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Novavax: Swine Flu Play Headed Back to Earth
Flu season is just around the corner – so it’s no surprise the “swine flu” stocks have had a nice move up.
 
Some of them, however, aren’t destined to stay aloft. Shares of the vaccine play Novavax (NVAX) have recently been subject to some of the highest demand by shorts at Locatestock.com. Plus an insider is selling significant amounts. That spells Double Trouble for this swine flu play.

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By DoubleTrouble Blogger on 9/11/2009 4:23 PM

Author:Double Trouble BloggerCreated:10/21/2009 4:46 PM
Flu season is just around the corner – so it’s no surprise the “swine flu” stocks have had a nice move up. Some of them, however, aren’t destined to stay aloft. Shares of the vaccine play Novavax (NVAX) have recently been subject to some of the highest demand by shorts at Locatestock.com. Plus an insider is selling significant amounts. That spells Double Trouble for this swine flu play.
 
What is Double Trouble?
Stocks in high demand at Locatestock.com by investors looking to go short regularly perform badly. The high demand is a sign that shorts have unusually strong conviction that a stock is overpriced.
Stocks where insiders are selling significant amounts often underperform, as well.
Put these two negatives together, and you have a stock facing Double Trouble. At Double Trouble, we regularly present companies that face both headwinds, and examine why their stocks may decline.