating Monster Opportunity for 3MJust this week, Dr. Anthony Fauci, director of the National Institute of Allergy and Infectious Disease, as quoted by The New York Post, said the coronavirus has risen to a level of "outbreak," even a "pandemic.""We're dealing with clearly an emerging infectious disease that is now reached outbreak proportions and likely pandemic proportions," said Dr. Fauci. "If you look at, you know, by multiple definitions of what a pandemic is, the fact is this is multiple sustained transmissions of a highly infectious agent in multiple regions of the globe."Of course, news like this only induces panic. However, for investors, it also creates opportunity. Trump Could Send $1 Billion in Sales to 3MIt creates big opportunity, which is especially true for face mask companies after the U.S. Health and Human Services says the U.S. only has 10% of face masks needed for a full-blown virus pandemic. They estimate the U.S. would need at least 3.5 billion medical-grade N95 masks.Better, the Trump Administration has plans to source millions of masks from 3M to help combat the virus threat. If so, that could generate up to $1 billion in sales for the company. Vice President Mike Pence said in a press conference:We're going to make sure and protect the health of our healthcare providers. As the President said, we have more than 40 million masks available today. We've contracted now with 3M. Thirty-five million more masks per month will be produced, and we're also going to be working with other manufacturers.For 3M, it's not all about face masks, though. It's also ramping up global production for respirators and other safety products, "as quickly as possible," noted the company. "In China and around the world, 3M is working with customers, distributors, government and medical officials to help get supplies where they are most needed. 3M is also closely monitoring and responding to any potential impact."Granted, 3M isn't the only game in town. Alpha Pro Tech (NYSE:APT) has also benefited from the demand for face masks. With regards to 3M, though, "The simple reality is that 3M is one of only a handful of S&P names that sells a necessary product in virus containment," according to a Melius Research report. "This is being ignored by the market."Melius Research also upgraded the stock to a "buy" from a "hold" rating. The Bottom Line on 3M StockThe biggest catalyst for 3M is the coronavirus story.With the virus spreading rapidly throughout the global community and a severe shortage of face masks, 3M could be one of the biggest beneficiary of the demand boom. Currently at double bottom support, I strongly believe 3M will refill its gap at $180 shortly.Ian Cooper, an InvestorPlace.com contributor, has been analyzing stocks and options for web-based advisories since 1999. As of this writing, Ian Cooper did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 Stocks to Buy If People Get Stuck at Home * 7 Strong Value Stocks to Buy for 2020 * 5 High-Yield Dividend Stocks With Great Buyback Programs The post 3M Stock Could See a Billion-Dollar Boost from Trump appeared first on InvestorPlace.
Alpha Pro Tech reported surging demand continues for face masks, face shields and other personal protective gear.
Benzinga Pro's Stocks To Watch For Thursday * Boeing (BA) \- Shares collapsed 18% on Wednesday, the stock's worst single trading session in almost 50 years. The company's market cap plunged by about $70 billion on Wednesday. Reports suggested Boeing will draw down all of a nearly $14 billion loan as a precaution and will freeze hiring. Additionally, the FAA said it did not approve the company's 737 MAX wiring bundles compliance proposal. The stock continued lower by another 14% on Thursday. JP Morgan downgraded the stock to Neutral. * Alpha Pro Tech (APT) \- The company gave an update on sales of its N-95 facemask: between Jan. 27 and Mar. 11, the company booked $22.6 million in orders. Alpha Pro Tech said it will fulfill about $4 million of currently booked orders in Q1 and the remaining $18.6 million in early Q3. The stock was up 40%. * Uber Technologies (UBER) \- The stock was down 11% in pre-market action as fears about the company's ride-share business amid the coronavirus outbreak weighed. Reports Wednesday suggested workers of Uber and Lyft were demanding paid sick leave. Another report suggested the company could suspend accounts of drivers and passengers who have been confirmed with coronavirus infection. * Blue Apron (APRN) \- Shares rallied on Wednesday, up 12%, as investors likely considered the implications of Americans being indoors for potentially the next couple weeks. As a provider of delivered food to consumers at home, Blue Apron is being considered a potential beneficiary to the coronavirus outbreak. * CHF Solutions (CHFS) \- Shares of this penny stock were indicated sharply higher in pre-market action, up 82% to around $0.57. The Benzinga Pro Newsdesk did not see company-specific news to justify the move higher but should be noted the company is a medical device manufacturer. Its Aquadex FlexFlow system is indicated for temporary ultrafiltration treatment of patients with fluid overload who have failed diuretic therapy.See more from Benzinga * Benzinga Pro's Top 5 Stocks To Watch For Mon., Mar. 9, 2020: XOM, GLD, BA, TSLA, SPEX * Benzinga Pro's Top 6 Stocks To Watch For Tues., Mar. 3, 2020: TGT, BYND, UBER, NOVN, QRVO, HTBX * Benzinga Pro's Top 5 Stocks To Watch For Thurs., Feb. 27, 2020: MSFT, JCP, APT, BBY, TNXP(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
The EU is curbing exports of medical protective gear outside the bloc, as Italy, Spain, Germany and France see coronavirus cases surge.
