If It's Good Enough For Robert Trump
I got a call at 10:30 last night from a close friend alerting me to a negative article that had just been published by some unknown at Seeking Alpha. This nobody is bashing Nuvilex (NVLX).
Seeking Alpha appears to have become the favored forum for microcap bashing. One can never prove these things, but without a doubt a fairly pristine forum for information on stocks has become a transparent and likely paid under the table information pipe for short sellers to discredit companies with potential.
When I read an article like this, the first thing that enters my mind is short sellers are short, and desperate.
I'm going to make this short and sweet. The first thing you should do is go to the following link, and read this clown's review. This guy has all of 28 followers.
Click Here to be magically transported to a misleading and incomplete analysis of this company.
Mr. Nicholas Kitonyi is a self described value investor. I'm pretty sure he hasn't been publishing a microcap newsletter since 1998 as I have. I also can assure you NVLX is not a stock for a value investor.
He provides a long winded attack on NVLX's balance sheet, and makes the claim the company's lack of long term debt is a negative. He covers the balance sheet, the income statement, and the cash flow.
Everyone who follows this story knows this company cannot be evaluated by balance sheet or income statement. The NVLX story is all about getting their encapsulation technology into a Phase III clinical trial.
He makes no mention of the fact the company just raised $1.5 million to make the final payment to own the technology from SG Austria.
He makes no mention of the Phase I/II trial that was conducted on 14 patients with inoperable pancreatic cancer at the Rostock Medical University in Germany. He makes no mention the study conclusively doubled the effectiveness of Gemzar- the chemotherapy agent used to treat Pancreatic Cancer.
I have the power points from SG Austria in my due diligence file, and I've read them. I wasn't there, but it sure seems real to me.
Here's one more little item to chew on. I would ask Mr. Kitonyi the following- if the company is so worthless, why is Robert Trump- younger brother of the famous Donald- still holding the 5.5 million shares he purchased in 2009? He made an investment directly in the company, and I am informed he still holds the shares.
Want proof? Click here to read the 8K filing on the SEC Web Site.
My advice? If the short sellers try to crush the stock when the market opens, there could be a brief but advantageous opportunity to pounce on some very cheap shares.
I believe any pullback will be short lived. Nuvilex (NVLX) is certainly a high risk stock to own, but at $.16 the whole value of the company is about $72 million, which is chump change in biotech land.
I am also informed Seeking Alpha will not approve and positive coverage on stocks under $1, yet they seem very comfortable approving the bashers.
Shame on you Seeking Alpha. You're bastardizing a formerly pristine forum. Someone's getting paid, and it's not being disclosed. What else could it be?
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