(NEW YORK)–In a creepy but very logical aspect traders are looking to stocks like StoneMor (NYSE: STON) to play to future increase demand fro funeral and burial services.
STON is the second largest network of cemeteries and funeral homes in the United States. With COVD-19 cases in the US now reaching critical breakout levels some traders are looking for funeral service companies as they should be expected to see higher then normal operations well into 2021.
STON stock saw its price surge Friday to a high of around $1.65, with a strong break through of its key 200-day moving average.
More and more coronavirus traders are moving out of the vaccine plays and now to next phase story plays like ventilators, and funeral service stocks. Look for STON stock to rise from grave as traders swing over into the this sector.
On Friday, STON announced it had agreed to sell all of its California operations in two separate deals worth $49 million as part of a larger cost-cutting plan designed to bring the cemetery and funeral home owner and operator back toward profitability.
The Company is expected to finalize more divestitures in the second quarter, and will use the first $55 million of net proceeds and 80% of the remaining portion from these sales to redeem a portion of the outstanding debt.
StoneMor Inc. owns and operates cemeteries and funeral homes in the United States. It provides cemetery property interment rights, including burial lots, lawn and mausoleum crypts, and cremation niches; cemetery merchandise comprising burial vaults, caskets, grave markers, and memorials; and cemetery services, which include opening and closing, cremation, and cemetery merchandise installation services. The company also offers caskets and other funeral related items; and funeral home services, such as family consultation, the removal and preparation of remains, insurance products, and the use of funeral home facilities for visitation and memorial services. As of December 31, 2019, it owned and operated 321 cemeteries and 89 funeral homes in 27 states and Puerto Rico. The company is based in Trevose, Pennsylvania. https://www.stonemor.com/
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