InVivo Therapeutics Holdings Corp. (OTCMKTS:NVIV) Blasts Off On News
The year began promisingly for the stock of InVivo Therapeutics Holdings Corp. (OTCMKTS:NVIV) as it was trading above the $2 per share mark after the steep climb it made back in December 2013.
Things, however, turned sour in mid-March and NVIV plummeted on a high volume after which it continued to slide down the charts. The percentile movements after the initial crash were small but the general direction was obvious and the ticker slid as low as $1.50 per share in the end of last week.
The most probable culprit for the crash is the financial report, covering 2013 which was posted back then and contained some alarmingly big numbers when it came to net loss.
- cash: $13.9 million
- current assets: $14.6 million
- current liabilities: $2.2 million
- total liabilities: $4.2 million
- revenues: $0
- net loss: $38.7 million
While the net loss is indeed quite big, the bright side is that the company has not only managed to keep a large amount of cash on hand, but it is also $1 million more, compared to the previous year and is enough to cover the liabilities and current operations.
Furthermore, the company had some great news to share with us yesterday. NVIV has finally began the shipment of its device for spinal cord injury treatment to commence its first clinical trial. Back in the end of 2013, they were hoping for this to happen in the first half of March, but still, better late than never.
On the downside, this setback has surely made some investors angry after they lost money, because if this had happened in March, the impact that the financial report had on the ticker’s price would have surely been smaller.
Yesterday’s news were enough for the stock to regain some of this lost value as it climbed 22% to a close at $1.84. We also saw the biggest volume in a little over a month, with some 710 thousand shares changing their owners, which generated nearly $1.3 million in trade value.
There is still a lot of time until NVIV starts producing revenue, however, and it is good that they are managing to have a decent amount of cash in their coffers to support their operations for the time being.
Still, this doesn’t mean that you should skip on doing your due diligence and weighing out the risks. After all, if you decide to go for the long run you will have to be able to keep your nerve at hard times.
