Some corporations seem to be absorbing the COVID-19 pandemic better than others.
The International Paper Company of Memphis, TN, the largest purveyor of paper products in the world, is benefiting big time from panic buying triggered by the rapidly spreading novel coronavirus. Bucking the precipitous downward flush in the markets, shares of International Paper (NYSE:IP) gained 16.4% over the course of Friday-the-13th trading.
But International wasn’t the only beneficiary of tragedy. Over that same trading period, both Georgia Pacific (GPX) and Weyerhaeuser actually surpassed IP’s remarkable gain, the former’s shares increasing by an astounding 23.51%, the latter’s by 17.4%. Kimberly Clark (KMB) had a swell day on the floor, too, but took up the rear, rolling out a more modest gain of 9.7%.
Oddly, it seems, when folks are confronted with the onerous specter of being holed up in their homes for a prolonged period of time, the very first thing they worry about is whether they’ll have an adequate supply of tissue to wipe properly after each and every bowel movement.
I witnessed the proof first hand on Saturday, the day after the Paper Industry’s Bullish session at the Exchange. I went to every grocery, drug, discount, and convenience store in town… and was unable to find a single roll of TP on the shelves.
I guess a Bear Market isn’t so bad after all… when that bear is grinning on a package of Charmin.
Rand Bishop (Gimpy Ol’ Norman) is the author of thememoir, TREK: My PeacePilgrimage in Search of a Kinder America. Part One of Bishop’s newserialized satirical e-book novella Option (D):Dosing Donald is now available in Kindle edition.