China has acted badly in the past, but this time could really be it’s undoing. According to reports, China was aware of some sort of epidemic in the city of Wuhan in November. NOVEMBER. A short time after, they knew there was a new kind of coronavirus on the loose. You would think given what happened in China with the SARS coronavirus in 2002, that they would act differently this time.
They didn’t act differently. They acted the same or worse, hiding information from their own people and then the rest of the world. Today they announced they will expel US reporters of three major US news outlets; The New York Times, Washington Post and Wall Street Journal over their reporting on the pandemic.
This is a bad look, but add that to the economic damage that is being done to the world and specifically to the U.S., this lack of transparency could hurt trade. Maybe worse than that for China, private industry is likely to continue whatever supply chain shift they began during the trade war and the government is likely to legislate that medical supplies are either made entirely in the U.S. or at least have a very diversified supply chain.
There is no doubt China will have a slowdown and likely a recession this year, but the damage may be longer-term. This bad behavior could mean the end of the great economic story that was China.
UNI Looks Like a Good Value
UnitedHealth Group Inc (NYSE: UNH) looks like it could add some value to a portfolio. There have been several high volume days since about Feb 24th and it’s now down 20% from it’s 52-week high. An official bear market has hit the stock.
But the analysts aren’t moving on this one yet. Of 18 analysts, 13 have it as a strong buy, 4 as a hold and one as a moderate buy and that has only changed slightly in the last 3 months, by losing one analyst.
This healthcare insurer might have seemed like a problem before with the COVID-19 outbreak likely to hit profits in the short-term, but these crisis -type events do not keep insurers down for long historically.
The chart is in a bear market, but it’s a good bet that when this thing gets under control, this will be one of the first stocks to recover as they adjust premiums to recoup losses. The company has a solid balance sheet to begin with, it should do well.
Tesla Begins Delivering Model Ys Despite the Virus
Well, they did it. Tesla Inc. (NASDAQ: TSLA) has completed the pseudo-acronym, “S3XY” by beginning deliveries of the crossover vehicle they named the Model Y. So officially, the Y joins the Model S, Model 3 and Model X in people’s driveways. It’s a S3XY EV world out there.
The Model Y is essentially a crossover version of the Model 3, with a taller roof and a hatchback instead of a trunk. The crossover is also longer and a touch taller than the Model 3. The two vehicles share many parts, including a large dash-touchscreen that takes the place of nearly all analog controls. In back, though, the Model Y offers more cargo space. Tesla has also said it will offer an optional third row, bringing seating capacity up from five to seven.
Tesla continues to work and build cars while other businesses shut down, whether voluntarily or by ordinance. Tesla’s electric vehicle assembly plant in Fremont, California, where the Tesla plant employs about 10,000 workers, has been deemed an “essential business,” a county spokesman told the Los Angeles Times, and will continue to operate as usual. This is ignoring a “shelter-in-place guidance” issued by six San Francisco Bay Area counties earlier in the day.
Tesla CEO Elon Musk told employees in an email Monday, “My frank opinion is that the harm from the coronavirus panic far exceeds that of the virus itself,” he wrote. “I will personally be at work, but that’s just me.” He also told them “If you feel the slightest bit ill or even uncomfortable, please do not feel obligated to come to work”. Elon ain’t scared, should we be?
As the coronavirus continues to spread rampantly, food delivery services are pumping out deals daily to keep their businesses alive. Although it is unclear whether the virus can be spread through food, you may want to think what you’re ordering and where it’s from.
Tests have shown that a food item exposed to a temperature of 145 degrees for at least 4 minutes reduces the contamination by a factor of 1,000. That being said, it doesn’t mean it’s eliminated. And if you’re eating a salad or anything cold prepared by someone other than yourself, fugetaboutit.
Grocery stores are still open to the public, and the majority of us are now working from home or jobless until further notice. You’ve got lots of time on your hands, so there’s no better time than now to get on YouTube and teach yourself how to cook!
Helping the community
There is a multi-level hydroponic (no soil, just water) garden at the Martin Luther King Jr. Educational Campus that is pumping out over 700 pounds of produce each month to be used to feed more than 2,000 students on their campus! What’s left is sold to neighboring communities so there’s no waste.
The garden has great support from companies, colleges and some very well-known people. Helen Rosenthal, the founder of the garden and Teens for Food Justice-TFFJ, a non-profit organization, through this garden is able to teach students entrepreneurship, and to build a healthy relationship with food and its sustainability.