The coronavirus threat to lives and the global economy continues to grow by the day, causing serious panic among investors and sparking broad selloff in global stocks. However, there are a few stocks that are actually riding on the coronavirus outbreak. These are stocks whose works are associated with efforts to stop the deadly virus. GeoVax Labs Inc (OTCMKTS:GOVX) is one of them.
GeoVax stock soared more than 48% in the last session to perch at $0.44. Notably, the stock surged on huge volume too. More than 4.1 million GeoVax shares changed hands, marking the biggest single-day volume we’ve seen for the stock this year.
GeoVax stock jumped as the World Health Organization (WHO) warned that the coronavirus is turning out to be far more deadly than previously thought. WHO now estimates the coronavirus mortality rate at 3.4%, significantly higher than the previous estimate of about 2.0%.
The virus started spreading in China in a city known as Wuhan. It has now hit 70 countries, with more than 90,000 cases and over 3,000 deaths reported. The virus continues to spread and kill people as the United States, Italy and Iran have continued to report new cases and deaths.
The outbreak is also taking its toll on global business activities. Airlines have suspended flights and companies like Walt Disney Company (NYSE:DIS), McDonald’s Corporation (NYSE:MCD) and Starbucks Corporation (NASDAQ:SBUX) have closed certain businesses in China in a bid to curb the spread of the coronavirus.
Moreover, tech companies like Alphabet Inc. (NASDAQ:GOOGL), Amazon Inc. (NASDAQ:AMZN) and Facebook Inc. (NASDAQ:FB) have been forced to restrict travel for their staff and cancel important events in response to the virus outbreak.
But such disruptions to businesses threaten to weigh on the global economic growth and every government is concern. The world is now scrambling to stop this deadly virus and GeoVax has emerged as a potential solution to the problem.
In a short while, we’ll see why this may be the golden moment to bet on GeoVax stock. But before we get into that, here is a brief profile of GeoVax for the benefit of investors who may be coming across this company for the very first time.
About GeoVax Labs, Inc. (OTCMKTS:GOVX)
GeoVax Labs is an American biotechnology company headquartred in Atlanta, Georgia. The company has been around since 1988 and its work is focused on developing vaccines for infectious diseases. Currently, the company is working on vaccines for HIV, Ebola virus, Zika virus and cancers. Recently, GeoVax expanded its work to include coronavirus vaccine.
This is your moment to cash in on coronavirus with GeoVax stock
Before we look at how GeoVax is positioned in the current coronavirus situation, some background information would help investors who have this stock on their watchlist.
GeoVax has a history of making big moves whenever there is a major outbreak of an infectious disease. In 2014-2015 period, investors made good money on GeoVax stock in the wake of the Ebola virus outbreak. GeoVax was one of the biotechnology companies involved in the efforts to stop the spread of the deadly virus. GeoVax stock soared after the company announced that it was working on vaccines against the Ebola virus.
The 2015-2016 period was another great time for GeoVax investors. That was the period the world was grappling with the outbreak of Zika virus. GeoVax soared after the company announced that it was developing Zika virus vaccine.
GeoVax is one of the biotechnology companies leading the efforts to save the world from the deadly coronavirus (Covid-19). GeoVax is collaborating with Chinese biotechnology company BravoVax to develop a vaccine against the coronavirus. BravoVax is based in the Chinese city of Wuhan, the epicenter of the virus outbreak.
“We are extremely pleased to begin working with BravoVax on this important and critical project, focused on minimizing the threat and impact of 2019-nCoV [coronavirus],” GeoVax CEO David Dodd commented about the collaboration.
Notably, GeoVax is now on the list of the biotechnology companies whose coronavirus candidate vaccines the World Health Organization has recognized.
If history is anything to go by, GeoVax Labs look poised to cash in big on the coronavirus outbreak. At current levels, the stock is still way off its 52-week highs, and right now you have a chance to scoop in at a steep discount.
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Disclosure: We have no position in GeoVax Labs and have not been compensated for this article.