This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

China's Bird Flu Sinks Food, Sparks Biotech

NEW YORK (TheStreet) -- The bird flu scare in China was driving food and food processing stocks lower Monday afternoon as the death toll from the sudden outbreak rose.

"Food producers will not be helped by the destruction of animal stocks and the increased regulations and precautions regarding containment of this disease," said Michael Pento, president of Pento Portfolio Strategies based in Plymouth, Mass. "I'm avoiding food producers here like Tyson and suggest buying biotechnology through the ETF FBT."


Tyson Foods (TSN) was falling 2.24% to $23.49, Smithfield Foods (SFD) was shedding 3.04% to $25.44 and Pilgrim's Pride (PPC) was unchanged at $8.85.

Yum! Brands (YUM), whose KFC restaurant chain is heavily present in China, was down 0.14% to $66.85, as wholesale and retail poultry markets were shut down in Shanghai and Nanjing, animals were culled and chicken consumption looked to have declined due to fears of being infected.

The outbreak of a new strain of avian flu, H7N9, has already killed seven people in China and infected 24 people as of Monday evening, according to Chinese reports.

Chinese officials have started researching the development of vaccines for H7N9, but it could take up to six to eight months before a product can be brought to the market. "To satisfy demand" in the present situation, China's Food and Drug Administration on Friday said it expedited its approval of the BioCryst Pharmaceuticals' (BCRX) anti-influenza drug Peramivir. The stock was surging 13.54% to $1.93.


Pento said the avian bird flu outbreak compounds the pain food producers have been feeling due to rising commodity prices like gas and feed stocks.

Written by Andrea Tse in New York

>To contact the writer of this article, click here: Andrea Tse.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,120.77 +69.04 0.40%
S&P 500 1,984.66 +11.03 0.56%
NASDAQ 4,457.94 +33.2360 0.75%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs