A few of you have written to ask whether I am still long virus technology company Novavax (NASDAQ:NVAX) since purchasing shares for $3.74 on October 2, 2006. The answer is yes, and I intend to hold the shares for a much higher price.
A quick glance at the chart shows that it has turned the corner technically and, if it can break through minor resistance around $5.50, could go much further.
Keep in mind that the company's technology is still unproven but it has made tremendous strides over the past year. Novavax announced positive results from preliminary trials of its VLP technology, hired an all-star virus researcher and an avian flu expert from the CDC, and attracted top shelf institutional investors like Kleiner Perkins. Another year like that and Novavax could join companies like Crucell (NASDAQ:CRXL) in the top echelon of antiviral health.
Despite this progress, Novavax continues to attract the shorts. In November, short interest grew to over 4.5 million shares, or 8.19% of the float. I have nothing against shorting, but I think they are on the wrong side of Novavax.
NVAX 1-yr chart:
DISCLOSURE: I am long NVAX.