Generex Biotechnology Corp. (fka GNBTQ)

[WeeZuhl]

Complete nonsense.

The 1-1000 reverse is smart. Without the reverse, the company would have to raise money and offer 100% warrant coverage with it. Basically costing twice as much. After the reverse, the company should be able to raise money without all the warrants, so not diluting as much. Definitely a smart move, whether some like it or not. Also the reverse does not change your holding as a % of market cap, so it was a non event.

The RS is not a smart move that avoided warrants. The RS was the only option. Nobody was going to give them more money, even with warrants. So let's not be overly exuberant in our praise of their smart move. If your house is on fire, it's smart to get your ass up and run out, but it doesn't make you a genius.


They've already said they're going to dilute it out, 500 million shares "just as an example." Why would Joe pick 500 million shares for the new authorization "just as an example"? If the CEO throws out a number like that, you better listen. This company will not go forward with any semblance of a lean share count, so let's stop pretending like we should be making decisions as if the float is a few million when it will soon be a hundred times that. And if the RS was a non-event, why is the SP now $4 instead of $7 to reflect where it was on the day of the RS, or $10-17 to reflect where it traded in the weeks before RS?


I'm always glad to get good advice from a new friend, but don't piss down my leg and tell me it's raining.