Pfizer, Moderna and AstraZeneca

By rmsadkri | Personal Musings | 8 Dec 2020

I am desperately waiting for these vaccines to be approved. Not because I believe in their efficiency but the world needs something to cling on to come out of this desperate situation we witnessed in 2020. There are multiple arguments for and against these vaccines and how they were tested and trialed. It looks like countries will administer these vaccines by hook or crook to make sure they control their economy and political power.

However, what I want to write today does not include the vaccine discussion. I am more interested in understanding whether these three companies are a good buy for long term investments or not. As a matter of fact, I bought all three stocks a couple of months ago when I realized that these are the three front runners of the vaccine race. I am not an active trader. I am making these purchases to make sure that I make some money on the long run as dividends and also gain from the stock appreciation. Moderna has already doubled its value in the last two months. Pfizer is hovering at around it's all time high and Astrazenaca is slowly creeping up to its value in July.

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As in any other stock market pricing, the stock price of these three companies has already gathered momentum in the last six months when the news broke that these companies could possibly be capturing the global vaccine demand in 2021. Pfizer and Moderna vaccines are suitable for countries that can handle the safety requirements ( -70C freezing) while AZN vaccines may help the other countries that may not have that sophistication. In any case, it looks like all three companies will share the profit derived from the global demand of COVID vaccines. And, the vaccine demand is not a one time event. It is possible that we may need to vaccinate every year or two year like the flu shot which suggests there will be a sustained demand.

The sustainable demand and regular consumption will definitely help these companies to make profit from these vaccines and may help generate income on the long run. And, that's why I think I will include these companies in my Health sector portfolio. All three companies are paying dividends at around 1.5%.

Let's see how this will play out in the long term. But, it looks like I am holding on to them for now.

First published on LeoFinance Beta

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Personal Musings
Personal Musings

My random babbling and musings. Anything under the sun. It could be anything from sports rant to crypto frustration. Bear with me If i start posting politics and discuss how chaotic this universe is.

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