The Nuvilex Inc (OTCMKTS:NVLX) Pump Is No Longer Effective
We wrote a few articles on Nuvilex Inc (OTCMKTS:NVLX) and in them we showed you that currently, while the mailing activity has been relatively modest for the last couple of weeks, there are still some people who seem quite desperate to give the price a push. Indeed, after sending more than 20 emails in just over a month, it would appear that the paid newsletters have gone tired of NVLX and we haven’t heard from them since May 24. So, who’s going to keep investors excited now?
Well, as we already mentioned in our previous articles, the culprits are two entities called Goldman Small Cap Research and Stock House Group (who for some reason recently changed their name to Stock Market Media Group). But since they’re not using the emails, how are they able to raise awareness around NVLX?
Well, they do it by issuing press releases every couple of days in which they explain over and over again how NVLX have a unique piece of technology that will help them cure cancer, diabetes and other terminal diseases. They speak about the encapsulated cell as if it is the magic pill that we’ve all been waiting for, conveniently missing out on the fact that before the technology can be implemented, it needs to go through quite a lot of testing and there’s absolutely no guarantee that the whole thing will work eventually. In that case, why are they bothered about NVLX so much?
It’s simple, really. They’ve been paid to do so. Stock Market Media Group’s disclaimer says that they have been compensated $2,200 for the awareness campaign while Goldman Small Cap Research’s fine print discloses that they receive $500 for each and every article that they publish on NVLX. Can we trust them, though?
Well, the decision is all yours, but while you’re thinking about it, you might want to bear in mind that Stock Market Media Group issued an optimistic report on Viking Minerals Inc (OTCBB:VKML) back in November, 2012 and Goldman Small Cap Research performed a similar treatment on Daulton Capital Corp, soon to be known as ARX Gold Corp (OTCBB:DUCP). We have included the two charts on the right in case you’re wondering what the results are. But what about NVLX? Is there anything to suggest that they could break the mold and surprise us?
Seeing how the ticker is performing so far, we have our doubts. Indeed, the whole touting that started way back in April did manage to give the price a significant push in the right direction, but the excitement seems to be dying out at the moment and judging by some of the posts on iHub, investors and shareholders are not really happy with all the optimistic articles from Goldman Small Cap Research and Stock Market Media Group since they think that the artificial hype is starting to depress the price. We’re somewhat inclined to agree with them.
There are also some questions in regards to NVLX‘s financial situation. We already wrote in our previous articles that a $2.2 million working capital deficit and a quarterly net loss of $1.2 million are not signs of a thriving company.
On the other hand, they do seem to be developing an exciting piece of technology and if it really is as revolutionary as they would have us believe, they could be in for quite a growth. It’s only a shame that it is still too early to say for sure if they’ll manage to pull it off.