NanoViricides, Inc (OTCMTS:NNVCD) Hit Hard by Reverse Split

The reverse split hit NanoViricides, Inc (OTCMTS:NNVCD) really hard, with a second day of losses, on $4.5 million selling volumes. NNVCD slid down more than 27% to $3.45 post-split price, moving away from the recent peak value of $5.25. And the news that the company would raise a further $9.9 million did not please investors, despite the realistic promise that NNVCD uplists to the NASDAQ tier.

NNVCD wrecked a perfectly nice climbing trend, achieved with PR messages and promises on an upcoming orphan drug to treat a significan tropical disease, dengue fever. Recently, NNVCD started a procedure with the European drug authorities to approve its DengueCide treatment.

Message boards were silent on Wednesday, but in the last few days opinions around the reverse split were unkind. The opinions critiqued the fact that NNVCD was not taking up enough drug safety trials, and instead focusing on technicalities around the stock listing.

NNVCD seems to be unaffected by the Stock Preacher mention on September 10th. In fact, the promotion may have eased the sales by increasing interest. Stock Preacher took up this ticker for an unknown compensation, probably for free. Interestingly, the newsletter mentions only the past performance of NNVCD and totally ignores the drop in the past two days.

While NNVCD sets, another longer-term contender, Advanced Cell Technology, Inc. (OTCBB:ACTC) had a strong day of gains, breaking over the 6-cents level as more than 2.5 million shares were bought up. ACTC was a high-loyalty biotech ticker that lost some positions in the past months, but is trying for a recovery.

Nuvilex, Inc. (OTCMKTS:NVLX) is also recovering, with two strong days of gains after a long sliding period, jumping from 11 to 15 cents.

But in the case of NNVCD, the new post-split price would hardly be a bargain for a long time. So we will wait and see if buying returns.

In case you have longer-term plans for NNVCD, it is still best to realize that biotech tickers tend to drop like rocks if investors dislike the news. So while NNVCD may sound like a success, it is best not to invest unaffordable sums, even if the price looks like a bargain.

Bigger companies have gone down in price and met with great difficulties in recovering, such as Titan Pharmaceuticals, Inc. (OTCBB:TTNP), and there is little reason why NNVCD should be an exception.