Investors look for stocks that could gain from swine flu

— -- Rather than reaching for rubber gloves and face masks for protection, some investors are trying to expose their portfolios to the swine flu.

As governments brace to see if the H1N1 flu strain, better known as swine flu, worsens, investors are looking for companies that might profit from the pandemic.

"Investors can make money and avoid losses when it comes to swine flu," says Jason Kantor, analyst at RBC Capital. "The secret is to own companies that will benefit directly regardless of (the outbreak's) severity."

That includes companies that:

•Produce mainstream flu treatments. Perhaps the most straightforward way to invest in swine flu is through companies that make popular mainstream drugs that fight viral infections.

Gilead stands to benefit if the regular flu this year is worse than expected, Kolbert says, and also benefits if the H1N1 flu is more virulent than forecast. It's a highly profitable licensing arrangement, Kantor says. Gilead is expected to reap $200 million in sales from Tamiflu in 2010. GlaxoSmithKline and Novartis could benefit, too, since they make seasonal flu vaccines, he says.