Trade-Ideas LLC identified

Novavax

(

NVAX

) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Novavax as such a stock due to the following factors:

  • NVAX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $61.0 million.
  • NVAX has traded 102,585 shares today.
  • NVAX is up 4.3% today.
  • NVAX was down 8.8% yesterday.

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More details on NVAX:

Novavax, Inc., a clinical-stage vaccine company, focuses on discovering, developing, and commercializing recombinant nanoparticle vaccines and adjuvants. The company produces its vaccines using its proprietary recombinant nanoparticle vaccine technology. Currently there are 6 analysts that rate Novavax a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Recommends

The average volume for Novavax has been 6.1 million shares per day over the past 30 days. Novavax has a market cap of $1.5 billion and is part of the health care sector and drugs industry. The stock has a beta of 1.00 and a short float of 15.8% with 3.29 days to cover. Shares are down 32.8% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Novavax as a

sell

. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:

  • NOVAVAX INC's earnings per share declined by 50.0% in the most recent quarter compared to the same quarter a year ago. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, NOVAVAX INC reported poor results of -$0.36 versus -$0.31 in the prior year. For the next year, the market is expecting a contraction of 20.8% in earnings (-$0.44 versus -$0.36).
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Biotechnology industry. The net income has significantly decreased by 67.9% when compared to the same quarter one year ago, falling from -$19.73 million to -$33.12 million.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Biotechnology industry and the overall market, NOVAVAX INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to -$28.53 million or 79.70% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The share price of NOVAVAX INC is down 12.66% when compared to where it was trading one year earlier. This reflects both (a) the trend in the overall market as well as (b) the sharp decline in the company's earnings per share. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.

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