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  • Oliver Pine

Stonks: CLX

Supply and demand. From those stupid kids down the street pawning off store bought lemonade as fresh squeezed at their lemonade stand to Apple, every single industry relies on this one basic economic topic. Or at least I’m pretty sure that’s how it goes, I called out sick for that lecture in my college Economics class. My spotty attendance history notwithstanding (sorry Mom) let’s take a quick step back. When you walk through CVS nowadays what is the one item you’ll never find on the shelves. If you’re a staff member who shall remain nameless it’s condoms, for the rest of us Americans it’s sanitizing wipes and sprays. Kind of a no brainer considering current events. These products are flying off the shelves, and while supply might currently be lagging behind demand, that won’t always be the case. That’s where the money is…

Without further ado, I present to you… Clorox (CLX). It might not impress your daytrader friends, but it will actually make you money. Something none of their portfolios have accomplished. CLX has understandably had a strong 2020, I think that’s absolutely undeniable considering their ~134% ROI. However, a lot of their detractors' main points are kind of ridiculous in my opinion. Many critics have said that Clorox’s earnings boosts will end after the pandemic is over, citing Fauci’s estimates for a vaccine by the end of 2020. There’s a lot to unpack here, but if we get a vaccine by the end of the year no one will be happier than me, please bring back darty szn, however, I just don’t think it’s that realistic. Following that, I would say the pandemic has made not only the American consumer more conscious of cleanliness and hygiene, but also major companies such as United Airlines with whom they just entered into a partnership. While Clorox’s numbers might take a small tumble when the pandemic ends (whenever that is), that isn’t to say the long-term health of the company is jeopardy (it’s not). To conclude, buy Clorox or don’t I don’t really care. Either way I’m not liable for whatever stupid decisions you make with your money.

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