GENEX PHARMACEUTICAL (GENX)

[WHITTENHALLJR]

Grabbed a 12 starter.... $GENX

[makinezmoney]

$GENX: Oh yesssssssssss........... and I like it


How low can this float get ?


Its lower than I can hope for :)




GO $GENX

[Renee]

GENX is severely delinquent in filing Financials and is at extreme risk of an SEC Suspension and subsequent stock registration revocation. The last 10Q was in 2008.

https://www.sec.gov/cgi-bin/browse-edgar?company=Genex+Pharmaceutical&owner=exclude&action=getcompany

GENX is on the list of delinquent filers:

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=123772332

1454 SEC Filers have been Suspended by the SEC for Financials delinquencies. The SEC Administrative Law Judge subsequently revoked (or will revoke) the Registrations of each delinquent SEC Filer.

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=123541685

[Estrella]

$GENX @ .0045!

[Estrella]

$GENX @ .0026!

[elbiatcho1]

Mr Fuzhi Song and Mr Deshun Song are father and son.

Maybe it should have been "father and Song".

[stanu78]

thanks swampboots.. i think i might hold till the end of the year and the move on (and take the tax loss). I think it's jard to trust management ever if they let the price drop to these levels (I wouldn't do that if I'm management). anyway I'll pass on the chance that thsi could go to $2 again if end of year they didn't even post an update. totally irresponsible. being public company they should be obligated to at least post a pr on how the company is doing

[swampboots]

I will sell when shares fall below cup of coffee.but will sell foe tax write off.but had a stock with same price go to $2 after light out, ya never know,lol.

[stanu78]

so you still holding? when are you going to sell?

[swampboots]

Think sung and my shares as well?

[stanu78]

does this company still exist? do they have a website? are they going to say anything again ever? the stock is pretty much worthless. another pump and dump scheme I guess.

[stanu78]

looks like this is a scam.. sad..

[stanu78]

thanks Digi.. keep us posted... and hope you had fun in Maui.. :)

[DigiTech]

I have nor heard from them since they asked me to pay for their PR. :)

I told them nicely that they were not from the same planet that we are.

Sorry I tried my best. You knows they could surface again.
I am in a good mood after one week on Maui. I tell you what, I will try one last time just for the heck of it.

[swampboots]

Yes it looks like no net and I will have to sel by year end unless heatbeat heard.

[stanu78]

good decision selling this stock. one year after, still nothing. I'm trying to remember why I bought this stock to begin with. surely learn a lot from this (ETLT and CXTI were my last 2 blunders, and now adding GENX to the blunder list :) )

[stanu78]

have you sold this stock..
I'm goign to sell by december if nothing came up from the company.. looks like they aren't filing their SEC filing no more..

[stanu78]

Any news...? It doesn't seem that they are trying to clarify their situation with shareholders..

[stanu78]

Digi, How long do you plan to wait?

I will wait till the end of the year if there is nothing going on (no filing) and the stock is still at $0, I peobbaly book the loss to offset some of the gain that I have this year

Does GENX have any website? are they still selling anyting?

Stan

[DigiTech]

I maybe waisting my time but I will give it one more go.

Have a nice weekend.

[stanu78]

why bother being listed if they don't care to compelte the filing and let shareholder know what is going on..

I'm curious, in their opinion, who really own the company (shareholder or management)

I think we should just quit wasting our time..

I rarely see any company come back from the grave .. especially after non filing like this...

lesson learned though..

[DigiTech]

Still working on it. I tried everything and I thing there is still a hope. The company is doing well, they just do not get the filling concept and the auditor concept.

I have one more try at it this month.

I'll let you know.

I am doing well in oil so it was not high on my ptiority list.

Cheers

[stanu78]

So what's the last word on this...

looks like this is just one of those typical china stock case (or pink sheet stock case)..

[swampboots]

this is last info I got that was comforting:

07/27/2007 09:47:07 Sold 400 GENX @ 0.47 182.99 ---
08/06/2007 14:34:54 Sold 500 GENX @ 0.465 227.49 ---
08/07/2007 13:11:55 Sold 800 GENX @ 0.465 366.99 ---
08/13/2007 12:12:27 Sold 3300 GENX @ 0.45 1,479.97 ---


Page:

[DigiTech]

Guy's I am working on it and have been for a long time.

