Date : April 6, 2021
The Brazilian Covid-19 variant is raging over recent days, with deaths and new cases skyrocketing. And it isn’t just happening in Brazil. While the Brazil variant is bad – estimated to be 2.5x as transmissible and more deadly – it is still reportedly containable with current vaccine solutions. However, the horizon on that notion is limited.
One might imagine the current reality as a face-off between Virus 1.0 and Vaccine 1.0. In a matter of months, we will see Virus 2.0 battling Vaccine 2.0. Some number of months later, we will bear witness to the match between Virus 3.0 and Vaccine 3.0.
The big point is this: we will be in this battle likely for decades. And vaccines will be a big part of it. But so will PPE and antiviral cleaning solutions and testing kits. Each of these domains now represents likely multi-billion-dollar markets for the long-term as maintaining our edge over the virus becomes a central premise for value creation around the world and across the economy.
With that in mind, we take a look at a few of the most interesting opportunities in the space, including: Clorox Co (NYSE:CLX), Alpha Pro Tech Ltd (NYSEAMERICAN:APT), Boon Industries (OTCMKTS:BNOW), and Reckitt Benckiser Group PLC – ADR (OTCMKTS:RBGLY).
Clorox Co (NYSE:CLX) bills itself as a leading multinational manufacturer and marketer of consumer and professional products with approximately 8,800 employees worldwide and fiscal year 2019 sales of $6.2 billion.
Clorox markets some of the most trusted and recognized consumer brand names, including its namesake bleach and cleaning products; Pine-Sol® cleaners; Liquid-Plumr® clog removers; Poett® home care products; Fresh Step® cat litter; Glad® bags, wraps and containers; Kingsford® charcoal; Hidden Valley® dressings and sauces; Brita® water-filtration products; Burt’s Bees® natural personal care products; RenewLife® digestive health products; and Rainbow Light®, Natural Vitality™ and NeoCell® dietary supplements. The company also markets industry-leading products and technologies for professional customers, including those sold under the CloroxPro™ and Clorox Healthcare® brand names. Nearly 80% of the company’s sales are generated from brands that hold the No. 1 or No. 2 market share positions in their categories.
Clorox Co (NYSE:CLX) most recently announced a new initiative among world-class experts in disinfection, infection control, and health and wellness dedicated to providing guidance on increased safety measures and instilling confidence in people as they return to shared spaces.
According to the company’s release, Clorox’s Safer Today Alliance, a program developed in collaboration with Cleveland Clinic and the CDC Foundation, will fuel research and innovation to help enhance public health and safety outside the home, now and beyond the COVID-19 pandemic. The Alliance supports key sectors including retail, travel, hospitality, entertainment, and transportation.
And the stock has been acting well over recent days, up something like 2% in that time. Shares of the stock have powered higher over the past month, rallying roughly 5% in that time on strong overall action.
Clorox Co (NYSE:CLX) generated sales of $1.8B, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of -3.9% on the top line. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($732M against $1.7B, respectively).
Alpha Pro Tech Ltd (NYSEAMERICAN:APT) sells disposable protective apparel, building supply products, and infection control products in the United States and internationally. The big idea powering the stock during its runs over recent months is its personal protection equipment like masks.
The company operates through three segments: Building Supply, Disposable Protective Apparel, and Infection Control. The company distributes its products through a network of purchasing groups, distributors, and independent sales representatives, as well as through its sales and marketing force.
Alpha Pro Tech Ltd (NYSEAMERICAN:APT) most recently announced financial results for the fourth quarter and full year ended December 31, 2020, including record net sales of $29.0 million, compared to $10.9 million for the fourth quarter ended December 31, 2019, and record net income of $7.4 million, or $0.53 per diluted share, compared to net income of $335,000, or $0.03 per diluted share, for the same period of 2019
Lloyd Hoffman, President and Chief Executive Officer of Alpha Pro Tech, commented, “Alpha Pro Tech delivered an exceptional year, reaching several milestones, including surpassing $100 million in revenue, over $27 million in net income and $1.94 diluted earnings per share. 2020 was a record year for face masks, with sales totaling $41.8 million, blowing past the prior record set in 2009 during the H1N1 pandemic by a multiple of 2.4 times. Face mask sales grew during each quarter of 2020. Fourth quarter face mask sales were $15.4 million, compared $13.4 million in the third quarter of 2020, $8.5 million in the second quarter of 2020 and $4.5 million in the first quarter of 2020. The increase in face mask sales was primarily attributable to increased sales of our proprietary N-95 Particulate Respirator face mask, manufactured in Salt Lake City, Utah, resulting from increased customer demand associated with the COVID-19 pandemic.”
