Many stocks and shares in the sector most penalized by the crisis. But that could recover.
A potentially risky investment
The conditional is a must. The stocks and shares of the sector most penalized by the crisis could recover. The unknowns, however, are many. And they don’t necessarily play for what is currently a potentially risky investment. The world economy has entered a crisis with Covid-19. Needless to deny it. Recently, however, some macro data from China (oddly enough) has turned out better than expected. The last in order of time: the PMI Caixin which exceeded 50.7 points in May. Or beyond the critical threshold that divides growth from contraction.
Change of trend
But those who are suspicious of the reliability of the official numbers of Beijing, can see the confirmation of a change in the trend also from Europe and the US. Again with PMI manufacturing data. 39.4 points for the former and 39.8 for the latter. Far from the 50 Chinese, but undoubtedly better than the previous ones and recovering. So it is reasonable to think that, slowly, something is starting to change. In addition, the progressive reopenings could reveal a second wave which, feared, may not recur. Almost. In any case, someone is already starting to think that it may be the case to invest in stocks and shares of the sector most penalized by the crisis: the travel sector. Especially taking advantage of a pent-up demand, just at the turn of the beginning of summer.
Securities and shares of the sector most penalized by the crisis (but which could recover)
Tourism is a strong and powerful industry worldwide. And while on the one hand international flights remain limited, internal travel is now allowed everywhere. An example? Las Vegas returns to the track on June 4th. Just when it was long feared that casinos and amusement parks should say goodbye to the most profitable season. Obviously there will be no chaos of the past years and the numbers of earnings and revenues may be lower, but the stocks and shares of the sector most penalized by the crisis, now, could recover. Maybe not everyone knows that Canadian Newgioco Group (NASDAQ: NWGI) was actually founded in Italy in 2000.
The market niche
Its market niche is online gaming and sports betting. Which leads to a threefold advantage: it can rent its systems to various casinos. It can take advantage of online even in the event of a crisis and therefore lockdown, it can take advantage of the worldwide growth of virtual sports, the famous e-games that are already competing with professional ones.