They do intend to file. They had a big dispute with the auditors on fee. I know, pay them and get it over with. That is not in the Chinese dictionary.

They assured me that they want to do the right thing. That includes taking care of the loans.

I am planning a trip there before year end. I listed a few conditions to the visit so it takes time. This will be my 3rd trip.

[MikeDDKing]

I sold because they fell so far behind on filings that I doubt they will file again. If they don't file or otherwise update shareholders the stock will be virtually worthless.

[stanu78]

Mike,

What is the reason for you to sell GENX?

THanks,

Stan

[stanu78]

Digi, I've sent you some emails and waiting for your reply

TIA

Stan

[stanu78]

what is the result of the email to GENX?

how can they not care to shareholder. to me that means breaking the law. having a company public means they have fiduciary duty to maximize sareholder value including providing timely and accurate update/filing of their financial reports...

but to be fair, they are in Pink Sheet. so if I lost all my money on this one, it's my fault.

[stanu78]

Digi, any info on GENX? do you still in touch with them? Do you still own GENX shares?

I'm contemplating to sell and book the 90% loss on this one.
Seems like a fraud to me.. (though they never say they are commited to catch up with their filings)

Any thoughts? much appreciated.

[stanu78]

DigiTech, thanks for the PM.

As GENX shareholder, I really appreciate you helping GENX in any way you can. However, as a fellow investor, I would like to say that you should be careful with them (and surely not to invest any more dollar unless you are sure that tehy can be trusted and if they turned out to be a frau, you are ok to lose your money)

To me, their explanation doesn't really make sense. I file my own SEC filing. It is not that complicated. If they really get duped by one PR firm, they can try to hire another one (ask for referral or do a background check before signiing up/paying the PR firm). Worse case they should be able to file their own SEEC filing.

I'm not selling my GENX shares but will definitely not add anymore, until they can get audited properly, show profitable and growing or stable business and that there are interest from any institution/hedge fund that hopefully they will do some/proper due diligence.

Thanks again for the info DigiTech. Please keep me posted.

JMHO,

Stan
PS: my other suggestion and question for them:
1. What is their intention having listed in USA stock excange?
2. Why bother listing in the Pink Sheet? can they afford to take the company private. as I see no point to be listed in pink sheet, unless they want to sell a lot of stocks and dilute the company (just like NMKT for example)
3. Create a website (i.e. talk to shareholder)
4. Have conference call/annual shareholder meeting and take live questions.
5. and yes I like your suggestion about the external member for the board of director (and I lik the rest of your suggestions as well)
6. if they don't care with shareholder, is that mean they didn't care with themselves too (aren't they shareholder as well. what is the insider ownership.).

[DigiTech]

I am still alive!

Did not pay much attemtion to GENX or any other stocks for that matter in a long time (big mistake by the way)

I will send an email to GENX tonight and see if they will answer. A friend of mine visited them in November and they are still kicking. It is not a scam, they just do not care that much about stockholders.

BG

[stanu78]

Reposting Digi explanation of the visit:

If this stock turns out to be a scam stock too, it tells me that even visiting and seeing the operation directly means squat, which is sad.

they said they will file their SEC filing and move to .OB from .PK but I haven't seen that happening yet.

Anyone dare to add at these levels...?

================
Report on GENX's visit. (VMC repost)

On the 17th I flew from Korea to Tianjin. Tianjin is a very large city of 14 M located next to Beijing. They will have several events of the Olympics in that city. Many biotech companies are located in Tianjin.

At the airport I was met by 2 young ladies from the Golden Group. One of them was the assistant to Mr. Song the Chairman of GG and owner of 72% of GENX shares. The Golden Group is a conglomerate of several companies owned by Mr. Song and his son. Total workforce is 1500.

