I am sure you all heard about the outbreak of coronavirus in China and its spread across the world.The Wuhan coronavirus has already spread to every region in China. Some companies have warned that a coronavirus outbreak in China that has killed more than 300 people and infected thousands could disrupt supply chains or hurt bottom lines as factories and shops shut and airlines suspend flights.The Chinese officials decided to extend the holiday break for the people to limit their meetings and the possibility of being infected.

Beijing has quarantined large part of the country. Travel-related stocks, such as airlines and casinos, are down.In this episode of Stocks To Buy Now series I will talk about the best choice of companies which should not be affected by the spread of the coronavirus.And remember that by investing when other people are selling, you are technically helping to stabilize the market, so it actually has a positive effect. Nobody is better off when you don’t.

It has been another great month for my stock market portfolio and my choices for Stocks To Buy Now series. The average return was 2.78% versus the benchmark the S&P 500 index going down 0.16%, so it was another month of beating the index.Facebook went down by 1.63%, and Alphabet, which is a parent company of Google increased by 6.97%.Next, there are my choices from Emerging markets. CD Projekt Red went up by 0.75%, and 11Bit Studios went up by 8%.If you were following this channel, you know that I bought shares of CD project RED after the negative news about moving the date of the release of its highly anticipated game – Cyberpunk 2077.McDonald's has already suspended business in some areas of China.

Apple management informed on Saturday that it would shut all of its official stores and corporate offices in mainland China until Feb. 9.Fashion retailers like Nike have already experienced a reduction in its share price.Other companies at risk are producers with supply chains in China. For example, the Apple company has lost production from suppliers in Wuhan.The latest efforts of Apple company to move part of its production to India was a good move which allows spreading the manufacture of its devices among countries.Tesla warned that a 1 to 1.5-week delay in the ramp of Shanghai-built Model 3 cars could slightly hurt March-quarter profit after China ordered a shutdown of the factory. Tesla is also evaluating whether the supply chain for cars built in its California plant will be affected.

My preferred gaming companies are CD Projekt Red and 11 Bit Studios. These are Polish video game companies.I like these companies because the majority of their revenues come from abroad.Thanks to being based in Poland, the salaries of game developers and programmers are on a much lower level. Average salaries of a software developer or game designer are 3 to 3.5 times higher in New York than in Warsaw, the capital of Poland where the CD Projekt is based.CD Projekt RED is expected to have net margins above 50% for the four quarters after the release of the Cyberpunk 2077 game.Now, you may understand why I prefer to invest in Game Developer companies from Poland than from the United States.Netflix's The Witcher TV series helps to sell more games in The Witcher universe. That is another aspect which will help in the climbing of the CD Projekt shares.

Next, let's think about companies with high growth but which businesses are not operating in China. Facebook services (Facebook, Instagram, WhatsApp) are blocked in China. Similarly, YouTube and Google search engine are blocked by the Chinese government.Their main businesses should not be affected by a potential slowdown in the Chinese economy.

Additionally, because these are the advertising businesses, Alphabet and Facebook will benefit from increased advertising caused by the US presidential election.I like companies with high-profit margins, low or no debt and high growth.These 2 FAANG stocks meet all of these criteria.Both companies are not cheap; their Price to Earnings ratios are around 30. Forward Price to Earnings ratio for Facebook is below 20, which is a bargain. The same ratio for Alphabet is at the level slightly higher than 26.The expectations for Earnings Per Share growth are almost 20% for Facebook for the next five years and 9.7% for Alphabet.

Last week, Facebook published its quarterly financial results.In fact, the business of Tencent should do well while people stay indoors to reduce the chance of infection.




Music: Leonell Cassio




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