Yesterday evening, promoters have again alerted CVSL stock to their newsletter subscribers, trying to move the stock price and volume up today and being compensated with a total of $20,000 by a third party. The stock closed at $0.01 for a share on Friday without a change in the closing price and with a volume of about 380,000 traded shares. Even that trading activity is extraordinary high for the stock though, thus with some other indicators looking bullish, CVSL might be set to explode today.
Apart from the technical side, the fundamentals look practically missing according to the company’s latest quarter report. CVSL acquired the U.S patent for to a maneuverable coiled guidewire back in 2007, and since then the company was mainly engaged in the raising of capital. Though, the capital raised did not lead to finding any potential licensing partners or distributors for its technology, moreover the company has not even manufactured a prototype to be presented to any potential partners.
As of last September the value of the patent has been completely written off as the expected future cash flows of the technology were less that the $5,000 paid to acquire it, and the company had $0 cash to start any operations. CVSL even planed in July 2009 to abandon completely the development of the coiled guidewire, unfortunately the plans to market cooling tower water treatment systems failed within less than a couple of months.
Thus, CVSL is still far away from making a revenue or a profit from its planned-for-development medical device, as it not only has to be developed first, but will also need to undergo a number of clinical trials and finally an FDA approval. Yet, it does not mean that the promoters cannot get be successful in moving the stock price today for a large a quick profit.
