Genta, Inc (fka GNTAQ)

[fmrick]

To understand why this still trades you have got to look at how this company was set up in the first place.

The company was financed by people who loaned the company money and the loans were paid off in stock. It is a good deal if you can get in on it.

Now consider you have the rights to convert 1000 shares of stock. The company releases a press release and the stock shoots up. But you don't have your shares yet. You get interest on your money until you convert, so you want to wait as long as possible before converting.

So what you do is sell short. Then later you convert your 1000 shares and deliver them to the broker who handled your short sale. That covers your short. That transaction must be shown on the books of the broker. And that is most of the volume you see every day.

The other part is stupid people who think it is actually trading and so they try to jump in.

The deal for the finance people is the greatest in the world. The conversions were great when they were priced at 0.001 and the stock was trading at 0.01 or better. If you use the short strategy I outlined above you have NO RISK. You sell short, get your money, and later convert and cover. And each time the company made a press release the price popped and they made even more. They have no risk because they can sell short and cover later. All the while the outstanding balance they have on the loan is earning them interest.