After lunch we went to visit the new GENX factory. I was met there by the GM, the Golden Group, the operation manager and the CFO of GENX. Unfortunately I do not have any photos since my camera was stolen the following week. The building is very large. I estimated around 300,000 sq ft with room to expand. It is located in an economic zone of Tianjin with many foreign companies. The shell of the building is completed and I counted around 50 to 75 workers on a Saturday!

I was a bit chocked at the size of the building. 50% of the building will be for GENX. The outside will be completed in 3 month with production starting in Q4. Full production will be possible in Q1 2008. When I asked what production level they expected I really taken aback. They expect to be able to increase production from 5 times 10 times the present production. They also expect that the production cost will be tremendously reduced due to the volume and new equipment. My immediate question was: “Can you sale the increased production?” the answer: “absolutely yes”

My internal calculator went to work right away:

$700K (Q run rate) X by 5 X by 4Q = $11.2 M revenue

$ 0.01 (Q profit per share) X by 5 X by 4 Q = $ 0.20 per share

I kept it as a straight line and did not include cost reduction just to be conservative.

Not bad for a 12 to 15 c stock !!!!!!!! You should try the numbers with 10 X production.

After that we went to the Golden Group factory. This is a very large place located close by. They house several of the Biotech companies of the Group as well as the Chemical division. The site is not exactly modern. It is and old Chemical factory China style. Meaning, forget about safety. The Biotech building looked more recent. The size of the land is around 100 to 200 acres.

The conference room was very very large (sorry no photo) On the walls they had photos of Mr. song with the Chairman of China Hu Jintao during his visit of the plan. Hu Jintao was seating at the same place I was (Too bad I did not have my VMC T shirt) . Mr Song is well connected.

The discussion covered many different subjects. I will give you the reader’s digest version of it because it was very painful at some points due to the translation.
Yes they now have a new WEB site. www.RBX-BMP.com. It is in Chinese only since they do not sale outside of China.

I asked if they will have an info page in English for stockholders. They told me that they are negotiating with a PR firm. I did mention that this could be done in a couple of hours!


They will be filling their 10 K on time and yes Q4 will be better than Q3.

Q3 was impacted by a big squeeze on pricing control by the Government. Several competitors did not survive. GENX did survive and increased their market share. The plant expansion will enable them to reduce the cost and maintain their profitability at the same time.

I could not get a very good answer about the tax liability due to late filling in 2004 and 2005. I think it is because the auditors are handling it and that the number is not significant.

Now for the infamous loans.

The loans have been made to several companies that are part of the group. There are no warrants attached as I previously believed. I made my point very strongly that this is not a good idea. They should have an arms length relationship between companies in the group. Their point was that it is the way business is done in China. The loans were used to finance the building expansion GENX is part of. Without the loans GENX would not have been able to expand production and marketing reach and be able to share resources with the other companies. It is true that GENX uses a lot of the Group’s resources.
I would not buy this in the US or Europe but this is China and I have seen the same thing done in several other companies.
However if GENX grows 5 or 10 X by 2008 who cares!

I asked again if they can really sale the forecasted output of the plant and the answer was very positive. The market is supplying only a small portion of the need. The problem has always been the cost. With lower cost the market will absorb the supply. This would mean that the revenue multiplier would be impacted but price sensitivity is only around 20 to 30%.

Their expansion to the dental market is also on track. 10 hospitals are now testing the product. This market could be larger than the bone injuries market and has a potential for Export. We discussed the export aspect. They would need to go the licensing way since they would no be able to resolve the regulatory issues themselves.


We had also a very long discussion about the stock market, investments in new venture etc. I told them some of the steps they have to take starting with moving out of .PK. and establishing practices that are in line with western expectations of public companies behavior. I urged them to do some PR about the company status and I will help them do that. I have a lot of work to do there but I will get there. BTW thanks to everybody that sent some private and public posts about .OB procedures.


Overall a good visit. If they execute the plan this could be an easy 5 or 10 baggers but this is China so who knows!
By keeping on top of them at least we have a better chance.

They invited me to come back in a couple of month. I guess they did not mind a shareholder asking questions.

BG
==================

[MikeDDKing]

Unfortunately I still own some shares but it is a tiny position.

