Generex Biotech Corporation (GNBT)


Between Ensco and Hyperdynamics, I figured I had plenty of 'speculative exposure' to the oil / energy segment. In search of other segments, I followed a YMB spammer to Generex.

Generex at this time looks like they may have the 'killer app' in a synthetic vaccine technology that can ramp up for bird flu production.

They also have a promising insulin delivery program in Oral-Lyn, a sort of 'breath spray' for insulin that's absorbed through the mouth tissues. This is distinctly different from Lilly's inhaled product, as it doesn't have the 'foreign particles in lungs' problem. Getting diabetics away from 'needle sticks' sounds like a lifestyle killer app.

It feels like a strong pipeline for a stock that is trading at this level (bought in at $1.31 - $1.45 in February 2006).

As a side note, this board seems to be rich with 'tips' in that the regulars discuss what else is hot. Somehow, this comes off as genuine, and not 'spam pumping'.

March 20, 2006 update:
Banked some profits off my initial position by selling at $3.20. This also 'cleaned up' an account that I want to trade as a 'rules based' ETF play. Oddly enough, I 'added' GNBT (though in smaller quantity than what I sold) to one of my other IRA accounts at that same $3.20. GNBT closed the day at $3.33, so it's still trending up.

March 22, 2006 update:
This is one wild ride! Dropped like 35% in the space of a few minutes. We may never truly know 'what happened?', but it looks like somebody with a bunch of shares (a hedge fund?) dropped a large enough market order to start an enormous avalanche of 'sell stops'. This stock had risen about 40% in the previous two and a half days, and the 'new folks' had set sell stops to protect themselves.

Google snapshot of GNBT on the fateful day

Presumably, they had a strategy to snatch up the shares they shook loose at the dropped price, or they profited from short selling. Seems to be recovering (though slowly) the following day.

This article gives me pause, saying that GNBT is more PR than substance, both for bird flu and for Ora-Lyn. Might be a MoMo move to scare shares loose. Should be an interesting week. I would consider adding on the dip, but I'm already holding a bit much on this stock, and in 'bird flu' stocks in general.

Here are a couple interesting posts, commenting on GNBT on the HEB Yahoo Message boards.

Interesting post on GNBT, HEB, and NVAX (I'm in all three).

2010 update:
I have a bad habit of "letting my losers run", hoping that they'll come back from the dead. I got a call from a New York broker who got my name (as a shareholder of record) from Generex. He promised great things in future announcements. In the spirit of throwing good money after bad, I bought a new chunk of shares at $0.50 on April 15th. And they've been going down....

Sold that position at $0.536 on 9/20/10.



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