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Now that was a well thought out post...
...only problem is, when the post was constructed, the company hadn't made its dire financial situation known.
Different ballgame now.
Well, here's the problem(s).
Latest 10-k (amended) shows:
April 1st / 09 : 1,014,141,242 Common stock outstanding
They are diluting. The last in February, the outstanding shares were something like 950 million. That's dilution and it brings down the value of the shares you hold. They will continue to dilute, you can bank on it.
The second part from the most recent 8-k is much more concerning:
Recent 8-K filed pretty much confirms a R/S as a stipulation, that is unless they don't want the money.
"The 2009 Notes include certain events of default, including a requirement that the Company effect a reverse stock split of the Company’s Common Stock within 105 days of the Initial Closing. There are currently not enough shares of common stock authorized under the Company’s certificate of incorporation to cover the shares underlying the 2009 Notes."
So while it's great that they finished accrual, they're going to continue to dilute and MUST reverse split in order to receive money to get them past June 2009. You can read in the latest pr that they need 6 more months in order to get results for the Agenda Trial, yet they only have enough financing to get them through June, 2009.
This will REQUIRE a reverse split.
What is a dead cat bounce?
It appears this might be what we saw on Friday after the stock plummeted over 60%. The image below fits the bill with respect to the way the GNTA chart is set up.
A dead cat bounce is a figurative term used by traders in the finance industry to describe a pattern wherein a spectacular decline in the price of a stock is immediately followed by a moderate and temporary rise before resuming its downward movement, with the connotation that the rise was not an indication of improving circumstances in the fundamentals of the stock. It is derived from the notion that "even a dead cat will bounce if it falls from a great height".
The phrase has been used on the trading floors for many years. However the earliest recorded use of the phrase dates from 1985 when the Singaporean and Malaysian stock markets bounced back after a hard fall during the recession of that year. Journalist Christopher Sherwell of the Financial Times reported a stock broker as saying the market rise was a "dead cat bounce". It has also been used in reference to political polling numbers.[1]
The reasons for such a bounce can be technical, as investors may have standing orders to buy shorted stocks if they fall below a certain level or to cover certain option positions. Once those limits are reached, the buy orders are activated and the sudden rise in demand causes the price of the stock to rise as well. The bounce may also be the result of speculation. Since bounces often occur, traders buy into what they hope is the bottom of the market, expecting a bounce and thereby reaping a quick profit. Thus, the very act of anticipating a bounce can create and magnify it.
Does anyone notice any striking similarities...
...between these two charts? Textbook.
A dead cat bounce is a figurative term used by traders in the finance industry to describe a pattern wherein a spectacular decline in the price of a stock is immediately followed by a moderate and temporary rise before resuming its downward movement, with the connotation that the rise was not an indication of improving circumstances in the fundamentals of the stock. It is derived from the notion that "even a dead cat will bounce if it falls from a great height".
The phrase has been used on the trading floors for many years. However the earliest recorded use of the phrase dates from 1985 when the Singaporean and Malaysian stock markets bounced back after a hard fall during the recession of that year. Journalist Christopher Sherwell of the Financial Times reported a stock broker as saying the market rise was a "dead cat bounce". It has also been used in reference to political polling numbers.[1]
The reasons for such a bounce can be technical, as investors may have standing orders to buy shorted stocks if they fall below a certain level or to cover certain option positions. Once those limits are reached, the buy orders are activated and the sudden rise in demand causes the price of the stock to rise as well. The bounce may also be the result of speculation. Since bounces often occur, traders buy into what they hope is the bottom of the market, expecting a bounce and thereby reaping a quick profit. Thus, the very act of anticipating a bounce can create and magnify it.
Look, ryan128...
...I've been here for a long time, alright. I've done hundreds of hours of research on this company. "Up to 12MM" doesn't mean 12 million. It means up to that amount.
Genta wanted 23MM, they got 12. There are significant costs that go along with clinical trials and the capture of analytical results. That takes time and money. 12MM ain't gonna cut it. The FDA only approves drugs if the company has money to manufacture...Genta doesn't have that.