The coronavirus from China has ravaged many stocks, but a handful of companies are actually set to benefit from this unfortunate viral outbreak. Alpha Pro Tech (NYSEMKT:APT) stock is among that handful of beneficiaries as the company "develops, manufactures, and markets innovative disposable protective apparel and infection control products in the United States and internationally."Source: Pavel Kapysh / Shutterstock.com It's not a new company, as it's been around since 1989. But few people covered Alpha Pro Tech until the demand for protective face masks became an issue with the spread of Covid-19.Suddenly protective-gear stocks are hot, and this one in particular has the potential for strong returns as the outbreak is proving difficult to contain.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Responding to the DemandI hate to say that Alpha Pro Tech investors have capitalized on this tragic viral outbreak, but the price action tells a story that's unmistakable. By late February, it was evident that the coronavirus wasn't just going to go away. Officials keep confirming new cases in the U.S. This resulted in Alpha Pro Tech shares, which had previously traded near $5, to rocket up to $37. * 10 Stocks That Every 20-Year-Old Should Buy Obviously, people were seeking protection from the virus and face masks were in demand. Enterprising traders sought to take advantage of this through Alpha Pro Tech shares. Profit-taking set in soon afterwards, though, and the stock price quickly headed down toward $16.That price pullback isn't a bad thing, however. It presents an opportunity to take a position or to add shares to one's portfolio. For one thing, investors need to realize that Alpha Pro Tech was among the first responders to the international expansion of the Covid-19 outbreak.On Feb. 3, CEO Lloyd Hoffman announced a ramp-up in production of the company's N-95 Particulate Respirator face masks as well as other essential protective products:"In addition to N-95 face masks, demand for face shields and other personal protective equipment (PPE) products is increasing. The company is monitoring inventory levels across our full line of PPE products and will take appropriate steps to increase production to respond to consumer demand." Designed for ProtectionBut, of course, the strongest demand will be for face masks. The media constantly shows pictures and videos of people in China wearing face masks. So, investors will likely continue to assume that this market is the best investment in the protective-gear niche.An important message for not only investors, but the population at large, is that not all face masks are ideal for protection against the Covid-19 virus. Alpha Pro Tech is committed to manufacturing face masks that specifically protect against airborne infections. These N-95 masks are also fully compliant with regulatory standards. That's something you can't necessarily say about other masks.The company explains what makes its most popular line of face masks superior as well as why it's called the "N-95":"The Alpha Pro Tech N-95 Particulate Respirator face mask's unique flat-fold design features a Positive Facial Lock (PFL) and meets the Centers for Disease Control and Prevention's (CDC) and National Institute for Occupational Safety and Health's (NIOSH) recommended protection levels for many airborne contaminants. The N-95 face mask filters at least 95% of airborne particles."Investors and the protection-seeking population should seek quality over quantity. Therefore, they should consider Alpha Pro Tech as the company's face masks are high quality and specifically designed for protection.I expect the pace of orders for the N-95 face mask to continue to increase. Both businesses and citizens will want the strongest protection from the airborne coronavirus. We can already see the trajectory of the demand.By Feb. 13, Alpha Pro Tech had already fielded over $10.4 million worth of orders for the N-95 face masks since Jan. 27. And that figure had increased to $14.1 million by Feb. 27. The Final Word on APT StockAlpha Pro Tech was not only among the first responders to the spread of the coronavirus, but is meeting the strong demand for face masks. Its product sets the standard for quality, compliance and protection from this devastating disease.David Moadel has provided compelling content -- and crossed the occasional line -- on behalf of Crush the Street, Market Realist, TalkMarkets, Finom Group, Benzinga and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets. As of this writing, David Moadel did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * Check Out These 7 Fast-Growing Stocks to Buy Today * 10 Stocks That Every 20-Year-Old Should Buy * 7 Losers To Buy Today For Big Wins Tomorrow The post Hold Alpha Pro Tech Stock as Face Mask Demand Soars appeared first on InvestorPlace.
