There are several catalysts which sparkle each trading frenzy that occurs for Genta Incorporated (OTC:GNTA). Yet, it is not a problem of monitoring them, but of understanding the true impact they will have on the market. More often than not, it is this lack of understanding that leads to unhappy faces. 
This week, however, Genta was able to bring a smile to its shareholders. The stock price is heading for a 100% increase compared to last week. Yesterday was of particular interest, since it was the most intense trading session this week. More than 15 million shares changed hands, which is more than the previous three days combined. It was a day of 64% in the price and a perfect time for speculations to form all over the Internet. There is no company announcement this week, let alone yesterday. The usual catalyst – promotions, are not in place either.
There is something, however, which has been long expected from investors. It is the Phase 3 results for the leading product of the company – Genasense. Due in April, they could ultimately determine the short and maybe middle term performance of Genta on the stock market. It is also important to mention that financial results were also announced for last year, together with the pending trial results to come.
Now, various forums mention head and shoulders, golden cross and other chart patterns, since they point them as signs for what a profitable investment Genta could bring. What for some reason they fail to mention, is the results in the last 10-K form with an end date Dec. 31st that just came out. Among other figures, it includes the following: [BANNER]
- total current assets of $13,756;
- total current liabilities of 6,234;
- accumulated deficit of: $1,197,726;
Now, for an OTC company, these numbers are not so bizarre. Well, until you read that they are in thousands. What this means, is that Genta Incorporated has an accumulated deficit of a little less that the external debt of Albania for example. Unless this is a typo, and it does not seem to be one since all SEC filings include it, Genta has a long way to go in order to present itself as a stable and growing company.
This is why sound understanding of the catalyst for the stock market is vital; thus, looking at charts and drawing conclusions is rarely enough for penny stock companies. Genta might indeed seem as a lucrative opportunity, but it presents a level of uncertainty which not all investors value.