Even with that news, the action hasn’t really heated up in the stock, with shares moving net sideways over the past week. Over the past month, shares of the stock have suffered from clear selling pressure, dropping by roughly -22%.
Alpha Pro Tech Ltd (NYSEAMERICAN:APT) managed to rope in revenues totaling $29M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 165.7%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($23.3M against $5.9M).
Boon Industries (OTCMKTS:BNOW) bills itself as an innovative bioscience name delivering “environmentally safe products to benefit people and the planet.” At the core of Boon’s product offering is DiOx+, a Chlorine Dioxide Disinfectant Sterilizer.
Chlorine Dioxide has been approved by OSHA, FDA, EPA, CDC, USDA, and DOT. DiOx+ kills 99.9999% of harmful pathogens without dangerous toxic exposure to the user or the environment. The proprietary chemical formulas and processes behind DiOx+ make it ideal for sterilization of mission critical, high value medical equipment and the disinfecting of air and surfaces in laboratory and hospital environments.
Boon Industries (OTCMKTS:BNOW) most recently announced that the company continues to expand the distribution footprint of its DiOx+ project into new territories and verticals.
Justin Gonzalez, CEO, stated, “Boon has completed construction of the initial production facility in Grass Valley, California and is in the final phase of the List-N testing procedure with the EPA. In addition, Boon is aggressively expanding the sales footprint into new regions and vertical industries. Boon Industries has signed two new reseller agreements and has begun shipping DiOx+ under the initial purchase orders with these two new resellers. Boon will deliver DiOx+ to the medical, hospitality, PPE, and agricultural industries. Furthermore, we are in final stage negotiations with our first two General Services Administration (GSA) resellers and are excited about the growth that access to US Federal Agencies will provide to Boon Industries.”
DiOx+ is an activated chlorine dioxide (Cl02) broad spectrum disinfectant developed through a meticulously refined formula that kills 99.9999% of harmful germs—all without dangerous toxic exposure to the user or the environment. Chlorine dioxide is approved for use by U.S. regulatory agencies including OSHA, EPA, FDA, CDC, USDA, and DOT. DiOx+ protects the environment and human health from viruses, bacteria and harmful by-products left by other cleaning sanitizers, without a harsh smell or skin irritation. DiOx+ is 100% degradable, and does not contain harmful ingredients such as Ammonia, Sodium Hydroxide, 2-Butoxyethanol, Methanol or Perchloroethylene.
Boon Industries (OTCMKTS:BNOW) is an environmentally conscious company, and DiOx+ is the first of many environmentally friendly products that outperform common toxic and unsafe products currently in the market today.
Reckitt Benckiser Group PLC – ADR (OTCMKTS:RBGLY) trumpets itself as a company that exists to protect, heal, and nurture in the relentless pursuit of a cleaner, healthier world. The company believes that access to the highest-quality hygiene, wellness, and nourishment is a right, not a privilege.
Reckitt is the company behind some of the world’s most recognizable and trusted consumer brands in hygiene, health, and nutrition, including Air Wick, Calgon, Cillit Bang, Clearasil, Dettol, Durex, Enfamil, Finish, Gaviscon, Harpic, Lysol, Mortein, Mucinex, Nurofen, Nutramigen, Strepsils, Vanish, Veet, Woolite and more. Every day, more than 20 million Reckitt products are bought globally.
Reckitt Benckiser Group PLC – ADR (OTCMKTS:RBGLY) recently announced a much bigger-than-expected rise in third-quarter sales and raised its full-year outlook, as the coronavirus pandemic lifts demand for its cleaning products. According to materials, the British maker of Dettol and Lysol said its plan to rejuvenate sales following years of difficulties may be achieved a year earlier than expected.
“While there is still more work to do, I’m pleased to say that RB today is in much better shape than it was a year ago,” Chief Executive Laxman Narasimhan, who has been in the role for a year, told reporters.
If you’re long this stock, then you’re liking how the stock has responded to the announcement. RBGLY shares have been moving higher over the past week overall, pushing about 3% to the upside on above average trading volume. Shares of the stock have powered higher over the past month, rallying roughly 4% in that time on strong overall action.
Reckitt Benckiser Group PLC – ADR (OTCMKTS:RBGLY) generated sales of $7.1B, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of 2.5% on the top line. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($1.6B against $6.9B, respectively).