Geron Corp (GERN)

[ross929]

Imagine we'll see some decent short covering today and over the next couple of days; it's the perfect time to exit. Hopefully we get a bump from info shared at the shareholder's meeting, but can't imagine that much of one.

The comment about having enough cash now to proceed with trials independent of JNJ is probably nothing more than a little bit of posturing with JNJ. Planting the seed that GERN isn't desperate for JNJ's buy in. In reality, JNJ abandoning the drug would be a massive blow to the stock. JNJ has more than enough money to invest in even high-risk development. For them to walk away after this much investment will only happen if they see a real flaw. The fact that GERN can survive a bad outcome for some number of months is nothing compared to the backdrop of JNJ puling out.

Having said that, I don't think JNJ will pull out, but any assertion that there is anything positive about that outcome is pretty ridiculous. I think the drug stays in trials with JNJ and while the stock will pop a little upon the continuation decision, anything meaningful for GERN and the stock is a year or two away. MHO.