You need to do more research. There's nothing you can tell me about this company that I don't already know.
But I'm not interested in other stocks. I'm interested in this one in particular, which is bad for you, it appears. What the hell is "obb land"? Listen, son, I'm not at all new to the pinksheets. I don't hold any OTCBB stocks though (I think this is what you were looking for with your obb land thought), I admit that. But I'm not new to the arena, I can assure you of that.
I'm sorry if you don't like to read truths about dilution, reverse split requests from the company, etc. Those things are reality, not all this rah-rah "to the mooooooon!!" BS you get from the pumpers here.
I am not concerned with you ignoring my posts. I'm concerned with new investors drinking the Kool-Aid from pumpers of a company that's about to reverse split and dilute their shareholders down to zero. Sorry man, that's just the way it is. I've probably done over 1,000 times the research you've done on this company.
The only thing this stock is good for is shrewd day traders feasting off of newbies who don't know what they're getting into. Friday, case and point.
How many newbies got taken to the cleaners on Friday? Raise your hand.
I enjoy posting here. It's fun to keep the pumpers and liars in check. My other stocks can't be affected by pumpers so much, so I just digest information on my own and let the street do the same.
This is a different story. This can be pumped by liars, I enjoy proving liars wrong.
Na, I like being here...
...to try to offer some truth to newbies who are otherwise going to get taken for their entire investment by pumpers. It's obvious why you want me to leave, isn't it?
Think of me as a good Samaritan. I'll be here forever.
No way. Anyone looking to invest here...
...or who is holding shares here aught to be scared out of their mind with what happened on Friday.
This stock will never climb to those levels again on speculation...why? Because everyone will bail before it gets there. This type of fall is hard to forget and you can pretty much forget about getting that high ever again without some sort of FDA decision or partnership.
Not only that, the company is going to reverse split and dilute like hell.
I'm never touching this stock again.
Oh God, here we go again.
If there is a buy, there has to be a sell...
...unless there is dilution to introduce more shares.
Oh yeah? What gives you that inclination?
Who has seen a bigger fall on this kind of volume?
This was the mother of all pump and dumps. I mean this is crazy!
LOL, the people buying these shares are....
NEW BAGHOLDERS.
Dilution hasn't even begun...
...when it does, this price will look unattainable.
This is what happens when newbies follow...
...pumpers on a message board. Contrary to all the evidence, they continue to buy and deny. Pumpers use crazy words and 100 exclamation points and type in all caps...for some reason, newbies can't restrain themselves.
The daytraders catch on, they're the smart ones and once were the newbies. Then they were pumpers. Then they became those who let others do the pumping while they rake in the benefits at the expense of the newbies.
I'm truly sorry to those who lost everything here, accept for one person. I hope he lost every dollar he had here as he cost others thousands of dollars.
Next time, newbies, you need to use better judgment in who you choose to follow. Follow only yourself and learn to see through those who will mislead you.
Hell no I'm not buying
Yes, they secured dilutive financing and plan a reverse stock split...those things are still true today. Great.
Reverse Split as well...
This stock is done...
...the pump is over. On to the next one, guys. Dilution is next.
This is serious guys...wow
Last one out is a rotten egg
People may be wise to take some profit today.
Good luck today, guys
I might retract my post that I'm going to get a big position here...I want to see what the reaction is. It's far less than they were hoping for (23MM). I'm going to wait to see how this plays out.
I think the "Up to 12MM in financing" is important.
Yeah, they got some financing, but I don't think it's what they wanted by any stretch.
It's less than they wanted, by far...
...but it should allow them to finish the Agenda Trial. I'm not exactly sure how much money it costs to complete analytical results on the trial, but they'll try to address that bridge when it's time to cross.
The company now has millions upon millions in debt. They've got everything riding on the Agenda Trial.
This is good news...but not WOW news...
...12 million will keep Genta going for another 6 months. The good news is this should help them completely finish the Agenda clinical trial.
Congratulations guys!
I'll be looking for a position tomorrow...a big one.
