Lakeland Industries has been cashing in on the spread of the Ebola virus and the fear that has come with it.
The stock is up 35% in early Thursday trading following management’s Wednesday evening update on Ebola-related business activity.
“Lakeland has secured new orders relating to the fight against the spread of Ebola,” management said in a press release. “The aggregate of orders won by Lakeland that are believed to have resulted from the Ebola crisis amount to approximately 1 million suits with additional orders for other products, such as hoods, foot coverings, and gloves.”
So far, about 5,000 people have been killed in the recent outbreak of the virus. Most of those deaths have occurred in West Africa in Liberia, Sierra Leone, and Guinea.
In anticipation of demand, management cranked up its production capacity.
“Monthly production capacity for sealed seam ChemMAX and MicroMAX protective suit lines has increased by nearly 50% from August 2014, prior to Ebola-related product demand, to October 2014, and is on track for a 100% increase from that level by January 2015, with the ability for additional increases as needed,” management said.
While most companies warn investors about the negative risks that come with fear-inducing phenomena like viral outbreaks, Lakeland sees dollar signs. “Ebola” is mentioned 12 times in this brief press release.
Here’s a look at the premarket trading via MarketWatch: