Road to Recovery: Stock Hotlist for The Week of May 4th, 2020

Here we go again.

After weeks of upside on hope, markets slipped on Trump Administration threats against China.  In fact, President Trump said he could block a government retirement fund from investing in Chinese stocks, and to tack on new tariffs over the coronavirus issue.  

“The negative sentiment was set by comments from Trump on Thursday that he was concerned about China’s role in the origin and spread of the novel coronavirus and that his trade deal with China was now of secondary importance to the pandemic. He threatened new tariffs on Beijing, as his administration crafted retaliatory measures over the outbreak,” says Reuters.

While nothing is a guarantee at this point, there is one certainty.

“The last thing the financial market needs now as it grapples with COVID-19 is a renewal of the trade war between the U.S. and China,” said Derek Halpenny, the head of global market research at MUFG, as quoted by Bloomberg. “Given the scale of the COVID-19 impact there is certainly a high risk of geopolitical tensions escalating considerably as lockdowns reverse, and now this could include the U.S. imposing additional trade tariffs on China.”

As we wait to see what happens next, here are some of the top stocks to watch.

Opportunity No. 1 – Moderna Inc. (MRNA)

We highlighted this opportunity just last week, as it traded at $50.08.  While it did pull back to $48.71, there’s plenty of upside remaining here.  MRNA just signed a 10-year agreement with Lonza for large-scale manufacturing of its vaccine candidate.  According to MarketWatch, “The companies plan to set up manufacturing facilities in Switzerland, where Lonza is based, and the U.S., where they plan to make the first batch of the investigational vaccine by July.”

Opportunity No. 2 – Live Nation Entertainment (LYV)

While Live Entertainment (LYV) did pull back late last week, keep an eye on it.  After a brutal pullback, it appears the stock is beginning to bottom out.  Helping, the Saudis Public Investment Fund just took a $500 million stake in the stock, which gives it a stake of 5.7%.  The head of Saudi Arabia’s sovereign wealth fund Yassir al-Rumayyan has said the Fund is looking into opportunities in aviation, oil, gas, and entertainment, says Reuters.

Opportunity No. 3 – Zynga Inc. (ZNGA)Video game stocks are still pushing higher with “stay at home” orders, and as the World Health Organization says to play for video games.  “We’re at a crucial moment in defining outcomes of this pandemic. Games industry companies have a global audience – we encourage all to #PlayApartTogether. More physical distancing + other measures will help to flatten the curve + save lives,” tweeted Ray Chambers, U.S. ambassador to WHO.


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