Boston, MA, 05/02/2013 – Nuvilex, Inc. (OTCQB:NVLX) has been on a magnificent slow and gradual upward movement ever since MyBestStockAlerts.com(MBSA) initiated coverage on it. As per our records, MBSA initiated coverage on NVLX on April 18th, 2013 when it was trading at mere 0.069. Today NVLX reached as high of 0.110. Since then we have received several promotional emails touting about NVLX. So, whats driving NVLX pps higher ? Is it mere touting and promotional services and market sentiments or are there any concrete reasons for this surge ?
According to the companies website, Nuvilex, Inc. (OTCQB:NVLX) has been a provider of all-natural products for many years, has expanded its company to increase its natural product based footprint through medical marijuana studies and is becoming an international biotechnology provider of live, therapeutically valuable, encapsulated cells and services for treatments, research and medicine. The Company’s offerings will ultimately include cancer, diabetes and other clinical treatments using the company’s natural product knowledge, product base, cell and gene therapy expertise, and live-cell encapsulation technology in addition to other new products currently under development. The key word to notice here is “Medical Marijuana Studies”.
According to the white house website, recently, there have been increasing efforts to legalize marijuana. The Obama Administration has consistently reiterated its firm opposition to any form of drug legalization. Together with Federal partners and state and local officials, the Office of National Drug Control Policy is working to reduce the use of marijuana and other illicit drugs through development of strategies that fully integrate the principles of prevention, treatment, recovery, and effective supply reduction efforts. Proposals such as legalization that would promote marijuana use are inconsistent with this public health and safety approach.
Apparently it seems that simply one of the hottest industries on Wall Street today is the medical marijuana industry with experts predicting exponential growth in the mid-term. It’s been the topic of television specials on CNBC and CBS’s 60 Minutes as well as articles in leading financial publications like MarketWatch, Reuters, Bloomberg and more. When analysts are touting the potential, should we be listening ?
The medical cannabis industry was valued at $1.3 billion in 2011, but with legalization spreading through states at a blistering pace…What they see in growth potential is staggering.
Bruce Perlowin, chief executive at Hemp, Inc. (HEMP), another medical marijuana company that has recorded strong gains recently, calls the paradigm shift towards legalizing marijuana as “unstoppable,” and he’s probably spot-on judging by legislative actions in the past year. Dan Rush, head of the United Food and Commercial Workers Union, recently told Reuters that he believes the medical cannabis business could rival the size of the U.S crop or the alcohol industry.
In November, Colorado and Washington made the pioneering move to legalize marijuana for recreational purposes, a move that is likely to be progressively followed by more states that see jobs creation and the massive revenue that can be generated to feed starving budgets. Seventeen states in the U.S. have already legalized cannabis for medicinal purposes and five more have legislation pending that seem likely to pass, judging from surveys and state officials’ commentary.
Nevertheless, its important to conduct due diligence on companies like NVLX and other marijuana-based biotech companies and not make a decision based on market sentiments or hypes.
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