Today , George Budwell with Motley Fool presented an article today entitled "Don't Get Greedy With Novavax, Inc. Stock " along with a subtitle " Novavax's abysmal track record should be a huge red flag for potential shareholders.
His basic premise is that investors do not believe the company is able to deliver any products to the market place.
He writes about the " negative sentiment " associated with Novavax due to big promises , failed business strategy , and shareholder dilution . He bases all his conclusions on what he perceives as the failings of the past . OK , understood.
Now let's present a more balanced future outlook .
Thank you , Mr Budwell for reminding us that Novavax has been around since 1987 . May I remind you that CEO Erck assumed the offices of President and CEO on April 19, 2011 . He started building the current Management team at that time.
Further Mr Budwell writes " The company, however, has been awfully good at convincing investors to buy stock based on the promise of future products ....." This comment is shallow and a cheap shot because there is no convincing . An effective Management team presents data, information and forward looking statements so that Investors may make their own informed decisions.
Further Mr Budwell writes " Novavax's late-stage flop in RSV was completely in line with the disappointing trajectory of this field for the last five decades. " He makes no mention that no other enterprise reached the RSV clinical trial phase III before and the possible affect the low attack rate may have had on the results.
Mr Budwell writes " Novavax's business strategy of targeting such diseases hasn't been kind to investors. " Yet he states that "management could be right " in pursuing Nanoflu and RSV/m to " transform the company into a commercial-stage entity " .
When negative market sentiment is attached to a company it is easy to write pieces like this .
Look we know that Novavax Management has made some decisions that did not reach the intended results . The company is now focused on Nanoflu and RSV/m and the data to date for both trials is very promising . As I have written before, the major risk has now shifted from the science to securing the capital ( and the cost to shareholders ) to move through the regulatory filings and reach the commercial market !
Watching the share price daily declining is like watching yourself slowly bleeding . And he writes about not being " greedy " ! Some of us longs believe that that provided the current trials move forward successfully , the necessary capital will find a pathway to Novavax !