Submitted by David Gould as part of our contributors program.
Micro-cap investing can often be very speculative–leaving many investors feeling like they just left the casino. But it doesn’t have to be that way. There are safe micro-cap stocks out there with high-growth potential and minimized downside. Downside has been minimized, because of the irrational discounting mentioned earlier (i.e. investors would rather not go with the risk). Thus, buying a basket of, say, penny stocks would do two things: (1) enable you to profit off of discount rates falling and (2) hedge against the chance that any one of those companies collapses within the portfolios. An even better strategy would be to invest directly in under-recognized companies.
The one gem out there that few investors know about but is likely to provide substantial gains is… Nuvilex (PINK:NVLX). This biotech company has a pancreatic cancer treatment that, in its Phase II clinical trials, doubled the median survival time compared to Lilly’s (LLY) Gemzar, the standard of care as a single agent for advanced pancreatic cancer. In addition, compared to Gemzar, Nuvilex’s pancreatic cancer treatment gave a doubling in the percentage of 1-year survivors. For decades, oncologists have been trying to incrementally improve survival times for many forms of cancer, let alone for pancreatic cancer, one of the deadliest forms of the disease. That a company could come along and introduce a treatment that doubles survival time without soaring in value is unheard of. Nuvilex represents one of the rarest opportunities out there.
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Common sense dictates that no company with such a powerful late-stage cancer treatment could maintain a market cap under $100 million for long. Nuvilex is only worth around $30M. This is simply unheard of.
Fortunately, investors are just starting to catch on. The stock price has more than doubled (119%+) over the last 3 months. A Forbes researcher has expressed his bullishness, and the company is now entering the high-profile “Green Rush” that is catching the interests of many investors. Cannabis Science (PINK:CBIS) and Medical Marijuana (PINK:MJNA) have both delivered breakthrough returns. The former is up over 22% while the latter is up over 333%. Marijuana is attracting momentum with investors that points to the growing chorus of “legalize pot” voters for optimism. With over 1,500 dispensaries, 18 states (plus Washington DC) on board, and national legalization efforts, the pot industry is set to go higher and higher.
What exactly is Nuvilex planning on doing in the marijuana space? Ultimately, it is looking to do something very similar to what it did for pancreatic cancer. It is looking to use cannabinoids (the “active” components in marijuana) as the basis on which to build treatments for glioblastoma multiforme, an aggressive brain cancer, as well as for pancreatic cancer.
Cannabinoids, unlike many other commonly-used cancer drugs, appear to be able to cross the “blood-brain” barrier and therefore are good candidates for treating brain cancers. Research has demonstrated that cannabinoids, like “THC” and cannabidiol (CBD), can mitigate tumor growth through an immunological response in addition to other mechanisms, and as a result, a plethora of reports have appeared in prominent scientific publications that testify to the activity of cannabinoids for the treatment of a variety of cancers. Accordingly, the science behind what Nuvilex plans to do is well supported by peer reviewed scientific literature.
Furthermore, Nuvilex’s cell encapsulation technology is revolutionary. The technology has already been used in their pancreatic cancer treatment. If it can be combined with cannabinoids, it may not only be able to improve efficacy of cancer treatments (like the cell encapsulation-based product has done independently) but also improve the quality of life of patients undergoing treatment for some of the most lethal of all cancers. Marijuana is already being prescribed mostly for pain treatment, and has been shown to ameliorate the cachexia, or “wasting’ syndrome associated with many advanced cancers. Therefore, medical marijuana very likely has diverse properties when used in cancer treatments. This provides for significant opportunity with minimal downside.
Finally, I would like to conclude by highlighting how the firm’s COO, Dr. Gerry Crabtree, PhD comes equipped with experience in Big Pharma. He worked for Bristol Myers (BMY) as Project Manager in the development of Taxol, a breakthrough product. He has published north of 80 peer-reviewed articles and coordinated the development of multiple drug candidates. He knows a strong pipeline when he sees it. It is time for the market to start seeing the same thing.
DISCLAIMER: The distributor of this research report, Gould Partners, is not a licensed investment adviser or broker dealer. Investors are cautioned to perform their own due diligence as information contained within this report has been derived by public sources and cannot be guaranteed by us to be fully accurate. We are a consultant to a third-party, representing Nuvilex and have received $10,000 in cash for independent research. Always discuss investments with a licensed professional before making any financial decision. Statements made herein are often “forward-looking statements” as stipulated under Section 27A of the Securities Act of 1933, Section 21E of the Securities Act of 1934, and the Private Securities Litigation Reform Act of 1995. Since these statements are uncertain, actual results may be materially different from those expected.