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  • Smokin’ Hot

    Posted by In-Cog-Nito on October 25th, 2005 (All posts by )

    I’ve highlighted what can go wrong with an investment. Here’s an example of what can go right: Novavax (NVAX), top gainer and most active for trading on Nasdaq today, up 33% on 51 million shares.

    Novavax is an avian flu play. They have a potentially proprietary way of mass producing flu vaccines. I didn’t quite believe it, but vaccines are still made the same way as a century ago: “where the product must be incubated over months at a time using century-old chicken egg-based technology.” Novavax’s Virus-Like Particle (VLP)technology can cut that time down significantly.

    If you’re into watching the market, the trading in NVAX is a sight to see. NVAX has 43.5 million shares outstanding. So today’s 51 million shares volume says a lot. What caused the jump? You name it: the avian flu scare in Europe, short squeeze, momentum traders, CNBC focus, shortage of flu vaccines last season from production problems, to name a few.

    I smell a frenzy. Smokin’ hot.

    Note: NVAX is a highly volatile small cap stock. Be careful. Do not construe any of the above as investment advice.

     

    4 Responses to “Smokin’ Hot”

    1. W Sol Vason Says:

      51 million shares traded in a single day; 43 million outstanding. The float is probably half that which means there must be an enormous short interest – probably 15-25 million shares. The rise is caused by a short squeeze. A buying panic is likely – followed by a rapid crash once the shorts are out. Be nimble and quick, the sharks are out and there is blood in the water.

    2. W Sol Vason Says:

      51 million shares traded in a single day; 43 million outstanding. The float is probably half that which means there must be an enormous short interest – probably 15-25 million shares. The rise is caused by a short squeeze. A buying panic is likely – followed by a rapid crash once the shorts are out. Be nimble and quick, the sharks are out and there is blood in the water.

    3. Sandy P Says:

      I’m stickin’ w/CME and those oil stocks.

    4. incognito Says:

      W Sol Vason, excellent points, and correct. I’ve taken my gains and ran.

      Sandy, sounds like a plan.