Nuvilex, Inc. (OTCMKTS:NVLX) Rises on Promotion, Drug Approval Hopes

Nuvilex, Inc. (OTCMKTS:NVLX) is just entering the sweetest spot for a drug company. An upcoming drug approval is stocking the fires and lifting up the ticker. But to add fuel to the fire, NVLX is offering a medical marijuana solution, thus riding one of the biggest trends on the penny stock markets. So far, the company’s press releases hype the benefits of cannabis, while trying to sound like a pharmaceutical company with a more classical approach to the creation of drugs.

Of course, the “good chance” of approval is mostly in the eyes of analysts from Goldman Small Caps Review who only see the business side of the drug approval cycle. NVLX is researching a pancreatic cancer drug derived from marijuana, boosted by a large initial investment. But this still does not guarantee trial success, much less the adoption by medical practitioners and the right pricing and marketing. So far, NVLX has the following resources to continue its development:

• $67,000 annual revenue as of april 2012

• $1.9 million net loss

• $16,000 cash

• $2 million total assets

• $3.7 million total liabilities

On a smaller scale, this is the typical drug tester, burdened by the price of research and a period without revenues. But most of the fundamental data are often disregarded on optimism. On Monday, NVLX added more than 27% to $0.128, a still low enough price to garner attention and a greater ease at climbing. Trading volumes exceed 5 million shares per day.

Why Penny St0cks added to the growth with a June 6th minor promotion, a mention with a compensation of just $5,000. This is the regular price for one-off emails, which land every few days since April 15th. This, plus regular outlooks on drug tests and the promise of medical marijuana made for the smooth rising trend, at one point lifting NVLX up to 500%.

NVLX seems like a lucky ticker, always on the rise and hardly suffering the ends of promotions. Currently, this medical marijuana contender is at the top of its game. Still, in the shorter term medical marijuana tickers do best with the help of a promotional campaign. Even industry bellwether Medical Marijuana, Inc. (OTCMKTS:MJNA) had its weak moments when the pumpers abandoned it. It is best not to pin too much hopes on this sector unless you are also prepared to lose a large part of your investment.