Generex Biotechnology – GNBT – Part Deux

The ole pop-n-drop played out in the final hour of trading Tuesday. After GNBT hit $3.35, it quickly popped back above $4.00 to $4.18 before the sellers took control again. A new session low was hit at $3.11, filling the real gap at $3.33-3.45 from March 20-21. Volume surged to over 80 million shares, 10 times the average daily volume for the prior 3 months. Two small real gaps remain below the market at 2.36-2.39 and 2.98-3.05. Note that Joe Investor was warned by the news of everyone jumping onboard Monday.

Generex Biotechnology – GNBT

Yesterday I warned about the runups in the “Avian Flu” stocks and that late to the party Joe Investor should be cautious. Today as I am writing this, GNBT tagged $5.02 intraday, its highest level since June 2002, and stagnated. The ensuing scramble for the exits once the selling started pushed the equity down to $3.35 so far. The breakout area was at 2.15-2.75 – look for support there.

The other five stocks mentioned, AVAN, CARN, GNBT, HEB, NVAX, VICL, were lower as well, though the 33+% drop in GNBT is the “winner”. A quick snapback above 4.00 would not be surprising as this stock begins to back-and-fill the recent runup move.

Avian Flu Concerns Continue to Support BioTechs – AVAN, CARN, GNBT, HEB, NVAX and VICL

Joe Investor continues to search for a way to make some cash on the current Avian Flu concerns. Recently, several equities have had sizable runups as money flows into this area. A few of the key players – or at least POTENTIAL players – are AVAN, CARN, GNBT, HEB, NVAX and VICL. They’ve all had substantial gains so coming late to the party now requires caution. Good luck!