GNBT: Shares of Generex (GNBT) were pummelled on Friday, dropping 25% on volume more than four times the daily average. Although shareholders finally approved a reverse split earlier this month, investors remain skeptical about the short to mid term potential of the company after it was also announced that the Oral-lyn Phase III trial the company was banking on using as the basis for an FDA approval will not be enough, and new trials will be necessary.
The next news catalyst would be the spin-off of subsidiary Antigen Express, a move announced earlier this year when AE-37 became the new center-piece of the future for Generex.
Even with the dramatic drop of GNBT shares, it's still too early - in my opinion - to bank on a quick recovery, not with the pending reverse split.
I'll continue to monitor this one from the sidelines.
Disclosure: No position.
