Hi Anthony,
Investors should not chase companies involved in COVID-19 vaccines. Traders are currently making a mint of folks that are jumping into stocks that are in the news because of potential vaccines. Then, once momentum subsides, the stock craters and retail investors are left holding the bag.
Case in point FSD Pharma which is listed on the Canadian Exchange (FSD.CN) received FDA approval for a Phase 2a Clinical Trial to treat patients with suspected or confirmed COVID-19. When that was announced, it shot up from 4$ to $14.70 per share. Once it peaked, it lost more than half of its value and is now trading at $7.00 per share.
This is a perfect example of the trading patterns when euphoria is involved. By the time retail investors get int o these positions, the easy money by brokers and professional traders is already made. It is a very risk strategy.
I don't know enough about FSD to comment on its status as an investment, but at this point last year FSD was trading at $39.20. Not sure what caused its fall (looks like a steady downtrend, then a big drop in Sept) but I have a hard time investing in a company whose fortunes are tied to one treatment outcome.
As for Phizer and Eli Lilly, in my opinion both are excellent long term investments. Pharmaceuticals are considered defensive and investors should have exposure to the industry. The industry is highly volatile, and stocks can skyrocket or crash depending on study outcomes. With the larger players, you have more stability as the stock is less susceptible to one bad study.
Mat