GNBT fires back "CEOcast report today"
by: arosebyany 03/26/06 03:58 pm
Msg: 159853 of 159987
Volume Alert: Shares of Generex Biotechnology Corporation (NASDAQ: GNBT), a leader in the area of buccal drug delivery, reached a new 52-week intra-day high of $5.02 on Wednesday, with the stock the fourth most actively traded stock on the Nasdaq, as investors bid shares higher as worries increased that the bird flu would reach the U.S. News released by the FDA earlier in the week prohibiting the use of human antiviral drugs on animals also benefiting the stock. However, with shares hard to borrow, indicating that short interest in the stock has soared, it appeared to only be a matter of time before short-sellers, or their cohorts, might attack the company. Friday after the market closed, an article came out causing shares to slide as much as 20% in after-hours trading. The article contained an astonishing amount of false information. The story noted that the company was struggling financially, but as of January 31st, the company had more than $30 million in cash. It also noted that holders of its notes were allowed to convert into stock because the company could not make payments, but the notes were convertible notes, which allowed conversion under their terms. It also noted that GNBT had incurred substantial losses, but failed to mention that virtually every other development-stage biotechnology company generates losses as a result of investments in research and development. Perhaps most damaging, was the assertion by the author of a diabetic newsletter that GNBT’s results showed no efficacy. However, the same individual was previously quoted as saying that GNBT has “the best technology for alternative delivery of insulin”. Shares retreated from their mid-week high but still ended the week up 78 cents to close at $3.72. |
