Boston, MA, 05/04/2013 – Nuvilex Inc (OTCMKTS:NVLX) is experiencing a significant increase in trading activity than its previous sessions. Yesterday, at the open an interesting report was released on NVLX by PremiereStockAlerts.com and BUYINS.NET group, updating investors on the number of shares being shorted on NVLX. Apparently, if this is true, this is important because it gives a clear idea as to why the share price is where it is. Now theoretically, squeezing out the short position would mean NVLX could reach new levels and keep inching higher.
You can view the original and updated reports by clicking on the below links:
Click for original Report: http://www.buyins.com/reports/nvlx10-27-12.pdf
Click for updated SqueezeTrigger: http://www.buyins.com/images2/nvlxstr5-2-13.jpg
Click for updated Friction Factor: http://www.buyins.com/images2/nvlxff5-2-13.jpg
What is a short squeeze you ask?
Defined by Investopedia, a short squeeze is a situation in which a lack of supply and an excess demand for a traded stock forces the price upward. During a short squeeze, individuals holding short positions are typically forced to purchase shares in situations where the price increases rapidly, in order to exit their short position. Short squeezes occur more often in smaller-cap stocks with small floats.
Further explained: If a stock starts to rise rapidly, the trend may continue to escalate because the short sellers will likely want out. For example, if a stock rises 15% in one day, those with short positions may be forced to liquidate and cover their position by purchasing the stock. If enough short sellers buy back the stock, the price is pushed even higher.
According to the newsletter issued by PremiereStockAlerts.com, “short squeeze have the potential to make a stock go higher. One of the most recent successful short squeezes came last week on LOTE.QB where the stock ran from $2.65 to $11.65 in just three trading days! Not saying this is what is about to take place with NVLX, but the potential for a big run is definitely there “