My heart goes out to the nurse in Texas who contracted Ebola while treating patient zero and to all those who are affected by Ebola. We need a vaccine and a drug; great progress is being made on both fronts.

It is unfortunate that out of the Ebola tragedy, there has been so much pumping especially on two stocks on which many unsuspecting investors will end up losing their shirts. These two stocks are Lakeland Industries LAKE, and Alpha Pro Tech APT,  They make personal protection equipment (PPE), the kind of suits and masks worn by health-care workers.

Investors are encouraged to carefully study SEC filings of these two companies, especially the balance sheets and accompanying notes. Lakeland and Apha Pro are fine companies; the issue is not the companies themselves, but the stock pumpers.

Money has moved out of Ebola drug and vaccine stocks into these two stocks. After Ebola drug and vaccine stocks were pumped to unsustainable heights, they have been dumped on the theory that it is difficult to determine which company’s products will work. The argument behind Lakeland and Alpha Pro pump is that demand for PPEs will skyrocket. The argument is simple and resonates with investors who are not seasoned to guard against pumps and dumps.

Let us start out with an annotated chart that tells the story.

Please click here to see the annotated chart.

Here are the six reasons why our rating at The Arora Report is a strong sell on these two stocks…Read more at MarketWatch

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