Borislav Tonev

Nuvilex Inc (OTCMKTS:NVLX) Calms Down A Bit

by Borislav Tonev September 3, 2013
80NVLX.pngNuvilex Inc (OTCMKTS:NVLX) closed Friday's session at $0.13 and this marked the end of a very turbulent month for the ticker. Between August 1 and August 29 a total of twenty-four new headlines appeared on the company profile at Yahoo! Finance but funnily enough, a very small portion of the articles was released by NVLX themselves. At the same time, more than fifty promotional emails hit our inbox over the last month and while this is indeed quite a lot of activity, we can't say that we're particularly surprised with it. Not least because we've been covering NVLX for quite a while now and we know that some people are desperate to boost investors' confidence in the ticker.

August, however, showed that not all of the traders following the venture are quite so optimistic. Two articles on Seeking Alpha appeared on August 15 and on August 27 and they both showed that currently, NVLX is nothing more than a small cap biotech company with big plans for the future. The contributors also noted that the company's financial statements leave much to be desired and they too seem to be quite upset with the fact that so many people are desperately trying to tout the stock.

OTC Journal, one of the paid research firms taking part in the campaign posted replies to the contributors on Seeking Alpha saying, for the umpteenth time, that NVLX is going to be a major biotech leader one day. Despite that, and despite the odd green session, the general direction was down and right now, with the long Labor Day weekend over, traders are anxious to find out what September holds for the ticker.

While it's probably quite early to say for sure, things don't appear to have changed all that much. Goldman Small Cap Research, one of the most active paid research companies involved in the campaign for NVLX woke up early today to tell us that investing in small cap biotech ventures could turn out to be a really good decision since one day, the bigger pharma 2BLFR.pngcompanies might decide to buy them out.

At the same time, an undisclosed third party paid Hot Stock Ace Publisher $15 thousand for the distribution of a couple of emails saying that, at the moment, the ticker represents a "huge bounce opportunity". The same people told us on August 16 that Blue Fire Equipment Corp (OTCMKTS:BLFR) is going to make a run in the right direction and they were also jumping up and down with 03SNET.pngexcitement about SourcingLink.net, Inc. (OTCMKTS:SNET) a few days prior to that. As you can see from the charts on the right, their predictions didn't turn out to be spot-on. So, what are the chances of NVLX performing better than SNET and BLFR?

Well, like we've always said, it's really difficult to predict. Although the additional hype did help the ticker open today's session at a value higher than Friday's close, it immediately slid down and right now, just an hour and a half after the opening bell, it's once again standing at $0.13.

Foreseeing the future movement is virtually impossible since the ticker's behavior has been extremely unpredictable, but we are seeing that a lot of investors around the message boards are getting tired of the long-lasting artificial hype campaign that's been running for the last couple of months. If they decide that they have really had enough, things could turn very ugly, very quickly.

Another Seeking Alpha article, similar to the ones we saw over the last couple of weeks, could also lead to a massive drop and this means that most of the shareholders are probably nervously following everything around the stock while they are secretly hoping that someone from the management team will finally go on the news and at least try to explain what has been going on around the ticker for the last couple of months. That might never happen, of course, but one thing is for sure - if it does, we'll be quite intrigued to see what NVLX themselves have to say about the erratic chart movement.

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