SARS and Stripes
By Rick Aristotle Munarriz (TMF Edible)
April 14, 2003
Talk about beating an industry when it's down. The sluggish travel sector looks even more tired now that the troubling spread of severe acute respiratory syndrome (SARS) is hitting closer to home. Literally.
Last week, Disney (NYSE: DIS) warned in a filing with securities regulators that perceived uncertainties about how the disease is transmitted may keep tourists away from its theme parks.
Shares of cruise operator Royal Caribbean (NYSE: RCL) shed nearly 5% on Friday after two crew members of a different line, aboard Star's Superstar Virgo, were suspected of having contracted the mysterious pneumonia-like illness. Rival cruise specialists Carnival (NYSE: CCL) and Princess parent P&O (NYSE: POC) also closed lower.
Over the weekend, the World Health Organization reported that the SARS tally has grown to 2,960 cases, with 119 proving fatal. While originating in China's Guangdong Province late last year, it has become a globetrotting menace in recent weeks.
The struggling airlines, such as AMR (NYSE: AMR) and United (NYSE: UAL), are feeling the pinch on already bruised wings and continue to scale back international flights. Last month, the war in Iraq and high fuel prices kept folks closer to home. Now that tensions are starting to ease on both fronts, we have SARS threatening to make hermits of us all.
While we haven't reached the panic stage yet, it's probably a good time to brush up on the symptoms and facts behind the malady. Checking your portfolio for companies that may be vulnerable to a wider SARS outbreak, while seeking out stay-at-home stocks, may be a precaution worth taking. It's the best way to stay healthy -- medically and financially.
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