Summary
- There has been a debate about the prospects Novavax and should investors have "Hope" in the company. Both sides have their points and appear to be equally weighted.
- This battle is now being fought in the market as the stock is in a stalemate around $0.50-0.60 a share. However, the charts are starting to show an upward trend.
- The share price fallout was due to disappointing Prepare study data. In opposition, the data did show ResVax was able to thwart the more severe cases of RSV in infants.
- I lay out my reasons for entering NVAX and how the charts are showing hope before the company can. In addition, I present some of the major downside risks moving forward.
Novavax (NVAX) has been an enigma for me and has kept me on the sidelines. The fundamentals of the company and technicals of the stock chart never lined up for me to buy in. I always found the market cap to be overpriced and the share price seemed to be caged-in the $1.00-$2.50 range. Despite the upside potential of the pipeline, I always passed by in favor of companies with a bit more movement to them. Following the RSV vaccine readout, the share price imploded and then remnants scattered along a $0.50 floor. These events have prompted antagonistic articles from Stone Fox Capital and Out of Ignoranceabout whether there is hope or no hope for NVAX. After reading both of their articles, I realized that NVAX has been a battleground over hope for many years. Inside there are bulls pointing to the potential of the pipeline and bears pointing the failures. At some point, one was going to have to give.
