If the inimitable George Carlin were alive today, he would probably bemoan that everybody is yapping about their rights. Frankly, I wish in this day of the novel coronavirus that people would exercise the right to remain silent. But it’s this dynamic that also helps Inovio Pharmaceuticals (NASDAQ:INO). Once a speculative bet with a suddenly relevant narrative, INO stock is steadily looking less speculative.
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That’s not to say there aren’t risks associated with Inovio. For years, shares have languished under the weight of mediocrity as the biotechnology firm struggled to gain attention from the saturated competition. Then, a startling epidemic broke out in Wuhan, China. However, within hours of publication of the novel coronavirus’ genetic sequence, Inovio was able to develop a vaccine candidate.
To be fair, this claim has come under fire from critics. However, there’s no disputing the bullishness in INO stock. It’s easily one of the surprising hits this year, jumping nearly 740% in the first half. Of course, with so much enthusiasm baked into the share price, prospective buyers don’t want to end up holding the bag. But this might be less of a concern given the present social environment in the U.S., the pandemic’s epicenter.
Just as we began to flatten the infection curve and as states began reopening their economies, new daily cases ticked higher. Pretty soon, the increase was too conspicuous to ignore. Today, the virus has broken out into apparently a second wave. According to Dr. Anthony Fauci, we’re actually still in first wave.
During this time, several entitled individuals came out of the woodwork to reveal their expertise in the U.S. Constitution. From Costco (NASDAQ:COST) to Target (NYSE:TGT) to wherever Americans congregate, they openly defied reason and common sense.
And this makes INO stock an intriguing idea.
INO Stock to Continue Rising on Vaccine Desperation
To be fair to the majority of Americans, I’m glad to see everyday folks take this pandemic seriously. However, seemingly every other day, someone has a meltdown about not wanting to wear a mask. Of course, this is where the inevitable discussion – or incoherent ranting, more like it – about Constitutional rights comes into play.
But this is not the only space where the Founding Fathers’ pivotal document has catalyzed extreme behavior shifts. As I’ve been detailing for InvestorPlace throughout this crisis, gun sales have soared to staggering record levels. Many if not most of these Second Amendment purchases are by first-time buyers.
To summarize, until we have the overwhelming majority of Americans willing to practice mitigation protocols, this pandemic could potentially get much worse. Combine that with ever-present protests for social justice, and we’ve never had a time when a vaccine was so desperately needed. With that, INO stock ceases to be a flash in the pan.
I can’t stress this enough – we probably need full-scale cooperation to defeat Covid-19. But so long as Americans would prefer to buy guns than wear masks, this virus will stay with us for longer than many anticipate. While it’s cynical, if I had to bet, I wouldn’t place my wager on American unity when we lack it on so many levels.
Thus, as America gets more chaotic, I can see a case where INO stock keeps ticking higher. If you look at its technical chart, that’s exactly what it’s doing.
Further, as we move toward the November presidential election, I anticipate ramped up division. When you have key conservative figures implying that the coronavirus is a politically motivated hoax, cooperation is the last thing to expect. And again, that’s good news for INO stock.
Economic Reality Checks to Further Support Inovio
Before you send me hate mail, I’m not picking on one particular political party or ideology. With the coronavirus resurgence, there’s plenty of blame to go around. Certainly, the uproar over face masks isn’t helpful. But neither are young people attending “Covid-19 parties,” nor are widescale protests, no matter how noble the cause.
However, the underlying theme here is the lack of unity. If we can’t all agree to set aside trivial arguments about Constitutional rights, wear masks, and practice social distancing to protect our fellow Americans, there’s not much hope for us – unless we all want to invest in INO stock, perhaps.
Given the inability for us to get anything done in the age of the coronavirus, we might as well buy a stake in Inovio. Because the escalating crisis will probably catalyze another economic calamity. With powerhouse states like California rolling back their reopening, Americans will again suffer a trifecta of pain – health concerns, financial woes and social dissonance.
Subsequently, we should not only see more upside for INO stock but a healthier safety margin as well. Unlike prior years, investors will probably exercise more patience rather than nitpicking every detail of a clinical trial. Such is our desperate plight that perhaps could have been avoided.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. As of this writing, he did not hold a position in any of the aforementioned securities.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.