[stanu78]

how do we know that they are still in business and that they are producing profit (and not fraud like etlt of cxti)

Digi, when you visited , what do you see?
Digi and Mike, do you still own GENX?
I'm still holding but I'm down 90%+ now on GENX..

TIA

Stan

[MikeDDKing]

I'm sorry for the slow response. I was on vacation and am catching up.

GENX management unfortunately doesn't seem to put enough priority on timely SEC filings. They were almost caught up early in the year after being behind for some time. Then, they fell off the wagon and got behind again.

I know that DigiTech has visited this company so I am confident that they exist. He knows more about what is going on so hopefully, he will pop in and reply but I think he is reading iHub very infrequently.

My opinion is that GENX just doesn't understand how to deal with US investors. There are hardly any shares traded so they aren't a scam company that is trying to pump and dump their shares. Also, the fact that they don't issue press releases shows that they aren't pumping the company.

The big question is how is their business doing. Unfortunately, our most recent snapshot is the annual filing for 2007 (10-K) so we haven't had an update in quite some time. 2008 was supposed to be the year of excellent growth. Since we haven't had an update I have no way of knowing whether that came to fruition or not.

Mike

[stanu78]

DigiTech, ANy more info on GENX?

TIA

Stan

[stanu78]

Mike, Do you have any other info on this company (or their existence and their seriousness about the business). TIA.

Rawnoc, thanks for the reply.

Stan

[Rawnoc]

Dunno.

[stanu78]

is this company still around? trying to figure out what I want to do with my shares as it gets closer to the end of the year (one of the candidate for tax loss selling and then move on)

I wonder if this company is for real and serious about the business. I don't know why I bought this stock though I know it is late in their filing (.PK status).

I think if they don't post anything by March 31st, 2009 or APril 15th, 2009, I'm almost certain that this company is just playing games with us. JMHO though.

Any info that you guys have about this company will be appreciated.

Stan

[Rawnoc]

Do you know? Are they behind on their filings? Is the financial information dated?

[MikeDDKing]

I don't know. They are behind on their filings so the financial information is dated.

Mike

[swampboots]

is this good?

11/05/2008 09:37:58 Bought 6500 GENX @ 0.031 -206.50

[MikeDDKing]

I think that trade was intended for GENZ which last traded at $78.8.

Mike

[MikeDDKing]

Last trade at $79. ROFL. Me thinks they need to reverse that trade.

Mike

[MikeDDKing]

We should see the 10-K any day now. They filed an NT 10-K back on 4/1/08.

Mike

[DigiTech]

Mike,

I came to the same comclusion about the increase in selling expenses but of course I will try to verify that assumption.

I think we can expect a good Q4 but the 2008 production ramp up make take a bit more time as previously discussed.

Trying hard to make it there but my dance card is a bit full.

BG

[MikeDDKing]

Here is what the 10-Q states on selling expenses:

"Selling expenses increased by $304,975 to $440,767 for the three month period ended September 30, 2007, from $135,792 for the three month period ended September 30, 2006. The increase in selling expenses is attributable to various expenses associated with marketing the Company’s products and, in particular, increasing acceptance of the Company’s products within the medical community in China. The increase in selling expenses included expenses associated with conducting or sponsoring training programs and seminars for physicians, participating in product trade shows, conducting or sponsoring medical case studies, sponsoring academic research and technical evaluations of the Company’s products, and providing additional training for Company employees. Payment for these expenditures was in large part made through a consulting firm engaged by the Company during the first nine months of 2007 to assist with the management and coordination of these activities. "

It sounds to me like they are ramping up marketing in anticipation of the huge increase in capacity. That sounds like a smart move.

Mike

[riskanalyst]

3Q posted!

38.5% YOY Rev increase.

Selling expenses up dramatically (will have to see what this is about)

Only .0033 Net Inc. for the Q.

[DigiTech]

Next Q

We should see the next Q (Q3) this month and year end in March.

2nd part of the year should be good.

2008 will see significant growth but getting the new plant in full production may take a bit longer due to approval by the government. With all the problems making the news, China is getting a lot more carefull about approvals.

BG