Generex Plans Reverse Stock Split
As a result, the proportion of the company owned by Generex shareholders will likely fall relative to the total number of company shares outstanding.
Generex says the company is maintaining its treasury share count at 750 million to "facilitate our ability to raise additional capital to support our operations," according to the company's proxy statement.
"That's like a reverse stock split with management's fingers crossed behind their backs," said StockSplits.net's Johnson. "Management retains control of a lot of stock, which is not the kind of control investors may want management to have" because of the increased dilution risk, Johnson added.
Recent efforts by other drugs companies to enact reverse stock splits have not convinced investors to start buying.Shares of Adventrx Pharmaceuticals (ANX), Marshall Edwards (MSHL), Aastrom BioSciences (ASTM), GTC Biotherapeutics (GTCB.OB) and Epicept (EPCT) are all trading lower today despite enacting recent reverse stock splits to boost the price of their stock. -- Reported by Adam Feuerstein in Boston. Follow Adam Feuerstein on Twitter.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV