The Vaccine Distribution Portfolio (MRNA, XPO, ATVK, FDX)

Every theme can be understood in terms of a basket of stocks with different roles in the ecosystem the makes up the theme.

In the case of vaccinating the whole world against COVID-19, that basket is made up of vaccine producers, logistics companies, hi-tech refrigeration and bio-storage names, and transportation stocks.

We are now undertaking the biggest vaccination mission in world history, impacting billions of people using billions of dollars, and such a basket can reasonably be expected to outperform.

With that in mind, we take a look at a few of the more interesting names involved in the vaccine distribution theme, including: Moderna Inc (NASDAQ:MRNA), XPO Logistics Inc (NYSE:XPO), Ameritek Ventures (OTCMKTS:ATVK), and FedEx Corporation (NYSE:FDX).

Moderna Inc (NASDAQ:MRNA) is a clinical stage biotechnology company that develops therapeutics and vaccines based on messenger RNA for the treatment of infectious diseases, immuno-oncology, rare diseases, and autoimmune and cardiovascular diseases. It has a leading approved COVID-19 vaccine now in distribution around the world.

It has strategic alliances with AstraZeneca, Merck & Co., Vertex Pharmaceuticals, Biomedical Advanced Research and Development Authority, Defense Advanced Research Projects Agency, and Bill & Melinda Gates Foundation, as well as the Coalition for Epidemic Preparedness Innovations.

Moderna Inc (NASDAQ:MRNA) just announced that the European Commission purchased an additional 150 million doses of the COVID-19 Vaccine Moderna, which are scheduled to be delivered in the third and fourth quarter of 2021. This brings its confirmed order commitment to 310 million doses for delivery in 2021. Under the terms of the agreement, the European Commission has the option to purchase an additional 150 million doses to be delivered in 2022.

“We appreciate the European Commission’s confidence in Moderna and our mRNA platform. Today’s purchase of an additional 150 million doses brings their total order of our COVID-19 vaccine to 310 million for delivery in 2021,” said Stéphane Bancel, Chief Executive Officer of Moderna. “The European Commission is in discussions with us on how to prepare for 2022, including addressing potential variants, and the Commission has an option for an additional 150 million doses for delivery in 2022. Moderna is committed to working relentlessly to bring to market vaccine boosts with the relevant variants to address this global pandemic.”

While this is a clear factor, it has been incorporated into a trading tape characterized by a pretty dominant offer, which hasn’t been the type of action MRNA shareholders really want to see. In total, over the past five days, shares of the stock have dropped by roughly -5% on above average trading volume. All in all, not a particularly friendly tape, but one that may ultimately present some new opportunities. Shares of the stock have powered higher over the past month, rallying roughly 31% in that time on strong overall action.

Moderna Inc (NASDAQ:MRNA) generated sales of $157.9M, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of 138% on the top line. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($3.3B against $1.5B).

XPO Logistics Inc (NYSE:XPO) trumpets itself as a top ten global logistics provider of cutting-edge supply chain solutions to the most successful companies in the world. The company’s CEO was recently quoted in a Barron’s article noting that it is playing a big role in the vaccine distribution process given that the producers are all customers of XPO.

The company operates as a highly integrated network of people, technology and physical assets in 30 countries, with 1,499 locations and approximately 97,000 employees. XPO uses its network to help more than 50,000 customers manage their goods most efficiently throughout their supply chains.

XPO Logistics Inc (NYSE:XPO) recently announced that it has been named a World’s Most Admired Company for 2021 by Fortune magazine. XPO has been recognized by Fortune as a World’s Most Admired Company every year since 2018.

Brad Jacobs, chairman and chief executive officer of XPO Logistics, said, “We thank Fortune for once again naming XPO to this select group of highly regarded companies. We’re honored to be recognized for excellence in areas that reflect our commitment to stakeholders, including financial soundness, people management, social responsibility and the quality of our services.”

Even with that news, the action hasn’t really heated up in the stock, with shares moving net sideways over the past week. XPO shares have been relatively flat over the past month of action, with very little net movement during that period.

XPO Logistics Inc (NYSE:XPO) pulled in sales of $4.7B in its last reported quarterly financials, representing top line growth of 12.8%. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($2.1B against $5.2B, respectively).

Ameritek Ventures (OTCMKTS:ATVK) bills itself as a group of companies that provides various world-class software and hardware products and services beneficial to businesses, organizations, and governments, including Ditto Mask (innovative custom-fit sports face masks for germ protection), Angmum Inc. (innovative robotics, machine learning, and communication), and FlexFridge (medical industry vaccine and organ transportation and onsite storage).

FlexFridge, a “smart fridge”, is believed to have the greatest impact on the market in 2021. FlexFridge offers four cubic feet, foldable, portable refrigeration storage on wheels with an eight-hour battery life and is expected to play a major role in administering COVID-19 vaccinations at these vaccination sites. Furthermore, FlexFridge is also utilized in the transport of organs for organ recipients.

Ameritek Ventures (OTCMKTS:ATVK) shares were up over 7,000% since October. But the stock has experienced a pullback from about $0.30/share and may be worth a closer look at current levels.

FedEx Corporation (NYSE:FDX) provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce and business services. According to reports, FDX has been and will continue to be a major player in the vaccine roll-out.

With annual revenue of $75 billion, the company offers integrated business solutions through operating companies competing collectively, operating collaboratively and innovating digitally under the respected FedEx brand. According to company materials, FedEx inspires its nearly 600,000 team members to remain focused on safety, the highest ethical and professional standards and the needs of their customers and communities.

FedEx Corporation (NYSE:FDX) most recently announced the launch of its ninth annual Small Business Grant Contest. The contest offers grants and services to 12 U.S.- based small businesses, distributing a collective prize pool of more than $250,000. Winners also receive FedEx Office® print and business services credit to help support their small business. In addition, they join a community of small business owners who share peer insights. The 2021 FedEx Small Business Grant Contest prize packages include:

“Running a small business isn’t easy, and this year, it’s been tougher than ever, which is why FedEx continues to champion and support these entrepreneurs,” said Jenny Robertson, senior vice president Integrated Marketing and Communications at FedEx. “Whether they use the money to build a better website or to buy new equipment, we want to help them write the next chapter of their story. When it comes to helping small businesses succeed, we always want to be part of that story.”

Even with that news, the action hasn’t really heated up in the stock, with shares moving net sideways over the past week.

FedEx Corporation (NYSE:FDX) managed to rope in revenues totaling $20.5B in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 18.3%, as compared to year-ago data in comparable terms. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($8.3B against $12.1B, respectively).

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