Genspera Inc. (OTCMKTS:GNSZ) Shoots Up The Charts
Genspera Inc. (OTCMKTS:GNSZ) added 17.64% to its market value yesterday, for no obvious reason whatsoever.
More than $1.5 million worth of GNSZ stock changed hands yesterday, in what has become the the most intense session that the company has seen in more than two months. However, the reason behind the sudden burst of activity is far from clear.
The GNSZ‘s movement in yesterday was quite reminiscent of the usual chart pattern that which tickers make when they are targeted by a successful paid pump campaign. However, this does not appear to be the case with GNSZ. In fact, one would be hard pressed to find any good reason for its sudden jump, even with extensive due diligence.
The company hasn’t had any decent media exposure in quite some time. It is not like GNSZ has made a meaningful announcement lately, and it is not like it has published a new and impressive financial report either – and the last one showed a pretty grim picture:
Cash and cash equivalents – $121 thousand
Total current assets – $202 thousand
Total current liabilities – $3.1 million
Net loss – $1.5 million
Said report also reveals the fact that GNSZ‘s CEO holds two convertible notes worth $0.3 million that are due, and then there’s more than $60 thousand worth of debt to third parties that could be turned into at a conversion price of $0.50 per share and dumped onto the market as well.
The company’s share structure is far from perfect as well, with GNSZ having issued 4 out of its 37 million shares currently outstanding between May 1, 2015 and August 3, 2015.
Although both the outstanding convertible debt and the dilution’s numbers aren’t all that staggering, they serve as proof that the company doesn’t shy away from both of those disruptive and dubious activities.
True, the implications of that fact in and of themselves may not be able to bring a ticker down under normal circumstances – but investors should not forget that there seems to be nothing substantial pushing GNSZ up the charts to begin with. Which means that any and every little thing may push the ticker from its high perch. With this in mind – let the buyer beware.