Millions of Opportunities For NanoViricides Inc (OTCBB:NNVC)
The latest trade session for NanoViricides Inc (OTCBB:NNVC) didn’t go so well. On May 24 their stock dropped 8% from the price of $0.72 they managed to get to in two days of trading closing at $0.66.
This may be due to the fact that they are being touted by paid promotional newsletters that didn’t get paid for their campaign. Our point is that they are probably doing this promotion for NNVC in order to clean their hands a bit from previous pump disasters.
The deal is that NNVC are a company that might have a bright future, however uncertain that is. We think this way because they have a rather healthy financial state for a penny stock company. Let’s remind ourselves of the numbers of prime interest from their last quarterly report covering the period ended March 31, 2013 and see what they show.
cash: $15 million
total assets: $16 million
current liabilities: $4 million
revenue since inception: $0
net loss: $3 million
They seem to have enough resources to carry out their operations and frankly they don’t have that much losses and debt. The revenue of $0 since inception isn’t that big of a problem either, because after all they are a pharmaceutical company and are yet to go through the extensive process of testing an approval.
This might help keep their stock afloat for the near future, due to the fact that if they are going to file for approvel of their drug they are going to have to go through some testing phases. The FDA approval itself also takes quite a while.
This put’s their stock in a rather good position for the moment as a negative answer from the FDA might crash their stock as we have seen that happen to many other penny stock’s that are in the medical sector.
The trouble now comes from the pumpers that are touting their stock. All the artificial hype that they are creating might cause big drops due to high volumes of trading. This may be the reason for the downwards movement of their stock on May 24 that can be attributed to the abnormally high volume of stock traded the previous day totaling 1.8 million shares that came at a total trade value of $1.4 million.
With all that in mind be sure to do your due diligence and if you do decide to take the risk and invest in NNVC be sure to keep a close eye on all developments to avoid getting burned.
