Another inspiring press release, another promotional newsletter coupled with third party support – this is how the week started for Nuvilex Inc(PINK:NVLX). Yet, while vivid discussions form all over the Internet, the stock price keeps its position from last week. 
Monday, was a day of strong support for the company, while yesterday saw a slight decrease in the volume of traded shares, the stock price keeping its level and the session closing at $0.0699 per share. Now, speaking of support for the company, there are several parties involved and most of them focus on how the management is going the extra mile to bring stability and sustainable growth for Nuvilex. In particular, a recent acquisition of the company is often used as a sign for the above. The acquisition of Pancreatic Cancer Treatment Technology by Nuvilex. Indeed, a real turning point for the company; hence the wide coverage in the news as well:
Item 2.01 Completion of Acquisition or Disposition of Assets
Actually, again according to the SEC rules, only companies with 500 or more investors and $10 million or more in assets must file reports with the SEC. Nuvilex, according to the latest 10-Q, had $3.6k in cash and $36k in total current assets. Yet, the lack of name at hand is not a solid addition to the credibility of the positive announcements. Support, nonetheless, is gained from other sources on that matter.
Now, Nuvilex has a new board of directors, implementing a new strategy for growth and development. In the last few months the company has also enjoyed the support of promoters. Of course, this support is based on compensation. On one instance, the promoter receives 2 million restricted shares together with $10k per month for promotional activities, namely newsletters. One result – Nuvilex is referred to as “stock of the year“. [BANNER]
Another case, not less interesting by far, is the relationship between Nuvilex and Goldman Small Cap Research. In this case, $8k are paid by the company for Goldman to initiate research coverage. Naturally, a third party presenting full report about the company serves both the marketing purposes of Nuvilex and inspires higher confidence in interested investors and shareholders. What is more, opinions that run counter to the general positive notions in all press releases, paid stock promotions and reports cause additional, seemingly unrelated, parties to issue press releases in defence of Nuvilex and all other enterprises that support its development.
An example of the latter is the press release from Monday, focusing on the good points of Goldman Small Cap Research and the company in general. Two questions might form when browsing through the article in question. The first one is – what is the purpose for a seemingly unrelated party like United Press Network to come in support for Goldman Small Cap Research and Nuvilex? The second – why is it so hard to find any information about United Press Networks on the Internet? As the press release begins – in the financial news business, controversy is a good thing. Yet, controversy in names of supporting parties is not to go overlooked as well as “confusing similarity” could also come to mind. That aside, the press release is a good source of information, describing well the business of Gold Small Cap. The author defends this research company, which is not necessarily needed given that Goldman Small Cap Research is obviously a legitimate company with a straight-forward line of business.
Actually, the above article does make another good point, focusing on the underlying motives for distributing information, no matter whether it comes from the company itself, a promoter or forum participants. For example: an investor asks for an advice on a given public company. The investor could go and pay for the opinion of an independent advisor, but also seek the opinion of a promoter already compensated with millions of shares of the public company in question. Although both sources could provide him with advice based on legitimate, publicly available information, could it be possible that the two opinions differ a bit? Could it be possible that the difference comes from the underlying motives for forming an investment advice?
Nevertheless, it all comes down to one question – is Nuvilex a good investment? A question of controversy, but controversy could also prompt for higher caution, which does not mean that Nuvilex is not the company to invest in this year. After all, regardless of the methods and catalysts, the fact of the matter is that the value of this stock has more than doubled in the last few months and still maintains stability at levels way above those of last year. With the new management in place, the shift in focus and all the positive announcements recently, “stock of the year” or not, Nuvilex might indeed be going the extra mile. As the Monday press release mentions, financing has been secured and Nuvilex is looking forward to the initiation of the expanded Phase 2 clinical studies, successful results from which could ultimately lead to pivotal Phase 3 Trials and solidly place Nuvilex on the cusp of a major cancer therapy approval. Whether press releases with bold claims would become a reality at hand in the near future is a question yet to find its answer.
