Death Stocks Down, Why?

Vanity ^ | March 22, 2020 | Me

[RBW in PA]

Was having a conversation with my Father this morning and he raised a very interesting point about the stock market and “death stocks”. With the nonstop reports of doom and gloom from the media, one would think that companies that provide caskets, vaults and other death related items would be soaring. I decided to do some quick research and found the contrary.

Two major companies in the “death business” are:

Hillenbrand, Inc. (HI)
> Interesting Fact: Sells 45% of caskets sold in the United States > # of Employees: 3,200
> Most Recent Quarter Revenue: $212 Million
> Most Recent Net Income: $20 Million

Service Corp. International (SCI)
> Interesting Fact: funeral and cemetery market share in North America of roughly 12%
> # of Employees: 13,087
> Most Recent Quarter Revenue: $533.2 Million
> Most Recent Net Income: $18.8 Million

Checking stock quotes for this month, Hillenbrand was at a high of $27.94 on February 21 and is now selling at $16.07. Service Corp. International was at a high of $52.83 and is now selling at $35.94.
So my question is, if all the masters of the universe on Wall Street coupled with all their inside information thought “we are all going to die”, why would “death stocks” be down. Perhaps they think we are all going to be cremated or placed in mass graves? Perhaps, they know that COVID19 is being hyped and nothing serious from a health perspective is going to occur? I think the latter, and the four inside trader Senators agreed, they invested in companies that provide video conferencing technology.

[RBW in PA]

Sorry for linking back to Free Republic. Since I wrote this Vanity, I have no link to publish.

[BusterDog]

Because they are not going to be using caskets and the crematoriums will be run by the states.

[AndyJackson]

Valuations were very high before this struck. A reversion to usual valuations hits everyone.

[wastoute]

It could be because you cremate victims of a pandemic. It could be they know that FEMA has 3 million plastic caskets. Could be a lot of things.

[ifinnegan]

Because the number of deaths is minimal.

How many?

Last three days there were 57, 49 and 46.

Given the ages of those passed, even these few numbers don’t increase the market size much.

[ReformedBeckite]

Maybe those casket companies are shut down too. Better invest in that company that prints that book “Handbook of the recently Deceased”

[outofsalt]

Fewer burials? Soylient Greed? Uhh, green?

[montag813]

Because Wuhan Flu is a contrived mass panic to defeat Trump.

New York "overwhelmed"....yet their mortality rate for Kung Flu is only 0.6%.

[wastoute]

It could even be because there is no virus and it’s all an Illuminati plot to take over the world. I’m going with this one because I haven’t yet personally seen anyone die.

[ifinnegan]

“Sorry for linking back to Free Republic. Since I wrote this Vanity, I have no link to publish.”

Good question and points made.

[outofsalt]

"Better invest in that company that prints that book “Handbook of the recently Deceased”

Not much profit in that anymore.

[PGR88]

Because giant trenches are cheaper and the state already has the bulldozers.

[beaversmom]

Don’t buy any soylent wafers made in China.

[Wayne07]

Market was largely overpriced to begin with. It looks like the a very large recession is being priced in across the board. People aren’t going to be buying fancy caskets when the whole family is unemployed and the family business is bankrupt. And at a glance, SCI is sitting on a a fair amount of debt. I wouldn’t be bargain hunting at this point unless you have deep knowledge of the company and sector that would override the more macro negative trend.

[BenLurkin]

Because an ebbing tide lowers all boats.

[outofsalt]

;)

[aquila48]

“Because the number of deaths is minimal.”

And not just from C19 but from your regular flu. Because all the precautions being taken not only helps the C19 situation but the common flu as well. I bet anything that this year will be one of the lowest mortality rate by all flus on record.

[immadashell]

We should send copies of the new best seller, “Dying, For Dummies” to all members of the media.

[Tanniker Smith]

Everyone is going to have simple, quiet (non-crowded) services, and few will go through with everything that has to be considered with burying people.

There will likely be fewer burials, more cremations, fewer services and little need for limos or catering.

[RainMan]

At present (3/22/20) funerals are pretty much not allowed in WA state. You can have one, but first you have to find a cemetery that will actually allow it, second, if they do allow it, no more than 10 can attend. Finally, you cannot have a wake/celebration of life since all the restaurants are closed, and again, no public gathering of more than 10 people. SO ... what to do with the body? The only viable option is to cremate and then wait until this passes for the service/memorial. Ergo, you dont need a casket.

BTW, I am speaking from experience. My mother was Holyscroller, a VERY long time freeper (I have been one for over 20 years and she was the one that turned me onto FR.) Holyscroller went to be with her lord, and her husband (my dad), back on March 8.