Violeta Slavtchevska

Genta Incorporated (OTC:GETA) Gives Still No Hopes for Recovery

by Violeta Slavtchevska October 8, 2010
On no news since the end of September, Genta Incorporated (OTC:GETA) tanks even further down on its strong and lasting downtrend. Yesterday, the share price saw the next yearly bottom for this week and the outlooks remain pessimistic.GETA.png

Neither the stock promotions, nor the trading alerts were able to prevent GETA from falling deeper and deeper over the last months. The share price lost yesterday another 17.25% of its value on dramatic and possibly panic selling out. Over 1.13 million shares were traded, the stock closed the session at $0.331 for a share and marked the next 52-week bottom at $0.32 during the day.

Even at this levels, the shares show some shocking potential to get even more oversold and the technical indicators do not suggest that near-term recovery could happen. GETA management will now have to find some other magical means than the ones we reported about previously if it is to save the stock from further value losses. A hard task, as the company's fundamental base shows urgent need of improvement, which is however not likely to happen in the near future.

After the next portion of senior convertible notes issued in March this year, the heavily loaded with debts balance sheet showed at the end of June a total of $145 million in long-term debts, almost all of which in the form of convertible notes. The amount not only hides too high dilution risks and implies that the company's next financing activities will have to come at highly unfavorable terms, but also looks unmanageable for GETA's total assets of $24 million. GETA's product sales have also not been able to add shareholder value. They are growing extremely slow and look marginal compared to the expenses.Genta.jpg

GETA's reported profitability in the last quarter was due to the company's methods of accounting and resulted from the reevaluations of some of the owed amounts. It seems that GETA will have to rely on traders and speculators to see its stock pushed up from the bottom.

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