Genta Incorporated (OTC:GNTA) had a monster of a session last Thursday after it announced some results from a clinical trial.
On the day GNTA closed up 161.54% at $0.0068 on close to 440 million traded shares. The price pulled back 23.53% the very next day and it was $0.0052 at the close. The volume was also significantly lower, but still nowhere near the average.
The apparent reason for the amazing market performance was a press release showing some optimistic results from a Phase 2b clinical trial using tesetaxel. The press release also states the “study” is still ongoing.[BANNER]
Trial results of potential cancer drugs are always exciting, but GNTA has been in sub-penny land for months for a reason.
Like a lot of unestablished pharmaceutical companies, GNTA has spent millions of dollars and reports huge losses, but what may be more disturbing about GNTA is the monstrous dilution of the stock.
The OS on Aug. 10 was a little short of 224 million shares. Three months later, on Nov. 8 it had multiplied to 859 million.
How traders stack the huge losses and dilution against the potential of GNTA’s drug will become more 
clear today. It should be noted that short selling was significant on both Thursday and Friday, reaching above 40% of the volume.
