Georgi Kamburov

Nuvilex, Inc. (OTCMKTS:NVLX) Brought Down By Annual Results

by Georgi Kamburov August 1, 2013
NVLXchart.pngYesterday Nuvilex, Inc. (OTCMKTS:NVLX) spiraled downwards on a much bigger scale. The stock lost 10% in the first hour of trading and was unable to recover closing at $0.147. Investors decided that the time to shed some of their holdings has come and more than doubled the traded volume of the previous session with 4.4 million traded shares.

Although slumping quite a lot NVLX was nonetheless climbing up the chart starting from $0.10 and reaching a high of $0.18. This general trend came to an abrupt end when the annual report for the fiscal 2013 was filed. In it investors could find little reassurance:

  • $199 thousand cash
  • $1,8 million total current assets
  • $3,7 million total liabilities
  • $12 thousand revenues
  • $1,5 million net loss

NVLX have a total of four employees, a negative working capital, negligible yearly revenues and quite serious net loss. Up to now the accumulated deficit has risen to the staggering $41 million. Outstanding shares are closing in on half a billion but there is still a lot of room for further dilution when the authorized amount is 1.49 billion.

The company has been a target of several paid pumps the earliest of which is from 2011. Currently they are once again being touted and we have received 13 distinct email alerts since July 29. The sums distributed among the newsletters vary greatly ranging from $3000 for Penny St0ck Spy and 007 StockChat, $4000 for PrimeTimeStocks and Moving Pennies up to $10000 for the Bull Report.

But the promotional efforts go beyond the usual pump techniques. As we covered at length in our previous articles, NVLX has hired Goldman Small Cap Research and Stock Market Media Group. Both entities have done an admirable job coming out with a new press release almost every day. We know that it must not be easy iterating the same thing over and over again which explains why they have resorted to some quite poetic statements.

Many investors have expressed hopes that a Phase III clinical trial might be initiated especially now that NVLX holds the world licensing for the cell encapsulation technology after acquiring Bio Blue Bird AG. Unfortunately such a possibility wasn't even mentioned in the annual report.

1ONCSchart.pngAs most biotechnological companies NVLX presents a risky bet. Whether their ongoing research proves to be successful or not is still in the realm of speculations. Investors should do their own due diligigence and decide for themselves if the reward is worth all the risks involved. In early trading today the stock is trying to recover currently 2% up.

Yesterday the once prosperous medical company Affymax, Inc. (OTCMKTS:AFFY) rose to become one of the most traded stocks although it dropped by 1% to close at $1.73. They were forced to fire everybody from their workforce and are undergoing total restructuring. OncoSec Medical Incorporated (OTCMKTS:ONCS, ONCS message board) who are also creating treatments for cancer had a much better performance surging by 11% to close at $0.3.

Comments 1

1. Guest
August 01, 2013, 12:58PM

Quotes Nuvilex is the object of a big e-mail spam pump-and-dump operation right now. Caveat Emptor.

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