Nuvilex Inc (OTCMKTS:NVLX) Strolling Along On A Lot Of Artificial Hype

Nuvilex Inc (OTCMKTS:NVLX) effortlessly jumped by about 20% yesterday registering a daily trading volume of around 5.5 million shares. That is hardly anything new to the ticker but still, there has to be something causing it and we think we know what it is.

Of course, it’s the well known paid pumpers. Some emails arrived after the closing bell on Wednesday and a few more flew in our inbox shortly before 9:30 AM yesterday. Even after trading seized, the newsletters remained active which could suggest that we’re in for another interesting session today. The culprits include Stock Blaster, Massive Stock Profits, Penny Stock General and Penny Stock Crowd to name a few and they all have some pretty terrible track records. It wasn’t only the emails that kept investors’ enthusiasm alive, though.

The people who have been hired to boost awareness around NVLX for quite a while now also issued some more “news”. We’re talking about Goldman Small Cap Research (GSCR) and Stock Market Group (SMG) of course, and we intentionally used the inverted commas because these two entities have not actually given us any new information about the company ever since they started covering the ticker.

Instead, they prefer to write some overly optimistic and, more recently, quite amusing articles. GSCR for example, gave the ticker a push yesterday by publishing an analysis titled “The Stars Align For Nuvilex” while SMG came up with a prediction that NVLX will go head-to-head with NYSE- listed Eli Lilly & Co. (NYSE:LLY) and squash them which probably also had its effect on trading.

We read through GSCR’s article a few times and we failed to see how exactly the stars are a showing a bright future for NVLX. All the authors have to say is that the acquisition we talked about earlier could give NVLX the edge but in reality, this will only happen if the technology passes all the trials with flying colors and right now, we are waiting for none other than the company itself to give us an update on how things are going.

SMG however, don’t seem to be bothered about the fact that the management team are keeping pretty quiet about their operational progress and they prefer to put NVLX next to LLY, an established pharmaceutical company with a $59 billion market cap and a price of $52.59 per share. NVLX by contrast, are valued at $0.17 per share and even after yesterday’s run, their market capitalization amounts to around $79 million (which is still quite a lot). LLY recently reported their Q2 financial results and we can see that they have managed to register $5.93 billion in revenues and a net income of around $1.2 billion. By contrast, the last figures we have for NVLX cover the three months that ended on January 31 and during that period they registered no revenues at all while the net loss amounted to $340 thousand.

With that in mind, will NVLX be able to cross swords with LLY and win? They might, but they’ll need to have the treatment ready and as of right now, it isn’t.

In the meantime, the hype around the ticker is getting bigger by the minute. The number of emails we received after the end of yesterday’s session exceeds ten which is an unusually high amount considering NVLX‘s past promotional history. This alone is enough to be extra cautious, but when you consider the fact that there’s no new information both in terns of financials (we’re still waiting for the 10-K covering the twelve months that ended on April 30) and in terms of press releases (most of the headlines appearing on the company’s Yahoo Finance profile were published by the aforementioned analysts) the risks become even more significant.

Two other small cap biotech companies that experienced some active trading yesterday are A.P. Pharma, Inc. (OTCBB:APPA), who after a few fluctuations throughout the day finished the session back where they started and Affymax, Inc. (OTCMKTS:AFFY) who registered their highest percentile gains in more than a month.