Yesterday, GENM found again good support and closed the market at $0.45 with a 2.17% downward correction from the previous day close. Trading volumes are still significant with 182,000 traded shares for the day. Starting on Tuesday this week, new promotional e-mails have been sent out to traders, serving again as explanation for the abnormal trading activity in the past two days.
Total compensation for this month amounts for $15,000, an the two latest promoters are looking for a jump above the $0.55 resistance, marked when the shares were firstly “introduced” as huge potential gainers. Otherwise, the marketing arguments remain the same: Genmed Holdings’ enormous future profits from its generic drugs to be sold in Europe.
The future profits might not be so fictitious, but currently the news that could really excite the market should concern some raised funds by the company, instead of ambitious plans about new drug registrations, product line expansions and general market data. As known, the company’s has already enough of registrations, whereby its net tangible value is in fact negative, making the effects of the promotions noticed not only on the increased volume.
The market cap is currently over 17 times the value of GENM stockholder equity, not to speak about the almost 13,900 premium to the reported revenues. Another known fact are the company’s convertible into stock and currently unplayable with cash liabilities, which together with management plan to raise cash through equity financing made GENM look like a ticking dilution bomb in its latest available quarter report.