Now THAT is a good April fools joke, Hoops
LOL
Smitter, this is a silly blog by someone who trades on the OTCBB and it's hardly news of any sort. It's just explaining the price movement in a glorified blog site.
Give me a link that has the same story from a legit site. You could write the same thing on your blog if you had one.
I'll make a deal with you...
...if this company announces that it has secured financing to get it through the end of 2010 at a burn rate of 2MM/mth, I'll meet you there.
It's going to be that long before we hear anything from the FDA on any NDA submitted by Genta. They'll need millions of dollars to get there, roughly 42 million dollars.
There hasn't been any one million dollar buys, much less 2.3 million dollar buys. There may have been that many shares go through at the same time (batched) that made it look like one person was investing 39,000 dollars (I think this is what you meant), but it likely wasn't one person. Lots of times, orders are batched and show on your L2...other times, not...but mostly that's how it works. Then you see partials come through, like 500 share orders from remainders.
Also, when I sold, I had much more than 200k shares...that was just my initial buy-in. However, times were different financially.
People are free to hope and dream here and buy this security, which clearly they're doing. It's my OPINION, however, that they're buying to ride the run up (momentum players) or they're newbies who don't understand what they're getting into.
I wish you guys the best of luck, I really do...but this won't last without news from the company that they aren't completely out of money and aren't going to dilute their shareholders.
Clearly, however, I've been wrong before.
Best of luck tomorrow.
No way, as far as I'm concerned...
...this company is completely broke and is asking for a reverse split. This movement is completely uncalled for and speaks volumes about momentum players and newbies who haven't done proper due diligence.
If it were insider knowledge about some sort of partnership, the volume here would be 4 times this amount and the pps would be much much higher. This is simply people riding the wave with no basis.
The company needs to release financial updates to sustain (and accelerate) this play. It won't run forever on no news and no money.
I am here to eat crow...
...Genta finished in the green when I said it would finish red. I must admit, this pump is stronger than I had originally suspected. I'm continually amazed that people are willing to buy into this company when it has no money.
Nevertheless, I was wrong about today's direction and I've been wrong about its direction since it was sub-penny.
Congratulations to everyone who made nice money today in GNTA! Hopefully we hear something soon on their financials.
Yes, which has nothing to do with the OTCBB
Please show me in that link where it states Genta has 23 million dollars. You're drinking the kool-aid.
WackyJack...
...I'm just telling you what the company said on March 9th. They said they'd run out of money by the end of the 1st Quarter and they've not released any additional news on their financial status. I think that tells us two things. They have no financing in place and they will dilute to stay in operation. There is no other option that isn't a pipedream.
Our business will suffer if we fail to obtain timely funding.
Our operations to date have required significant cash expenditures. Prior to completion of this offering, we have less than two months operating cash remaining. Our future capital requirements will depend on the results of our research and development activities, preclinical studies and clinical trials, competitive and technological advances, and regulatory activities of the FDA and other regulatory authorities. In order to commercialize our products, seek new product candidates and continue our research and development programs, we will need to raise significant additional funds irrespective of market conditions.
If we are unable to raise additional funds, we will need to do one or more of the following:
• delay, scale back or eliminate some or all of our research and product development programs;
• license third parties to develop and commercialize products or technologies that we would otherwise seek to develop and commercialize ourselves;
• attempt to sell our company;
• cease operations; or
• declare bankruptcy
Presently, with no further financing, we will run out of funds in the first quarter of 2009. We currently do not have any additional financing in place.
Now what is so hard to understand about the last financial update from the company?
New investors:
Individuals pushing this stock will be nowhere to be found when this move on no news (even in the face of a reverse split) comes to a screeching hault...and it will come to that very soon without a financial update from this company.
My guess is they are delaying any PR on financing because they're going to dilute the shareholders brains out. If they'd secured any other kind of financing, they would've released it loud and clear for the investment community.
Beware.
Yes it is...it's those who post on feelings rather than facts, use words and all caps with one hundred exclamation points, and threaten to remove any posts that bring to light this company's financial situation, which is the foundation of this company's existence.
You're right. It's clearly obvious who the manipulator(s) are.