Nuvilex Inc (OTCMKTS:NVLX) Slowed Down
This week hasn’t been the best for Nuvilex Inc (OTCMKTS:NVLX). Monday started on a positive note with 17% gains compared to last week’s close, but on Tuesday, the ticker fell by around 13%. While there were some fluctuations, NVLX remained virtually stationary on Wednesday , but yesterday, there was quite a lot of stock changing hands (11 million shares) which, unfortunately resulted in a fifth of the value lost by the end of the day.
Despite the poor performance from the last trading session, it’s fair to say that the ticker has been performing admirably during the last months. The value gained since April 15 amounts to 81% and the figure for the last two months is even more impressive – 130%. This means that even with the downfall from yesterday, the market value of the company hovers around $64 million. But what exactly will you get if you decide that you want to take over NVLX?
Well, as we wrote in some of our previous articles, not a whole lot. At least in terms of financials, things don’t look so bright as you can see from the summary below:
- cash: $33 thousand
- current assets: $1.4 million
- current liabilities: $3.6 million
- quarterly net loss: $376 thousand
- accumulated deficit: $41 million
You might argue that indeed, the situation is a bit tough at the moment, but starting up any company, especially one in the bio-technology sector is always difficult and that soon the real potential will start to shine.
That might just happen but then again, there is nothing to guarantee the success. At the same time, there are some things to suggest that the bright future is not that certain.
The first thing is found in the figures above. The task that they have undertaken at the moment is quite a difficult one and it will require massive amounts of investments. If their current financial situation is similar to the one that we see in the 10-Q, they will need to borrow a lot of money which will increase the liabilities even further. That, in turn, will make their lives a lot more difficult and will eventually push the price South.
The other thing that makes us rather dubious about the success of the new cancer treatment technology is NVLX‘s history. They have tried their hands on developing all sorts of products for the medical and cosmeceutical industries and their success has always been rather limited.
Before they started work on the encapsulated cells that will, supposedly, treat cancer one day, they were marketing a new sort of permanent tattoo ink that was easily removable. Further back in time, they had products to battle the teenagers’ worst nightmare – acne – and we can see a host of other business plans ranging from the development of immune-boosting pills to devising methods that are supposed to keep fruits and vegetables fresh for a longer period of time.
As you have probably guessed, none of these worked out quite the way they wanted and you would agree that treating cancer is, by far, their most ambitious undertaking.
Sure, if they do manage to do it, NVLX will become a huge company, but if they don’t, they will remain just another penny stock that caused quite a lot of people to lose money. Right now, only entities like Goldman Small Cap Research and Stock House Group as well as some overly optimistic users on the message boards are saying that NVLX‘s success is all but certain. Bear in mind, however, that they have been paid to do so, which puts a big question mark over their credibility.
And even if that wasn’t the case, if you really focus for a minute and read through all the things that have been published during the last couple of months on all sorts of websites, you will see that most of them are nothing but optimistic projections, hopes and dreams. This begs the question: “Isn’t the artificial hype just a little too much?”. We’ll let you decide.
