Trade Volume Can Speak a Lot About Momentum of a Stock

NEW YORK, NY / ACCESSWIRE / March 16, 2017 / Two biotech firms, Rexahn Pharmaceuticals and Novavax are low priced stocks with a number of interested investors, scoring close to 8 million and 6 million shares respectively in Wednesday’s trading. It is true that numbers don’t lie. It is also true that an incorrect interpretation of the numbers can lead an investor down the wrong path. Biotech companies can be some of the most difficult to correctly assess, but it doesn’t need to be a guessing game.

RDI Initiates
Coverage:

Rexahn
Pharmaceuticals, Inc. https://ub.rdinvesting.com/news/?ticker=RNN

Novavax, Inc. https://ub.rdinvesting.com/news/?ticker=NVAX

The company posted a 3 cent per share gain on Wednesday settling in at 0.485 cents a share to close the day. Rexahn Pharmaceuticals is a clinical-stage biopharmaceutical company that researches, develops, and delivers cancer treatment drugs. Currently, the Phase 2 results of its RX-3117 experimental and lead drug are hoped for release sometime in the 2nd quarter of this year but not later than the 3rd quarter. Its Phase 1 FDA trials were promising, leading to the early optimism of the Phase 2 report, which are specific to the treatments of pancreatic and bladder cancer. Rexahn reported loss of $16.4 million from operations for year 2016 and used $13.2 million of cash from the balance sheet in a year. With offering of additional shares it managed to receive $10.1 million from the investors, leading to $20.3 million in cash reserves at the end of year, sufficient to keep it operational through the first half of 2018. Historical price data suggests that the stock has tendency to gain very quickly and receding gradually and it has beaten a lot from the period during February, 2014 to February, 2017. Although the availability of sufficient cash and promise of a successful Phase 2 result makes Rexahn an alluring opportunity for risk-oriented investors.

Access RDI’s Rexahn Pharmaceuticals Research Report at: https://ub.rdinvesting.com/news/?ticker=RNN

Novavax stock traded in a 4 cent range on Wednesday, closing up 1 cent at $1.39 a share. The company is specialty biopharmaceutical that performs research, development and commercialization of women’s health drugs and infectious disease treatments. It also develops adjuvants, which are what can be described as “vaccine stimulants” – drugs added to a vaccine that increase the body’s immune system response to a vaccine. FDA safety tests are required for adjuvants, requiring clinical trials before being made available to the public.

The latest news has brokerage firms generally giving the stock a “hold” rating with two other recommendations to buy but none to sell. These recommendations are somewhat offset by a glance at the Novavax profitability analysis that shows the company has a net profit margin, operating profit margin, and gross profit margin all negative. It had posted a 4th quarter net loss of 21 cents a share, though that was less by 8 cents from a loss of 29 cents a share for the same quarter previous year. As the revenue for the year 2016 more than halved to $15.35 million from last year revenue of $36.25 million, company has increased spending R&D by more than 45 percent to the amount of $237.9 million for the year 2016 and yet has sufficient availability of $235.5 million in cash for the current year.

Access RDI’s Novavax Research Report at: https://ub.rdinvesting.com/news/?ticker=NVAX

Our Actionable Research on Rexahn Pharmaceuticals, Inc. (NYSE MKT: RNN) and Novavax, Inc. (NASDAQ: NVAX) can be downloaded free of charge at Research Driven Investing.

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Disclaimer: This article is written by an independent contributor of RDInvesting.com and reviewed by Hemal K. Gandhi, a CFA® charter holder. RDInvesting.com is neither a registered broker dealer nor a registered investment advisor. For more information please read our full disclaimer at www.rdinvesting.com/disclaimer.

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