Genspera Inc (OTCMKTS:GNSZ) Slows to a Crawl
Genspera Inc (OTCMKTS:GNSZ) suddenly sprang back to life on Wednesday when it shifted more than 1.5 million shares and gained 17%, finishing the day at a hair under $0.85 per share. Compared to this, yesterday’s session was an absolute snoozefest. Or was it?
Well, GNSZ closed the session only about 0.3% above Wednesday’s close, but it also registered a dollar volume of over $1 million which means that it’s still one of the hottest tickers around. What’s more it made some wild swings throughout the day and it even logged an intraday high of over $0.90 for the first time in more than two and a half months which goes to show that there are some people who are willing to believe that it will go further up. But will it?
We should find out next week. The company recently announced that Craig Dionne Ph.D. will present at the Rodman & Renshaw 17th Annual Global Investment Conference in New York on September 9. In addition to the corporate presentation, Dr. Dionne will also unveil some data from the glioblastoma Phase II trials. The stratospheric volumes from the last two sessions clearly show that investors are expecting some positive results.
The only problem is, there is a difference between expecting something and actually getting it. Putting your hard earned cash on the line just because you expect some good news is a bit like swimming with sharks just because you expect them to be not hungry.
And even if Dr. Dionne does come up with some positive data during the conference, you still have to be armed with a lot of patience if you’re willing to become a long term shareholder at GNSZ because there will be plenty of trials even after the Phase II tests are completed. You might also want to conduct the proper amount of research and look for the potential problems.
If you do, you’ll see that the company wasn’t exactly flush with cash at the end of the second quarter which is why, in July, GNSZ closed a private placement and sold around 3.6 million investment units at a price of $0.70 a pop. Each unit consists of one common shares and two warrants, with half of the warrants exercisable at $0.80 while the rest – at $0.70.
The stock sold during the placement and the shares underlying the warrants were recently registered with the SEC which means that if the people who took part in the placement don’t feel like waiting for the good news, they have a solution right in front of them. In fact, if GNSZ continues marching north, the profit opportunity for them might become too good to miss.
