Micaella, GIFS has obviously been in a downtrend since last fall. It looks like the 1.43-1.50 support level has been breached. I've been following GIFS for almost 7 months and have never seen a bid of 1 3/8. GIFS has allocated $1 million for a publicity campaign and yet anyone who has purchased their stock in the last 6 months and held is sitting on a loss. That's a lot of pissed off shareholders. You know what pissed off shareholders do? They start to talk to regulatory agencies about the practices of management.
I am going to say it again. If you don't have any reasonable explanation for the decline in the price of the stock (and a massive short campaign is not it), then something is not on the up and up. I KNOW GODDAMN GOOD AND WELL THAT GIFS KNOWS EXACTLY WHY THE PRICE OF THEIR STOCK IS MAKING 6 MONTH LOWS. Nobody knows Genesis better than the management.
Their claims for the low stock price in the past were:
1. Little or no exposure
2. "naked, rampant short selling" and all the associated problems with the OTC BB.
If no exposure was the problem, then why has their stock fallen considerably over the past 6 months? Stocks that slowly gain more attention and are for real should have nice curvy uptrend lines as more and more people discover the stock. None here. In fact, GIFS had it's best days when there was still an air of mystery about it. It seems like the more people find out about GIFS, the more they stay away.
GIFS has been complaining about their problems on the Bulletin Board for a long time now. It's obvious that they cannot control their destiny on the BB. If there are a bunch of shorts that are driving the price down (yeah right) obviously GIFS can't stop them. What's going to be their excuse for the next 6 months?
I will go on record to say that EVEN AFTER THIS AUDIT OR WHATEVER IS COMPLETED THAT GIFS WILL NOT BE ABLE TO SUSTAIN ANY PRICE ABOVE $3. They might get a bounce to $2.50-$3.00, but it won't stay that high for longer than a week.
I almost forgot. Ask yourself this GIFS fans. Where would the price be if Silverman didn't have 300,000 shares (Yes, I'm assuming that some are restricted) and GIFS hadn't bought back 300,000 shares out of the float. With all these shares floating around the price would be more like a dollar. Also, what would the float be if the 300,000 that GIFS supposedly bought back were still in the float? Around 2.1 million? Why such a big increase in the float recently? (Several hundred thousand it appears). Where are these shares coming from? I've said it before, find out why more supply is hitting the market and you will find out why the price is "so low". |
