The Promotional Capmaign for Nuvilex Inc (OTCMKTS:NVLX) Starts to Pay Off
The stock of Nuvilex Inc (OTCMKTS:NVLX) is going through a prolongued pump with emails coming in even today. After a few bad sessions for NVLX before the weekend and memorial day’s lack of trades as it is a holiday for the stock market NVLX are starting strong today. They opened 15% up from the trade session on May 24 at $0.160.
At the moment, however, their advantage diminished to 7% from the last trade session as they came down to the $0.150 mark. It will surely be an interesting day of trading as the promotional emails are also being aided by optimistic press releases from NVLX.
Before we take a closer look at the most recent of the press releases let’s take a moment to see what the financial state of the company is, as seen in the numbers of prime interest from their latest quarterly report covering the period ended January 31, 2013.
cash: $33 thousand
total current assets: $1.4 million
total current liabilities: $3.6 million
revenue: $12 thousand
net loss: $1.2 million
As you can see, at least they have some cash on hand. That, however, doesn’t make up for the fact that they have over $3.6 million in current liabilities, which is a bad sign. Another disturbing thing is that the field in which we are supposed to see what they have on their hands in the form of property, plants and equipment is blank.
This leads us to question where exactly are they carrying out the testing for the drugs that they are allegedly developing and would they be able to produce them if they get the FDA approval after they finish with the testing phases.
That aside let’s see what they have to say in their latest press releases. For quite a while they have been riding the hype that has been created by the widely discussed use of medical marijuana for treating cancer and other deadly conditions. This has so far went well for their stock as this topic is generating a lot of interest for the company’s that have supposedly entered the sector and are doing research.
What concerned us most, however, is the fact that they are bragging about a report from Goldman Small Cap Research. We don’t hear that name for the first time as Goldmand Small Cap Research is a stock market research company that is focused on the small cap and micro cap sectors as suggested by its name.
The deal is that you can’t say many of their reports turn out to be correct. In order to avoid looking at more recent examples of companies they have allegedly researched and may still be going up and down, we have chosen Clean Power Concepts Inc (OTCMKTS:CPOW).
We chose them, because Goldman Small Cap Research made a report on them in the end of December, 2010. You might think we have gone too far back in time but if you look at the chart to the right you will start to see our point. And the point is that many of the companies that Goldman Small Cap Research makes reports on don’t fare well in the long run.
Given all that we would advise investors to do their due diligence and weigh out all the risks before making a decision to invest in NVLX.
