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How to Profit from Beijing Pollution

Written By Brian Hicks

Posted May 27, 2008

Editor’s Note:

While it’s not a common occurrence, we’ll feature speculative buying opportunities in your free Wealth Daily.  For weekly and monthly recommendations, visit for a list of our premium services.

Today’s Wealth Daily

It was January 2004 when the World Health Organization warned of bird flu outbreaks, fearing that the disease could latch on to normal human influenza virus, and spread among the human population.

One stock jumped from about $1.50 to about $3.

In 2005, the bird flu outbreak reached Europe, as feared.  It was the same virus found in wild birds in Mongolia and Qinghai Lake in China, which killed 60 people in Asia. 

It was the same year that Hurricane Katrina ravaged New Orleans, where residents were advised to use the 3M N95 respirator face masks when cleaning up flooded homes because of mold, which can cause respiratory irritation.

One stock jumped from $2.50 to $3.50.

In 2006, the fears of a "coming influenza pandemic" were still making the rounds, sending that one stock from $2 to $3.50.  That stock was Alpha Pro Tech (APT:AMEX), the company that makes and sells protective apparel and related products, including face masks and eye shields to control infection.

But while bird flu outbreaks may not be making major headlines these days, protective products, even those made by APT, could be under heavy demand heading into the 2008 Summer Olympics and post-China earthquakes.

Days after a 7.9-magnitude earthquake hit China’s western provinces, the death toll has risen above 32,000, with expectations for 50,000.  But those that survived the quake still face conditions that threaten their lives.  While China says no disease outbreaks have emerged, outbreak conditions remain. 

And now there’s word that pollution levels are spiking in Beijing, which may raise protective gear demand even more.  Pollution has already proved to be a concern for competing athletes, with Haile Gebrselassie dropping out of the men’s marathon out of health concerns.

Keep APT on radar as a possible buy, say the editors of SC Trading Pit.

Good Investing,

Ian L. Cooper