Borislav Tonev

N-Viro International Corporation (OTCMKTS:NVIC) on a Perilous Climb

by Borislav Tonev April 1, 2016

N-Viro International Corporation (OTCMKTS:NVIC, NVIC message board) has been heating up over the last few days and straight away, we should note that the steep price appreciation is making the stock rather dangerous.

The ticker logged its fourth consecutive green session yesterday and it managed to reach a price of $1.45 per share – the highest close in over six and a half months. Of course, there's nothing wrong with seeing a stock climb higher and higher. When there's nothing concrete to support the surge, however, things could turn ugly in a very short period of time.

And in NVIC's case, there's absolutely nothing to suggest that you should be accumulating shares. There's been no news since October and, safe for a notification of late filing for the 2015 10-K, there have been no SEC documents that could get investors all fired up. There isn't even a paid promotion.

At the same time, the latest 10-Q suggests that not everything is going according to plan. On September 30, NVIC had:

  • cash: $25 thousand
  • current assets: $307 thousand
  • current liabilities: $2.1 million
  • quarterly revenues: $280 thousand
  • quarterly net loss: $488 thousand

The sales have dropped both on a quarter-over-quarter and on a year-over-year basis and if you go through the older reports, you'll see that this is more of a trend, and not a one-time occurrence. There are also a few notes that are in default.

Silver lining spotters will probably point to the fact that NVIC isn't among the OTC's heavy diluters, and they'd be right. Even the convertible debentures can be turned into stock at a fixed price of $2 per share which means that, for the time being at least, they don't pose an immediate threat. This doesn't mean that an investment should be taken lightly, though.

Make sure you don't let market momentum get the better of you.

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