Hristina Beeva

NanoViricides, Inc. (OTCBB:NNVCD): Buyers Return Before Expected Uplisting

by Hristina Beeva September 13, 2013
After three earth-shaking days, post-split buying returned for NanoViricides, Inc. (OTCMKTS:NNVCD), and the ticker grew by nearly 10% to $3.69. Volumes were $1.63 million, lower than the sales of the past days. The release of new financial results may have returned interest. NNVCD0913.png

Here is what the updates contain, resources and drawbacks for the continuing efforts of NNVCD to expand its drug portfolio: ACTC0913.png

  • Zero revenues
  • $6 million operating loss
  • $2.1 million quarterly net loss
  • $14.2 million cash, up from $9.2 million in June 2011

The data are up to March 2013, and although NNVC will have to show more in the upcoming quarters, for now it looks equipped to take on more development costs. Unfortunately, so far NNVCD has had no marketing success, and finances its operations through dilution.

The bigger news for NNVCD will be the potential uplisting to NASDAQ, for which forums are buzzing. There is mention that it may happen within weeks, and lift up the ticker price to higher levels, above $5 post-split. This may drive activity, especially given that NNVCD was only recently at about $5.25. AMEX is also given as a possibility. And whether NNVCD succeeds or not, the potential of the bigger exchange may make investors take up more shares and chase possible gains.

Supposedly, the exchange news and the rapid changes may distract investors for a while from the slowness of testing and attempting to release new drugs.

The biopharmaceutical sector loves bright promises, and stocks fall for the lack of those. In the case of Advanced Cell TechNVLX0913.pngnology, Inc. (OTCBB:ACTC), the worldwide understanding of stem cells may be promising, but the stock price so far is disappointing. After a small recovery, ACTC slid back, swinging again between 6 and 7 cents for an endless drama.

Nuvilex, Inc. (OTCMKTS:NVLX) had a few good days, but now slides back a little, to 14 cents on mid-range selling volumes of about $350,000.

Outside the PR noise, NNVCD was hardly promoted, with only 4 emails since 2012. The last one came in on September 10th, and it was not really an endorsement, just a way for Stockpreacher to boost its past record. Never mind that NNVCD slid badly just on the day of the email, and the pumpers never mentioned the falling potential.

If you need to stock up, keep in mind that even high-quality pharmaceutical companies are threatened by deep falls once enthusiasm wears off. Sometimes the falls happen within days, so avoid investing sums that you cannot afford to lose.

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