Lakeland: Move Over Delta, Meet Lambda

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Lakeland: Move Over Delta, Meet Lambda

Lakeland Industries, Inc. (Nasdaq:LAKE) - $22.31

With global headquarters in Alabama, Lakeland Industries is a worldwide leader in high-performance safety workwear and protective clothing. Products can cover you from head to toe, protecting you from caustic chemicals, fire, knives, and biological threats. The products for biological threats can be found here.

LAKE's Monster Earnings

LAKE is on a January fiscal year and for the year ending Jan 2021 reported monster earnings of $4.31 per share, with free cash flow after everything of $4.79 per share. The company did well supplying protective gear to healthcare workers globally due to covid. When the vaccines came out, the stock began to head south based on the assumption that their big year was a one-time event.  But the windfall earned from round 1 of the pandemic threw a lot of cash on the balance sheet and as of April 2021, they had $7.25 per share in cash. Long-term liabilities are only 1 million.  Net-Net working capital was $13.67 per share. The company has 2 sell-side firms following it.

CNBC and other drinking bird media companies talk ad nauseum about the Delta variant of covid and how it is an issue for those who have not had their 2 vaccination shots. South America and Mexico are a big unreported problem for those in the USA. South America is dominated by the Lambda variant, not the Delta variant and we have a porous southern border (to put it mildly)  It is no surprise that the first case in the US with this was found in a border state – Texas. Texas and other border states are more conservative and have less success in vaccinations than states such as NJ. We already know that the Delta variant is more easily transmitted than the original strain. Some scientists think that Lambda may be worse than Delta. For those here in the USA who have received the Pfizer or Moderna vaccine, you are luckier than many millions worldwide who have received the Chinese CoronaVac vaccine, the mis-hyped AstraZeneca vaccine, or many others. The CoronaVac vaccine is the dominant vaccine in Latin America. The problem with the use of suboptimal vaccines is that due to natural selection – thought of by somebody named Darwin, we are left dealing with many unknowns regarding how transmitting that surviving virus will be different from what existed before. I agree with the belief that if you are unvaccinated, you run an exceptionally high risk of getting Covid. Within one person, you can also have more than one subtype of the virus, but that is beyond the scope of this report.  It is likely that within a week or two of publication of my tidy note, the news media in the US will be discussing the Lambda variant more, and its possible interaction with Delta.

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