I really have no idea who was responsible for trading volume which exceeded the total outstanding shares by many times, but clearly calling it a Pump and Dump was appropriate. Regardless of who did it, it did help those of us who are investors looking for long term gains as it move the stock from trading in the $3 to $4 range to $5 to $7 range, a nice gain for the week.
Now that we're trading at $6+, the question is, where do we go from here. It's my belief that with any positive news double digit's are possible, even probable, especially if GNVC doesn't dilute, at least not yet.
Don't get me wrong, GNVC will eventually dilute, they'll have to. With under 3 million shares outstanding it's clear the number will increase over time, but it's my hope that it won't increase until the company's in double digits and $10 million or more will be seen from the sale of a million shares.
If I were a potential partner of GNVC's, say for their RSV vaccine, I might be willing to pay some tens of millions or more up front, but I'd also want to acquire a reasonable percentage of the company simultaneously, most if not all the shares would be new shares. Just for chatting purposes, let's say a potential partner offered $25 million for the RSV vaccine partnership, that's roughly $10 a share. If I were behind such an offer, I'd want say 30% ownership of the company based on the price before the partnership announcement was made, as of now that's under a million shares. If the share price at the time was $10, my total cost would be $35 million, but on announcing the partnership, I'd expect the stock price to go up to the $15 to $20 range, so much of the equity in my offer would be immediately returned by the appreciation in the stock. I'm not suggesting this will happen, in fact if someone really liked GNVC, I don't know how high an offer would be needed to acquire the company, but I believe it would be sufficient to put all of us ahead, a substantial multiple of where we're trading today.
Gary
