GeoVax Labs, Inc. (OTCMKTS:GOVX) Maintains Mystery Run

Yesterday’s session was another wild ride for GeoVax Labs, Inc. (OTCMKTS:GOVX) shareholders. The ticker ran a further 43% up in its biggest green close for the last year, shifting its second-biggest volume for the same period.

GOVX is a company working on vaccines targeting HIV and AIDS. The development of those products has been ongoing for quite some time, with vaccines intended for both preventive use and for use by infected patients, to reduce their need for medication.

The company has a reasonable amount of cash on hand and thin liabilities resulting in a positive working capital. Still, the company’s recording revenues from National Institute of Health grants and not from product sales or services as the vaccines are still in the pipeline. The NIH grants are explained to be the only current source of revenues in the company’s filings.

The grant money fully covered R&D expenses in the last quarter and GOVX logged modest net loss. The latest quarterly filing states that the cash reserves of the company combined with the grant money will be enough to fund GOVX until the second half of 2014, after which additional share offerings to raise cash are planned.

The company’s recent explosive run is something of a mystery. There have been no major new press announcements from the company that could trigger a huge wave of optimism. There is also no immediately detectable effort to pump GOVX stock through emails or printed mailers, so the erratic upward movement is difficult to explain.

Traders on discussion boards are for the most part equally puzzled about the ticker’s green run. Considering the fact that GOVX more than doubled over just five sessions, a retrace is very likely. Such wild climbs make it very difficult to even maintain a flat line at the new highs and correction is usually swift and often severe, so traders are advised to tread with care.

There were other big OTC biopharma movers among yesterday’s heavy-volume stocks. Provectus Pharmaceuticals, Inc. (OTCMKTS:PVCT) gained 7%, stopping at $1.11 per share. InVivo Therapeutics Holdings Corp. (OTCMKTS:NVIV) closed less than 1% up after a volatile intra-day run that generated large volume.