Nuvilex Inc (OTCMKTS:NVLX) Gets Another Green Surge
It’s been a while since we last wrote about Nuvilex Inc (OTCMKTS:NVLX) but the 20% added over the last couple of days and, more particularly, the increased dollar volume from yesterday urged us to check on the company and see what has been going on during the last three weeks.
Looking at the chart, we can see nothing that could surprise us all that much. When we last covered the ticker, it was the target of a paid promotion carried out by the famous David Cohen and, as we wrote on September 11, the pump was proving to be somewhat successful as the share price nudged $0.15. As soon as the alerts stopped, however, the slide began. The third parties decided to give it another go, this time hiring a range of smaller pumping outfits (the most prominent was Hot Stock Ace Publisher who received $15 thousand). More than twenty emails hit our inbox between September 15 and September 30 but they did little to contain the fall.
Friday saw the first positive session for NVLX in more than a week and the solid performance displayed yesterday suggests that the ticker might be on its way to full recovery. But is there anything to support a more long-lasting ascend?
Well, the news doesn’t give us much hope. A new headline pops up at the company’s Yahoo! Finance profile every couple of days but, as we’ve mentioned numerous times on these pages, a very small portion of the articles have been written by NVLX themselves. Most of the entries are published by paid research firms Goldman Small Cap Research, Inc. (GSCR) and Stock Market Media Group (SMMG). It wouldn’t have been so bad if they were actually giving us some kind of new information but in reality, the aforementioned entities just rewrite NVLX‘s announcements over and over again making them sound as exciting as possible.
The company did issue a press release of its own on September 17 when they announced that they have contracted an enterprise called Inno Biologics which is supposed to help them initiate the phase III trials. Of course, GSCR and SMMG are now retelling the story every couple of days trying to convince us that the deal is a massive milestone, despite the fact that NVLX are, once again, reluctant to give us any sort of deadline for the start of clinical testing.
Another, more important event happened during the last three weeks, though – the company published the 10-Q covering the period ended July 31. As you can imagine, this is a major piece of news since it gives potential investors and shareholders some information about NVLX‘s current financial situation. Here’s how things stood at the end of the reported quarter:
- cash: $206 thousand
- current assets: $1.8 million
- current liabilities: $994 thousand
- no quarterly revenue
- net loss: $4.6 million
You can see straight away that the liabilities have been greatly reduced which means that NVLX needn’t worry about the negative working capital at the moment but, apart from that, little has changed. They still say that they don’t have enough cash to start the clinical trials and they’re still dependent on outside funding to sustain operations.
Speaking of which, as we mentioned, a large portion of the current liabilities have been dealt with over the last quarter, but unfortunately, quite a lot of stock was issued along the way. More worryingly, a lot of shares were given out at some massive discounts compared to the current prices. In May, for example, NVLX printed a total of 26 million shares in exchange for just $502 thousand worth of debt. This brings the per share value to less than $0.02 and you probably know that if this stock hits the open market (if it hasn’t already), it could wreak even more havoc with the already chaotic chart movement. Having this, as well as the rest of the risks associated with the massively increased public awareness, in mind is absolutely crucial before reaching your final decision.
Other tickers that have been subjected to quite a lot of unnecessary touting over the last couple of days include Bullfrog Gold Corp (OTCMKTS:BFGC) and Cloud Security Corp (OTCBB:CLDS) and you can see from the charts on the right that their performance from yesterday is not really the stuff of dreams (putting it mildly).