It's really great to see that even after a strong run, Alpha Pro Tech (NYSEMKT:APT) shares have been powering on, with...
The number of U.S. cases of the coronavirus that causes COVID-19 rose above 400,000 on Wednesday, as companies continued to cut costs and furlough workers as they close offices and idle plants to prevent the spread of the deadly illness.
It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks...
Kroger (NYSE:KR) stock is in rare company. Among stocks with a market capitalization over $10 billion, only about 12% have risen so far in 2020. Fewer than 5% have outperformed Kroger stock, which has gained a healthy 5.6%.Source: Jonathan Weiss / Shutterstock.com It's tempting to chalk up the gains to the novel coronavirus pandemic. Consumers have stocked up on essentials ahead of shelter-in-place orders. and that trend has given a big short-term boost to Kroger sales.But there's been more to the 2020 gains than just a short-term boost. And there's more to the long-term case, as well.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThis is one of the country's best companies. Even after the gains, KR stock still looks cheap. In fact, it looks too cheap. And that's just one of the reasons why Kroger stock should keep rallying. Kroger Gets a BoostOn Wednesday, Kroger provided a business update for investors. The company noted "strong sales" in February, the first month of its fiscal year 2020. But March was far more impressive. * 7 Penny Stocks To Buy with Massive Upside Potential According to the release, same-store sales excluding fuel rose a staggering 30%. As a result, Kroger expects its adjusted earnings per share (EPS) growth in the first quarter to be better than its original full-year guidance. That guidance suggested a 5-10% year-over-year increase in FY20.Investors might see even that guidance as conservative. It could be, but it's worth considering two important factors.First, Kroger's costs are going up as well. The company is providing a "hero bonus" of $2 per hour to its hourly frontline employees. Increased sanitation and installation of safety measures like plexiglass partitions will also increase expenses.Certainly, Kroger's first quarter earnings will look solid. But it's unlikely that earnings will grow at the same pace as sales, given higher costs.Secondly, a short-term boost alone doesn't make KR stock a buy. That's true for any stock. Indeed, I've made that argument in expressing caution toward "pandemic plays" like Lakeland Industries (NASDAQ:LAKE) and Alpha Pro Tech (NYSEAMERICAN:APT) that have seen huge gains.The burst in demand will put some extra cash on Kroger's balance sheet. That's helpful, but doesn't make Kroger stock a buy. However, the March figures do show that one key risk might not be what investors believed. Competition for KrogerKR stock hasn't exactly lit the world on fire in recent years. The stock entered 2020 at the same levels at which it traded in late 2014.One key reason for this has been competition. Walmart (NYSE:WMT) has improved its execution and spent heavily on omnichannel retail and grocery delivery and pickup. Meanwhile, Target (NYSE:TGT) has also turned itself around.Additionally, low-cost German operators Aldi and Lidl have expanded across the country. And while competition in the industry always is intense, Kroger has more and better competitors out there now.That's put a lid on the multiple assigned to KR stock. Free cash flow actually has increased over the last six years, as well as adjusted EBITDA. Yet, investors have paid less for those earnings -- due at least in part to competitive fears.What recent results show, however, is that Kroger is holding its own. It's not just the 30% increase in March same-store sales, either. Same-store sales excluding fuel (fuel revenues are significantly impacted by gasoline prices) rose a solid 2% in fiscal 2019.Overall, Kroger is competing hard in a tough space. And while it's not exactly dominating competitors, it's at least driving growth. That growth, however, doesn't seem reflected in the KR stock