NVAX (Novavax Inc.)

Novavax Inc. (NVAX) is another stock that I would like to leave you with to take a look at. NVAX is a specialty Bio-pharmaceutical company in the Medical- Biomedical/biotech industry. Bio-Tech and Bio-Pharma has been HOT right now, but why NVAX when there are literally hundreds of other "bigger, better and more established" Bio-Pharma companies out there. Well first, lets look at the chart.


For the last few months as the stock began a steady decline, the volume had basically shriveled up. The stock had basically followed the 50day MA down until July where it had bottomed out. The company insiders began their buying when the stock bottomed out. When you couple that with the facts that NVAX's Avian Flu Vaccine is successful, you have the perfect catalyst for strong upward moves which are evident at the end of August.


So why should we pay attention to NVAX and buy it since its such a speculative stock? You may be thinking that their are a ton of micro- biopharma companies popping all over the place "specializing" in developing bird-flu vaccines. That may be the case, but that's what's HOT right now. China has a growing demand for treatments towards Avian Flu and other diseases that affect primarily Asian countries.

The other indicator pointing towards NVAX as a buy, is the amount of insider buying. This is NOT fund buying...This is actual company big whigs placing their bets on their company. Most of the time, this type of insider buying indicates the insiders know something we, the traders and investors do not.

APPROACH: I would wait till the price drops a little this coming Monday, and then buy NVAX. It is still a good bargain at this price as well. Wait it out and try to grab it at the LOD (Low of the Day).

TIME FRAME: I would buy and hold as a short to intermediate term Trade. I would like to see it at least double and hit the 3 dollar range, even possible going to 4's and filling the gap and constructing a nice base.