dcsilver (58.67)

NVAX – Cluster Insider Buys in August

August 23, 2011 – Comments (0) | RELATED TICKERS: NVAX , SIRI , EXEL

You can never tell when a stock has hit its bottom.  For instance, I used to love Sirius (SIRI), I still do, but I kept the faith and rode the stock down from $4.00 a share to $.05.  If I had faith to put in as much money at $.05 as I did at $4.00/$3.00/$2.00/$1.00/$.50, I’d have a lot more money today (who wouldn’t investing with hindsight).  Still I kept buying and watch the invest grow only because I took a big risk when the stock was tanking and being manipulated by shorts and bad long term debt (which I promise, will rear its ugly head again in 2012).  You can read my older blogs to get my thoughts on that though.

Lately, as my more recent posts discuss, I’ve had a focus on biotech and baby biotech on that.  First is EXEL.  You can read Fool.com commentary on that (MDP especially), because I’m heavily invested in that one because of my subscription to MDP.

But another stock I have developed a mild love affair with is Novavax.  Currently trading at $1.30.  Forget the company, forget what they do for a second, forget that shares of NVAX  are down despite positive study results on the company's  H1N1 virus-like-particle pandemic influenza vaccine, forget the data indicated that NVAX's H1N1 VLP vaccine was well-tolerated and immunogenic.  More importantly you should forget the news that a division of the Department of Health and Human Services had awarded the vaccine developer a contract worth up to $179 million to continue development on its VLP-based vaccines for seasonal and pandemic flu. Novavax plans to use the funds to run clinical trials for its pandemic vaccine in combination with various adjuvants, or boosting agents, and conduct certain Phase II and Phase III studies for its seasonal vaccine. The company also intends to build a manufacturing facility that can produced finished vaccine within 12 weeks and can produce up to 50 million doses within six months after a flu pandemic is declared.

Forget all that blasphemous news.  Just look at the recent insider transactions:

Douglas Richard – Director – 50000 BUY $2.04 6/20/2011

Trizzino John – SNR VP – 20000 BUY $1.19 8/09/2011

DRISCOLL FREDERICK – SNR VP, CFO BUY $1.18 8/09/2011

DOUGLAS RICHARD – Director – BUY 50000 $1.20 8/09/2011

Erck Stanley – President & CEO – BUY 50000 $1.24 8/10/2011

Erck Stanley – President & CEO – BUY 13000 $1.26 8/19/2011 

(gurufocus.com - http://www.gurufocus.com/stock.php?symbol=NVAX)

I’m buying because they’re buying.  These guys are sitting on funding, they are sitting on a potential blockbuster.  This stock has traded up and down for years.  The market has killed them recently despite all of the good news.  Can the stock still drop?  Sure, but something is brewing and when biotech M&A picks up, someone is buying NVAX for a sweet premium from where we sit today.