price. KR Stock Looks CheapIn updating on its sales trends for February and March, Kroger reaffirmed full-year fiscal 2020 adjusted earnings per share guidance of $2.30-$2.40.At the midpoint of that range, EPS would increase about 7.5%. But, Kroger stock trades at less than 14 times the midpoint of that guidance.That multiple doesn't seem to reflect the growth profile of the business -- even excluding the short-term bounce. As recent results show, KR is a defensive stock, whose earnings can and will hold up even in a recession. Profits are still growing, but the valuation assigned KR stock treats its future growth as close to zero.That's not what is happening now. It's not what happened in a particularly strong fourth quarter, either, in which adjusted EPS increased 19% year-over-year.Even the year-to-date rally doesn't seem to incorporate that growth. Kroger is still one of the cheapest large-cap stocks out there. Its business clearly is built for pretty much any environment, and it's matched the efforts of larger rivals in delivery and pickup.That said, it's that combination that underpins the long-term case for KR stock. That case looks solid, and will stay that way even once this crisis passes.Matthew McCall left Wall Street to actually help investors -- by getting them into the world's biggest, most revolutionary trends BEFORE anyone else. The power of being "first" gave Matt's readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA) and +1,044% in Tesla (TSLA), just to name a few. Click here to see what Matt has up his sleeve now. Matt does not directly own the aforementioned securities. More From InvestorPlace * America's 1 Stock Picker Reveals Next 1,000% Winner * 25 Stocks You Should Sell Immediately * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post After a Strong Start to 2020, Kroger Stock Still Has Upside Ahead appeared first on InvestorPlace.
Revenue for the first quarter of 2020 increased 47.5% to $18.2 million, compared to $12.3 million for the first quarter of 2019.Net income for the first quarter of 2020.
Companies In The News Are: POAI, APT, AQST, TACO
Of late the Alpha Pro Tech (NYSEMKT:APT) share price has softened like an ice cream in the sun, melting a full 47...
Alpha Pro Tech (NYSEMKT:APT) shares have continued recent momentum with a 33% gain in the last month alone. Zooming...
Wall Street tumbled in a volatile session on Tuesday after the U.S. Federal Reserve surprised investors with a half percentage-point cut in interest rates, amplifying fears about the magnitude of the coronavirus' impact on the economy. All three major U.S. stock market indexes closed nearly 3% lower after the Fed's first emergency rate cut since the 2008 financial crisis. The rate reduction underscored the U.S. central bank's concern about the new coronavirus, which has spread around the world after emerging late last year in China.
NOGALES, Ariz., March 12, 2020 -- Alpha Pro Tech, Ltd. (NYSE American: APT), a leading manufacturer of products designed to protect people, products and environments, including.
Alpha Pro Tech Ltd. , a maker of products aimed at protecting people, including personal protective equipment and building products, said Wednesday it has booked about $36.7 million of orders for its N-95 face masks between Jan. and April, which are currently in high demand amid the coronavirus pandemic. The Nogales, Arizona-based company said that's up 62% from the same time a year ago and that it continues to see strong demand for the masks that can filter out airborne particles. The company is ramping up production and expects a phase 2 expansion to be operational by late summer. The company has also see a steep rise in demand for face shield products with orders of more than $11.6 million compared with $1.6 million a year ago. The company has also seen strong demand for gowns, lab coats, shoecovers and bouffant caps, which are made by a joint venture in India that is currently in lockdown. Shares were down 1.8% premarket but have gained 259% in the year to date, while the S&P 500 has fallen 18%.