Small cap biotechs and vaccine makers will likely be among the big swine flu winners out there.
As for the losers? Airline stocks (due to travel restrictions) and pork.
Shares of Smithfield-Farms (SFD) are off over 10% pre-market, and though the company says it’s seen no evidence of swine flu at its Mexican facility, some are sceptical. There’s some sense it could even be ground zero for the problem.
Tom Philpott at Grist reports:
Is Smithfield Foods, the world’s largest pork packer and hog producer, linked to the outbreak? Smithfield operates massive hog-raising operations Perote, Mexico, in the state of Vera Cruz, where the outbreak originated. The operations, grouped under a Smithfield subsidiary called Granjas Carrol, raise 950,000 hogs per year, according to the company Web sit.
On Friday, the U.S. disease-tracking blog Biosurveillance published a timeline of the outbreak containing this nugget, dated April 6 (major tip of the hat to Paula Hay, who alerted me to the Smithfield link on the Comfood listserv and has written about it on her blog, Peak Oil Entrepreneur):
“Residents [of Perote] believed the outbreak had been caused by contamination from pig breeding farms located in the area. They believed that the farms, operated by Granjas Carroll, polluted the atmosphere and local water bodies, which in turn led to the disease outbreak. According to residents, the company denied responsibility for the outbreak and attributed the cases to “flu.” However, a municipal health official stated that preliminary investigations indicated that the disease vector was a type of fly that reproduces in pig waste and that the outbreak was linked to the pig farms. It was unclear whether health officials had identified a suspected pathogen responsible for this outbreak.”