Nuvilex Inc (OTCMKTS:NVLX) Jumps Up Again
On July 11 Nuvilex Inc (OTCMKTS:NVLX) announced that they have finally managed to complete the acquisition of all the shares of Bio Blue Bird AG (BBB). This might not sound like that big of a deal, but it’s actually quite important for NVLX‘s success since BBB are the holders of the worldwide license for the revolutionary live-cell encapsulation technology that should treat pancreatic cancer. The share purchase agreement was first signed way back in 2011 and having that in mind, you’d probably think that as soon as traders learn about its completion, the ticker will absolutely explode. We thought that as well, but it would seem that investors just couldn’t be bothered. The trading volume last Thursday amounted to 1.1 million shares which is less than the average for the last thirty days and the price moved by not more than 0.46%. On Friday, trading was even less active and while NVLX added a further 3.2% to the value, this is still pretty poor performance considering the significant milestone that the company reached.
At the same time, yesterday, an entity called Goldman Small Cap Research (GSCR) issued an update to their report containing a $0.75 price target and as soon as that one went online, the traders went absolutely berserk. More than 3.7 million shares changed hands and the total price increase amounts to 28% with not a single drop below the open of $0.113. That is the solid performance that we expect to see when NVLX themselves announce the major developments around the company but instead, we get it when a researcher (who admits that he received $750 for his due diligence) says that, in his opinion, the ticker will run in the right direction.
Speaking of which, GSCR’s (more specifically, the person who writes the optimistic reports, Rob Goldman’s) predictions don’t always turn out to be 100% accurate. Take Multi-Corp International Inc (OTCMKTS:MULI)’s chart on the right, for example. Mr. Goldman issued his report for them on June 7 and he put a price target even more optimistic than the one for NVLX – $2.50. Now, a month and a bit later, the ticker stands at $0.675 or around 44% below the price when the coverage was published.
An even bigger GSCR failure was the eleven-page report on Norstra Energy Inc (OTCMKTS:NORX) issued on June 6. The near term target for NORX was $2.00 and the twelve month barrier was set at $3.50. Instead of showing some signs that these sort of prices can be achieved, NORX received a temporary suspension order on June 26 which means that their shares are currently traded on the Grey Market and we all know that an escape from there is nigh on impossible.
But let’s get back to NVLX and see if they will be able to turn the tables and actually reach the rather high price set by Mr. Goldman. Indeed, the completion of the agreement with Bio Blue Bird was long awaited and it is definitely a step in the right direction, but let’s not forget that NVLX have set themselves quite a task – namely, finding a cure for cancer and other terminal diseases like diabetes. They (or in most cases, paid entities like GSCR) say that the clinical trials are going rather well, but the truth is, nothing can suggest that an FDA approval is just around the corner. If you have seen our articles on Affymax, Inc. (OTCMKTS:AFFY) and A.P. Pharma, Inc. (OTCBB:APPA), you will probably know that problems with the FDA could cause quite a lot of headaches for investors.
Financially speaking, things are not that great either. The completion of the agreement with BBB means that they were able to make all the necessary payments on that front, but according to the latest quarterly report they stopped the sales of all their previous products in an attempt to focus on the cancer-treating technology. This means that multitasking will not be an issue, but on the other hand, they might be struggling for cash in the near future.
All in all, while progress is indeed visible, the excitement around the ticker might prove to be too much at one point. In addition to this, NVLX still have quite a long way to go until they succeed and that’s why a potential investment still hides its risks. Make sure you consider all of them before making your final decision.
