China Pharma Holdings, Inc. (AMEX: CPHI) is taking off like a rocket in pre-market trading over 80%. The rapid stock climb comes after the CPHI said it had launched mask production lines. CPHI said the masks are being produced in a 100,000 class cleanroom. The class of air cleanliness refers to the certification classification by maximum particle concentration limits. Importantly, Helpson is a cGMP, certified pharmaceutical manufacturer. This helps ensure health and safety.
In the press release, China Pharmaceutical Holdings said that its subsidiary, Hainan Helpson Pharmaceutical & Biotechnology Co., has launched mask production lines.
Ms. Li Zhilin, President and CEO of China Pharmaceutical, said, “On the one hand, although the COVID-19 outbreak has been controlled to a certain extent in China currently, the government and the public’s awareness of epidemic prevention is still stable. And activities such as work resumption and schools re-open create a high demand for protective masks. On the other hand, the global outbreak of COVID-19 has led to a surge in demand for protective equipment such as masks. In this circumstance, we take the time to launch mask production lines, adhering to our corporate mission of providing basic medical protection measures to the general public, and fulfilling our social responsibility with practical actions. ”
Is CPHI stock a buy?
Many investors are looking for a stock to buy because of coronavirus. Unfortunately, momentum stocks like CPHI are high risk and frequently drop as fast they rise. For this reason, CPHI stock is not a buy. However, investors fortunate enough to have bought CPHI may want to take some profits at the peaks.
Stock Market Today
Yesterday, US President Donald Trump said that some states could remove social restrictions and open their economy by May 1; however, he did not specify which regions were in question. However, the plans of the White House may meet with opposition from local authorities. On Monday, the governors of the six northeastern states have already announced that they will form a working group to monitor the epidemic and develop their quarantine weakening plan. Yesterday, it became known that the US administration had agreed with the airline companies American, Delta, United, and Southwest to provide the industry with assistance in the amount of $25 billion in exchange for maintaining their employees’ wages and jobs until at least until September 30.
The March US retail sales data released today were ambiguous. Total sales decreased by 8.7%, which exceeded market expectations (–8.0). However, core sales excluding automobiles fell by 4.5%, which was better than the expected decrease of 4.8%.
Due to a lack of significant economic releases, investors are focused on the consequences of the coronavirus epidemic on the European economy. According to German media reports, Germany is preparing to extend quarantine until May 3. Still, it could be partially eased if Chancellor Angela Merkel and representatives of local administrations make such a decision at today’s meeting. The Danish authorities decided to open schools for children under 11 years old. This country was one of the first to be quarantined, and now it is one of the first to weaken it. Representatives of the European Parliament and the European Commission said that European companies and workers would not return to regular work until a vaccine or a cure for COVID-19 appears. Still, they have begun to develop a simple plan to ease social distance rules to support the bloc’s economy.
Investors are focused on the situation with the coronavirus epidemic in the country. Yesterday, the death toll from the disease exceeded 12K, and the number of infected tends to 100K. Under these conditions, the new Labor leader, Sir Keir Starmer, called on the government to announce a strategy for further action since the quarantine regime had not yet led to a reduction in the epidemic. In an interview, Starmer said that before weakening quarantine measures, mass testing of citizens for coronavirus should be carried out. In case of a decrease in the incidence, the first thing to do is open schools. Government representatives noted that the main task now is to ensure that the population is quarantined, and further steps will be possible only after the epidemic has passed its peak.
Japanese Prime Minister Shinzo Abe said that his government’s stimulus package for 108.2 trillion yen would lead to the growth of the Japanese economy by 3.8% this year. Also, it became known that the Ministry of Agriculture of Japan plans to introduce financial incentives for those dismissed due to the coronavirus epidemic who decide to switch to work in the agricultural industry. Now, it is experiencing a shortage of personnel, as many foreign specialists could not arrive in Japan due to the closure of borders.
AUD came under pressure after the publication of negative data on the consumer sentiment index from Westpac. The index decreased by 17.7% and amounted to 75.6 points, which is the weakest indicator since 1991. The Australian economy continues to suffer damage from the coronavirus pandemic, which adversely affects consumer sentiment, which could lead to a significant reduction in sales and lower inflation.
Oil prices today continued to decline. Prices have come under pressure amid a statement by representatives of the International Energy Agency, who believe that the new deal to reduce oil production will not be able to ensure the consumption of already accumulated oil reserves for several weeks. Also, IEA experts predict a decrease in global oil demand in at least the first half of this year. Additional pressure on the quotes is provided by the EIA report data, which recorded an increase in US black gold reserves by another 13.143 million barrels.