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Swine Flu Stocks Tumble

|Includes: BAX, Cel-Sci Corporation (CVM), GILD, GSK, NVAX, RHHBY, SVA

This past week we have seen Biotech Indexes falling between a 5-10% loss in two days trading. Additionally, there has been a massive Swine Flu Stock sell-off. Stocks of note are Novavax (NASDAQ:NVAX), Sinovac (NASDAQ:SVA), Biocryst (NASDAQ:BCRX), AVI Biopharma (AVII), and Dynavax Technolog (NASDAQ:DVAX).

From 092509 afternoon trading:
NVAX: 090109 6.65 high, Today at 3.81--> 43% loss
SVA: 090109 10.46 high, Today at 7.90--> 25% loss
BCRX:091509 11.67 high, Today at 8.26--> 29% loss
AVII: 090109 2.08 high, Today at 1.58--> 24% loss
DVAX: 091009 2.55 high, Today at 1.80--> 29% loss

Today's selloff is a sign that these stocks are solely trading on hype and volatility, this hype could come back but these are volatile stocks that will rise and fall sharply. Yesterday's crash appears to have come from Congress' Health Care 80B Dollar Bill vote. In news today, the Senate Votes Down New Pharma Cuts. We have the G20 convention in Pittsburgh this week. But there is a lot affecting the market the past couple of days. The Federal Reserve has people talking too. Today, the Fed moves to be sooner, faster, stronger: Warsh, meaning faster rate hikes in this case.

The market recovers slightly only to be set back down quickly to previous gains. It a state of reflux that is unpredictable. I see the swine flu stocks coming back but I do not think they will return to previous highs any time soon. Maybe at the height of flu season but with an early flu season we could all have some immunity to it by the end of the season. It's not that bad but it is a very contagious flu strain affecting young people at alarming rates. I do see these stocks rising again but there is no way to tell.

It's a tough economy these days. We are not out of the woods just yet. I see these stocks rising again but not sure they can maintain their earnings over time. The big players in the markets don't lose as much value and can ride this economic storm out. They remain, Baxter(NYSE:BAX), Novartis(NYSE:NVS), Gilead(NASDAQ:GILD), Roche(OTCQX:RHHBY), and GSK(NYSE:GSK).

Cel-Sci hasn't dropped all that much and was a gain at 1.66 trading. 
CVM:  1.66 +0.06 (3.74%)

Disclosure: No positions