Are Invivo Therapeutics Holdings Corp (OTCBB:NVIV) Setting Up a Pump
Invivo Therapeutics Holdings Corp (OTCBB:NVIV) haven’t been pumped for quite a while. That, however, doesn’t mean their stock isn’t in it’s prime even after the last three sessions ended in the red.
The last 3 trade sessions didn’t go well for NVIV as they slided a total of 15% from the $4.512 on June 10, the day before their stock price started to go down, to the $3.86 that they are now at. It seems that some of the people that were holding on to their stock started to have second toughts as yesterday’s volume was pretty big. NVIV traded in a little over 1 million shares yesterday, with total trade value estimated at $4.09 million.
Having an avarage volume of 328 shares, that number stands out. This is due to the fact that NVIV aren’t like most of the OTC Market companies that have really big jumps in volume and after that they “die” with very low trades. NVIV stand out from other OTC companies for another reason as well and that is their financial state. Since the last time we covered them the new quarterly report covering the period ended March 31, 2013 has been filed with the SEC and you can see the numbers of prime interest contained in it listed below.
- cash: $10 million
- total assets: $13 million
- current liabilities: $26 million
- no listed revenue
- net loss: $13 million
As you can see they have a lot of cash on hand, however, the liabilities and the massive net loss take their toll. The reality is that NVIV are yet to complete their spinal cord injury treatment and this isn’t allowing their stock to continue growing and such slumps are inevitable. Since they have only positive press releases (for now), we think that the price of their stock will make a comeback.
In the light of more recent filings with the SEC we assume that there is a possiblity for an incoming pump to boost their stock, which would in term allow their CEO and CFO Frank Reynolds to acquire crucial financing that will carry them further with the development of their treatment. This is also suggested in and 8-K filed yesterday. The 8-K in question was about Mr. Reynolds’ decision to trade some of his own company stock in order to boost investor confidence in NVIV. Will it be for that or for his own profit? Well, probably for both. This is why we advise people to do their due diligence before investing in any company.
If they do go up after this bad period for their stock it will come as no surprise, because it will not be the only ticker jumping, even without a pump, after a long period of slumping. Recently Affymax, Inc. (OTCMKTS:AFFY), a ticker that we covered yesterday, started to go up after it went below the $1 mark in 5 trade sessions that ended in the red. In the last three days they are going gradually up and are now traded at $1.18.
At least for now NVIV aren’t relying on paid promoters to boost their stock’s price. However, even if they decide to, its not sure if it’s going to be up for long. A prime example of a one day pump that failed just after 1 trade session is Tungsten Corp. (OTCMKTS:TUNG), which we covered on June 12. The drop was not that big, but it surely stopped their momentum as the ticker fell 1.56% going from $0.64 at market close on June 12 to $0.63 at the end of yesterday’s trade session.
