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Where to Hide When the Virus Hits Home (GRUB, SDEC, WORK, ROKU)

After the CDC announced a strong advisory on Tuesday, implying that US citizens should start to get used to the idea that coronavirus (aka, COVID-19) will be coming to your local community sometime very soon, markets tanked. But the story isn’t entirely a one-way show.

Here are some stocks that may make you money while you sit inside for the next two months in a hazmat suit, surgical mask, and gloves: GrubHub Inc (NYSE:GRUB), Smart Decision, Inc. (OTCMKTS:SDEC), Slack Technologies Inc (NYSE:WORK), and Roku Inc (NASDAQ:ROKU).

 

GrubHub Inc (NYSE:GRUB) is a clear winner in any prospective US COVID-19 full-scale outbreak. “Honey, let’s go out to dinner! I really want that [insert local restaurant favorite dish here]. Oh, wait, we don’t want to get the plague. Let’s have it delivered!”

The company pulled in sales of $341.3M in its last reported quarterly financials, representing top line growth of 18.6%. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($425.2M against $249.4M).

GrubHub Inc (NYSE:GRUB) bills itself as a company that provides an online and mobile platform for restaurant pick-up and delivery orders in the United States.

The company connects approximately 105,000 local restaurants with diners with diners in various cities. It offers Grubhub, Seamless, and Eat24 mobile applications and mobile Websites; and operates Websites through grubhub.com, seamless.com, eat24.com, and menupages.com.

The company also provides corporate program that offers employees with various food and ordering options, including options for individual meals, group ordering, and catering, as well as proprietary tools that consolidate various food ordering into a single online account.

In addition, it offers Allmenus.com and MenuPages.com, which provide an aggregated database of approximately 440,000 menus from restaurants in 50 U.S. states; Grubhub for Restaurants, a responsive Web application that can be accessed from computers and mobile devices, as well as Grubhub-provided tablets; point of sale (POS) integration, which allows restaurants to manage Grubhub orders and update their menus directly from their existing POS system; and Website and mobile application design and hosting services for restaurants, as well as technology and fulfillment services, including order transmission and customer relationship management tools.

 

Smart Decision, Inc. (OTCMKTS:SDEC) may seem like an odd choice for this list. But it represents an interesting emerging theme in the cannabis, hemp, and CBD market sector: quality assurance and a generalizable shopping assistance tool for new adopters. If the virus spreads across the US, lots of people will turn to traditional medicine and big pharma.

But there’s a growing contingent of folks who have lost some faith there, and want a natural way to boost immune system functionality, stay well-rested, de-stress, and maintain healthy sleeping patterns. And those folks may want to rely on ecommerce rather than venturing out to a CBD shop at the mall. SDEC is turning perpendicular to the whole game and becoming a marketing and branding tool for producers and a decision algorithm for consumers.

Smart Decision, Inc. (OTCMKTS:SDEC) bills itself as a company developing a Patent Pending CBD algorithm to help consumers navigate the extremely complex CBD marketplace. The company is also now working to align itself as a top advocate and force for consumer protection.

CBD is an extremely complicated shopping experience. There exists a vast set of permutations in every consumer decision step.

New adopters end up lost in confusion and frustration, often hesitating or abandoning ecommerce shopping carts to the distress of producers and sellers.

Smart Decision is developing a platform and tools designed by MIT-trained AI and computational data engineers with the capacity to provide consumers with a more positive and confident shopping experience, and to help producers consumers connect on the playing field of CBD ecommerce.

And, in its most recent release, we sense an emerging mission by the company to become a standard-bearer and flag-carrier for the instantiation of a sweeping quality assurance revolution in the CBD marketplace. That has positive shareholder value implications as well. It’s a great branding move.

The stock is up 500%+ so far in 2020 as the smart money finds it.

 

Slack Technologies Inc (NYSE:WORK) is a simple idea in this context: more virus fear means more nesting and more companies willing to let in-office workers work from home. Slack’s model is predicated on coordinating teams of people in cyberspace when they can’t be working in the same room.

The company managed to rope in revenues totaling $168.7M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 59.7%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($774.1M against $405.5M).

Slack Technologies Inc (NYSE:WORK) frames itself as a business technology software platform in the United States and internationally.

Its platform brings together people, applications, and data, as well as sells its offering under a software-as-a-service model.

Slack is where work happens. Slack is a new layer of the business technology stack that brings together people, applications and data—a hub for collaboration where people can effectively work together, access critical applications and services, and find important information to do their best work. People around the world use Slack to connect their teams, unify their systems and drive their business forward.

WORK has had a rough past week of trading action, along with most everything else, with shares sinking something like -3% in that time. That said, chart support is nearby and we may be in the process of constructing a nice setup for some movement back the other way. Shares of the stock have powered higher over the past month, rallying roughly 33% in that time on strong overall action.

 

Roku Inc (NASDAQ:ROKU) is a relatively straightforward COVID-19 investment premise: if folks decide to not the leave the house for 6 weeks, they’re probably going to need some in-home entertainment options. ROKU is a diverse streaming entertainment platform.

Naturally, we might put DIS here for Hulu, or Amazon for Prime. But we went with ROKU. You get the point. People will be doing a lot of sitting around and watching stuff if we end up self-quarantining for the better part of the next couple months. ROKU should benefit while airlines, casinos, oil drillers, mall REITs, and lots of other stuff goes into the tank.

Roku Inc (NASDAQ:ROKU) operates a TV streaming platform. The company operates in two segments, Platform and Player. Its platform allows users to discover and access various movies and TV episodes, as well as live sports, music, news, and others.

It also provides advertising products, including videos ads, brand sponsorships, and audience marketplace program; and manufactures, sells, and licenses TVs under the Roku TV name. In addition, the company offers streaming media players and accessories under the Roku brand name; and sells branded channel buttons on remote controls.

It provides its products and services through retailers and distributors, as well as directly to customers through its Website in the United States, Canada, the United Kingdom, France, the Republic of Ireland, Mexico, and various Latin American countries.

The stock has suffered a bit of late, with shares of ROKU taking a hit in recent action, down about -7% over the past week. Over the past month, shares of the stock have suffered from clear selling pressure, dropping by roughly -6%.

Roku Inc (NASDAQ:ROKU) managed to rope in revenues totaling $411.2M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 49.1%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($517.3M against $358.3M).

Published by Benjamin Roussey

Benjamin Roussey is from Sacramento, California. He has two master’s degrees and served four years in the U.S. Navy. His bachelor’s degree is from CSUS (1999) where he was on a baseball pitching scholarship. His second master’s degree is an MBA in Global Management from the University of Phoenix (2006). He has worked for small businesses, public agencies, and large corporations. He has lived in Korea and Saudi Arabia where he was an ESL instructor. Benjamin spends his time in between Northern California and Cabo San Lucas, Mexico, committing himself to his craft of freelance and website writing. http://www.facebook.com/ben.rouss

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