While all the focus has been on the boom which Covid-19 brought to the tech sector, some other industries also benefitted massively from the pandemic. These rare birds are now searching for acquisitions to ensure their “once in an epoch opportunity” (to quote Pfizer’s CEO) is turned to permanent advantage.
Shipping companies have boomed as a result of the unprecedented global lockdown, with the cost of transporting containers going through the proverbial roof. For instance, the share price of JSE and Nasdaq-listed Grindrod Shipping is up five-fold since March 2020. Swollen bank balances have pushed shipping companies into takeover mode, with many even venturing outside their traditional circle of competence.
A more obvious sector to benefit is Big Pharma. Vaccine-maker Pfizer‘s share price has more than doubled since the pandemic began, and the drug maker’s revenue is set to pass a new barrier of $100bn this year. Like the shippers, Big Pharma is also hunting for places to invest the windfall.
___STEADY_PAYWALL___
The big challenge for these winners – and their shareholders – will be resisting the temptation to overpay. Mining companies have taken over a decade to digest consequences of profligacy that followed the commodity boom to May 2008. The pandemic’s nouveau riche would do well to study that experience. That’s unlikely, though. Because, like the rest of us, they’re only human.
More for you to read today:
- Apple Will Let Businesses Use iPhones to Take Customer Payments. Payment processor Stripe will be the first platform to offer the feature to its customers, which include Shopify’s point-of-sale app.
- Investors Gobble Up Dividend Stocks During Market Turbulence. Shift toward dividend-paying stocks is a bid for protection against a slowing economy, rising interest rates.
- New York State to Drop Indoor Mask Mandate. Policy move follows other states’ similar steps to scale back Covid-19 restrictions.
- Nasdaq Jumps 2% as Stocks Extend Rally. Uber Technologies, Walt Disney slated to post results after markets close.
NB FOR YOUR WALL STREET JOURNAL ACCESS…
As a Premium subscriber you are entitled to full membership of wsj.com (normal price $29 a month). Be sure to action your access through the Premium link on the BizNews website. Because of The Wall Street Journal’s credential requirements, be sure to create a password which has at least 8 characters and includes at least one letter and one number – NB it MAY NOT contain any special characters (ie #, !, @ etc). To maintain access to WSJ.com, you MUST enter our partner’s website via BizNews Premium at least once a month. A final PS, if you had previously signed up for WSJ you’ll need to clear the cookies from your device. Our help desk can assist – [email protected].
