Borislav Tonev

Emails And News Help Nuvilex Inc (OTCMKTS:NVLX) Recover

by Borislav Tonev September 11, 2013
75NVLX.pngAfter a rather horrific performance last week, Nuvilex Inc (OTCMKTS:NVLX) appears to be in the process of bouncing back in the right direction. Certainly, the stock has quite a lot of loyal supporters and we're pretty sure that they liked Monday's session when the ticker gained 23%. They're probably also pretty happy with the performance from yesterday when another 10% were added, but is the recovery due to the company regaining the investors' confidence or is something else involved?

Well, we're not sure that NVLX's management team were the only ones to push the ticker in the right direction. As we mentioned on Monday, David Cohen was hired to send in a couple of alerts and the third parties probably decided to get him in on the bandwagon in order to stop the fall that was triggered by some less than positive articles published at Seeking Alpha over the last couple of weeks. Mr. Cohen's emails certainly did give the ticker a boost and when we last heard from him, he said that the campaign will last for a couple more days which might just result in some more positive movement.

00SANB.pngThe thing is, we have Mr. Cohen's track record at our database and looking at it, we find it really hard to foresee any sort of long-term growth for NVLX. In our previous article, we wrote that his newsletter was part of the pumping army during the campaigns for Seven Arts Entertainment Inc (OTCMKTS:SAPX) and BluForest Inc (OTCMKTS:BLUF) and now we would like to present you with another one of his catastrophic promotional failures - Sanborn Resources Ltd (OTCMKTS:SANB). If it's true that a picture says a thousand words, then the chart on the right should give a pretty good idea of how badly that one ended up.

Still, NVLX did surprise us somewhat yesterday when they issued a press release. Although a new headline hits the company's Yahoo! Finance profile every couple of days (sometimes more often), the announcements coming from the management team themselves have been few and far in between. Most of the articles appearing on Yahoo! were published by paid research firms, Goldman Small Cap Research and Stock Market Media Group and they all talk about FDA approvals, buyout interest from big pharmaceutical companies and other things that are not particularly relevant to NVLX's current situation.

Yesterday, however, the management team themselves decided that some sort of update is needed and they announced that they have signed a contract with Fisher BioServices, Inc, a subsidiary of Thermo Fisher Scientific Inc. (NYSE:TMO). According to the press release, TMO's daughter company will take care of the storage of the all-important cells while NVLX prepare themselves for the much talked about Phase III trials. Then the announcement continues to talk about the number of people working at TMO, the proximity of the storage facilities to the company headquarters and other such things.

Despite that, we must say that the contract is definitely a step in the right direction. Above all, it shows that the company is determined to get things into the all-important Phase III trials (which is more than can be said about other small cap ventures) and the fact that they have contacted a big corporation like TMO to help them with the process also gives investors a sense that things really are moving.

Yet, once again, there are no deadlines and not even a glimmer of a projected date for the start of the last phase of testing. That, we reckon, is the biggest problem at the moment. Because of the negative reviews from the Seeking Alpha, the pressure from the pumpers and the resulting hesitant stock performance, many shareholders are having a panic attack. This could lead to some rather horrific results and the only way to calm things down a bit is to present investors with some factual evidence that the situation will be improved soon.

Unfortunately, NVLX seem to be unable to do that which, coupled with the presence of entities like David Cohen, Goldman Small Cap Research and Stock Market Media Group, makes the stock performance rather unpredictable. Having this in mind is, we reckon, absolutely crucial before making your final decision on NVLX.

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