An compelling issue for traders now is whether GENM stock can keep its glorious gains, that started a couple of days ago with the sending of the first trading alerts on Tuesday. Yesterday, the stock was again a tremendous winner, closing 13.95% higher than the previous session at $0.49 for a share. In support of the promoters the company also announced a supply contract with an Irish pharmaceutical company. As the news was huge, raising probably hopes for first product revenues to follow, the trading volume kept growing as well and exceeded 454,000 shares. Technical indicators remain bullish and reveal possible further upside potential, though not all factors look so positive.
Even if GENM got exceptional trading interest this week, it looks as not all the traders attracted by the promotions were convinced of the company’s ability to make any profits from its only substantial asset, its medical registration right for certain generic drugs. The alerts attracted namely a number of shorters as well.
Interesting enough, GENM did not get shorted until last Friday, when over 98% of the trading volume consisted of short sales. Since the official start of the promotions, the shorting peak got logically reached on Tuesday with more than 46.47% shorting volume. Since then, the shorters are drawing back from the market, maybe expecting to close their positions as GENM share price starts falling back down.
The new promoters, that have sent alerts to their subscriber lists disclose compensations of either $32,000 or $35,000, paid by a third party. As it is not known how large the reached by the alerts trading community actually is, GENM further action in the coming days can only be speculated upon at this point.
