Novavax: Dead Cat Bounce
- Novavax, Inc. bounced on hype while the prospects from the business continued to dim with the demand for Covid vaccines.
- The small biotech has major doubts about the financial picture of the company considering the massive operating expense structure built up to produce Covid vaccines.
- Novavax stock remains a Sell due to like further dilution ahead and no logical path to profits.
- This idea was discussed in more depth with members of my private investing community, Out Fox The Street. Learn More »
Following a going concern proclamation from the company, Novavax, Inc. (NASDAQ:NVAX) had bounced over 50% of the lows to over $9. The biotech faces a problematic year as demand for Covid boosters dries up and the company has a major mismatch with their current expense structure. My investment thesis remains Bearish on the stock as investors await Q1 results in mid-May.
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