5 Stocks for the Zombie Apocalypse
By now, most have probably heard the reports of the man in a zombie-like state shot dead in the process of eating another man's face.
Although the attack was reportedly from the inhalation of a type of bath salts, it may be a sign that this is the beginning of the end--that humanity would do best to prepare for a coming zombie apocalypse.
The following is a list of five stocks traders might consider with this grim scenario in mind:
Dell (NASDAQ: DELL) if there is a stock that best symbolizes dead money, Dell might be it. Shares have been battered in recent weeks, particularly following the company's earnings report which missed analyst expectations. With the increasing onslaught of tablets, Dell's consumer sector might see further pressure. Consumers seem to be opting for Apple's (NASDAQ: AAPL) iPad over Dell's laptops, and that could get worse, particularly with Google (NASDAQ: GOOG) reportedly launching its own tablet sometime this summer.
Dell may have a chance for redemption with Microsoft (NASDAQ: MSFT) releasing Windows 8 later this year. The company is also attempting to focus more on business customers more-so than retail, though this remains a minority stake of Dell's overall business.
iShares MSCI Japan Index (NYSE: EWJ) is perhaps the most well-known of the Japanese ETFs. The ETF is seen as a way to get exposure to Japan's underlying economy. Interestingly, it has large exposure to Japan's "zombie" banks, making it an ideal zombie play. EWJ has a 16.9% weight to Japan's financial sector, its third largest weighted holdings.
Research in Motion (NASDAQ: RIMM) may be best described as undead. Although the company remains alive, it appears virtually certain that it cannot survive in its present state. Whether that takes the form of a company breakup, a sale or an outright bankruptcy, RIM as it was only a few short years ago is most certainly dead.
On Tuesday, RIM was halted after-hours. The company reported that it had hired investment banks to review strategic alternatives. It also altered its guidance, reporting that it would lose money this year while analysts had been expecting the company to report a modest profit.
Smith & Wesson (NASDAQ: SWHC) has traded lower since April, moving down as the broader market has sold off. Still, is there a better stock to own in the midst of a zombie apocalypse? The gun-makers offerings would certainly come in handy. Shares are currently trading near $6.50, down about 3.50% on the session.
SPDR Gold Trust (NYSE: GLD) gold has long been known as the "apocalypse trade" as many gold bulls have argued that the age of fiat currencies would soon be coming to an end. The markets have been battered today, as the Dow has dropped over 200 points. Gold benefited, and gold futures are currently trading above $1600 an ounce.
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