Monday, June 8, 2009

Stock Alert: Novadel (NVD) Rising on High Volume, Will it Hold This Time?

For weeks NovaDel Pharma's (NVD) stock price has teased investors with fairly significant price gains (in terms of percentage) on high volume, only to retreat straight back down to it's previous trading level.

However, over the past five trading days NVD has inched upwards from 28 cents to close the day on Monday at forty cents, without the usually immediate decline.

Before taking the price spike seriously I waiting those five trading days of up price and volume to see if the increase would hold. It has, and since it closed near the high on Monday, it may be time to assume that the long awaited news regarding a partner for NovaDel's two approved drugs, ZolpiMist and NitroMist, may be pending.

ZolpiMist and NitroMist have been approved for some time now, but a distribution partner has yet to emerge. Investors have grown inpatient and speculate that maybe potential partners do not see value in NovaDel's 'oral spray drugs' which quickly deliver medications into a patients bloodstream in mist form instead of pill form.

Both of NovaDel's approved drugs use the company's proprietary oral spray NovaMist technology and are just two of a fairly robust pipeline of spray candidates being developed by the company.

With just a $25 million market cap, NVD has a lot of room to grow and any partnership news should push this stock to over a dollar, easily.

For forty cents, NVD is a great risk-reward investment and indications are, with speculative money coming back into the market, that investors are starting to take a position in the stock.

Anything below fifty cents is a steal, but I'm a buyer up to a buck.

Disclosure: VFC is long NVD.

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