NVLX Zooms Higher on News

Investment and Company Research
Opportunity Research
TRADING ALERT

Toward the end of trading yesterday, NVLX announced that it is entering the lucrative medical marijuana space. Needless to say, the stock roared 70% higher on the news and at one point was up 79%.

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NUVILEX, INC.
NVLX Zooms Higher on News It Has Entered Medical Marijuana Space; Stock Could Continue to Be Under Accumulation

Rob Goldman
rob@goldmanresearch.com

Aaron Schweitzer
aaron@goldmanresearch.com
February 12, 2013
 
NUVILEX, INC. (OTC:QB – NVLX - $0.0598)
Price Target: $0.50 Rating: Speculative Buy
 
COMPANY SNAPSHOT INVESTMENT HIGHLIGHTS

Nuvilex, Inc. 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.

 
KEY STATISTICS
 
Price as of 2/11/13 $0.0598  
52 Wk High - Low $0.089 – 0.019  
Est. Shares Outstanding 446.0M  
Market Capitalization $26.6M  
3 Mo Avg Vol 259,000  
Exchange: OTC:QB  
 
COMPANY INFORMATION

Meadows Corporate Park I
12510 Prosperity Blvd, Suite #310
Silver Spring MD 20904
(240) Own-NVLX or (240) 696-6859

www.nuvilex.com
investors@nuvilex.com
IR: Marlin Molinaro, Marmel Communications
(702) 434-8692 mmolinarofc@aol.com

Toward the end of trading yesterday, NVLX announced that it is entering the lucrative medical marijuana space. Needless to say, the stock roared 70% higher on the news and at one point was up 79%.

Specifically, NVLX announced that it has established new subsidiary, Medical Marijuana Sciences, Inc., to study the medical applications of marijuana (Cannabis sativa) and develop treatments for serious human diseases.

The Company plans to publish research demonstrating the therapeutic benefits of cannabinoids on a variety of indications.  By leveraging its existing strengths and experience, the Company will be positioned at the forefront of the medical cannabis industry. The new subsidiary is a means to further employ our core technologies to capitalize on the rapidly growing medical cannabis industry and provide new products for unmet medical needs.

We expect management to provide greater clarity on the type of projects and products in which it will be involved later this week. Clearly, this news should serve as a jump-start to the stock price which has languished for some time.  With additional development news on its core products expected soon as well, and details on the new business, we may be prompted to execute a re-valuation of the stock. We view NVLX as an undervalued and misunderstood company with great technology, a delivery system to treat a broad array of diseases, and a potential prime time player in medical marijuana. We rate NVLX Speculative Buy and we would not be surprised to see the stock break through its 52-week high of $0.089 in the near term.


Analyst: Robert Goldman

Rob Goldman has over 20 years of investment and company research experience as a senior research analyst and as a portfolio and mutual fund manager. During his tenure as a sell side analyst, Rob was a senior member of Piper Jaffray's Technology and Communications teams. Prior to joining Piper, Rob led Josephthal & Co.'s Washington-based Emerging Growth Research Group. In addition to his sell-side experience Rob served as Chief Investment Officer of a boutique investment management firm and Blue and White Investment Management, where he managed Small Cap Growth portfolios and The Blue and White Fund.

Analyst Certification

I, Robert Goldman, hereby certify that the view expressed in this research report accurately reflect my personal views about the subject securities and issuers. I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the recommendations or views expressed in this research report.

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