Healthcare Business

Speculative Swine Flu Stocks Giving It Back (NVAX, GNBT, BCRX, PURE, VICL, VIVO, AVII)

This week there have been many crazy stock gains among the speculative biotech sector, and these were tied directly to the ‘speculative stocks’ that could have any ties in reality, fiction, and even imagination to a cure or hope in the fight against Swine Flu or any other sort of flu for that matter.

As you will see below, Novavax, Inc. (NASDAQ: NVAX), Generex Biotechnology Corp. (NASDAQ: GNBT), BioCryst Pharmaceuticals Inc. (NASDAQ: BCRX), Pure Bioscience (NASDAQ: PURE), Vical Inc (NASDAQ: VICL), Meridian Bioscience Inc. (NASDAQ: VIVO), and AVI BioPharma Inc. (NASDAQ: AVII) have all begun their overbought roll-over.

Novavax, Inc. (NVAX) is down 13% at $2.75; shares were at $0.81 last Thursday and closed at $1.42 last Friday (and hit $3.88 Monday).

Generex Biotechnology Corp. (GNBT) is down 22% at $0.44; shares were at $0.27 last Thursday and closed at $0.34 last Friday (and hit $0.70 yesterday).

BioCryst Pharmaceuticals Inc. (BCRX) is down 18% at $3.41; shares were at $1.75 last Thursday and closed at $2.21 last Friday (hit $4.89 Monday).

Pure Bioscience (PURE) is down 10% at $10.58; shares were at $1.75 last Thursday and closed at $1.85 last Friday (hit $3.19 Monday).

Vical Inc (VICL) is down almost 7% at $2.27; shares were at $2.40 last Thursday and closed at $2.53 last Friday (hit $3.30 Monday).

Meridian Bioscience Inc (VIVO) are flat today at $17.80; shares were at $16.13 last Thursday and closed at $16.24 last Friday (and hit $18 on Monday).

AVI BioPharma Inc. (AVII) is down 10% at $0.878; shares were at $0.74 last Thursday and closed at $0.89 last Friday (and hit $1.29 Monday).

We sent a notice to our newsletter subscribers that these moves have been seen before, and these same moves are usually followed by a move back down that often takes the stocks  lower than where they started.  Some of these shares moved higher on Friday, so we wanted to show how much some of these have run up since last Thursday even with today’s pullback.

We stand by our prediction of earlier this week, despite the seriousness of this issue and despite the unfortunate deaths and illnesses that have been reported as a result.  Swine flu will soon be the brunt of jokes no different than the “Squeal like a pig!” notorious movie line.  The most dangerous things in Mexico remain the crime and violence, and of course Montezuma’s Revenge.

Jon C. Ogg