U.S. Healthcare Stock Outperforms as Market Craters

The TSX Venture remains highly volatile, along with all other major indices this month. However, despite the ups and downs, at mid-month the Venture is nearly at the same level it was on September 1st. So, to see many members massively outperform the markets, despite the volatility and overall flat performance thus far, is impressive.

Let’s start with our leader ‘Scoby13‘ who went all-in on Akumin, a company focused on comprehensive outpatient radiology and oncology solutions. ‘Scoby13’ currently sits on top with a 74.81% return.

Akumin Tops Stocks Thus Far in September Stock Challenge

According to the company, Akumin is a “…partner of choice for U.S. hospitals, health systems, and physician groups. Akumin provides fixed-site outpatient radiology and oncology services through a network of 234 owned and/or operated centers; as well as outpatient radiology and oncology solutions to approximately 1,000 hospitals and health systems across 48 states.”

According to the American Medical Association,

“Health spending in the U.S. increased by 9.7% in 2020 to $4.1 trillion or $12,530 per capita. This growth rate is substantially higher than 2019 (4.3 percent).”

Healthcare costs rose another $200 billion in 2021 to $4.3 trillion, and many companies are reaping the benefits.

In an inflationary environment, investors will spend on what they need, not necessarily what they want. Healthcare falls into the ‘need category’ and may prove to be an outperforming defensive sector during this recession.

Next up is ‘gogoyankee’, who also found a way to go all-in on one stock, Reconnaissance Energy Africa (“RECO”). ‘Jade Man’ (5th place), ‘Robert Slater’ (7th place) and ‘SAILORboy’ (8th place) all selected RECO as well. The oil and gas company is one of the largest on the TSX Venture, with a market cap around $1 billion.

Kavango Sedimentary Basin Discovery Keeps Eyes on Reconnaissance Energy

According to Reconnaissance Energy Africa, it is “…engaged in the opening of the newly discovered deep Kavango Sedimentary Basin, in the Kalahari Desert of northeastern Namibia and northwestern Botswana, where the Company holds petroleum licences comprising approximately 8.5 million contiguous acres.”

The company has had some huge moves in September – jumping 34% on September 1st, 10% on September 12th, and 11.89% on September 14th.

With half the month remaining, and volatility spiking across the board, this month’s crown and the silver bullion remain up for grabs.

Keep an eye on ‘Joshue phelan‘ currently in 3rd place with a 42% combined average return… having selected two U.S. biotech stocks, they may avoid the carnage in the natural resource sector or broader U.S. markets.

Good luck in the final two weeks of Stock Challenge!