This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Genta: 1998-2012

Stocks in this article: GNTAQ CTIC SNY

It costs a lot of money to run a drug development program with this level of ineptitude. Of course, all this money was essentially thrown away, leaving shareholders holding stock diluted into oblivion through an endless series of financing and reverse stock splits. This is where the Genta story boggles the mind.

Take a look at Genta's catalog of reverse stock splits:

1997: 1 for 10
2007: 1 for 6
2009: 1 for 50
2010: 1 for 100
2011: 1 for 50
2011/2012: FINRA denied multiple Genta requests for yet another reverse split, evidently saying enough is enough.
July 2012: Genta shareholders approve a "reincorporation" of the company from Delaware to California, merging Genta Delaware into Genta California, effectively trying to game the system so they could institute an up to 1-for 25,000 share split.

Multiplied together, Genta pushed through an astounding 1-for-15 million reverse stock split, beginning with their initial split in 1997 and ending in 2011.

A 1-for-15 million reverse stock split is hard to grasp but think about this way. If you had owned 15 million shares of Genta in 1997 and never sold a single share, today you would own 1 Genta share.

In 1997, Genta had slightly more than 40 million shares outstanding so that means there are just two of these Genta common shares remaining. Their value today: $0.0006.

Okay, here's where Genta gets downright freaky. Let's assume Genta never instituted any reverse stock splits. How many outstanding shares would the company have on its balance sheet today?

The answer: Approximately 100 quadrillion shares outstanding!

This is what 100 quadrillion looks like numerically:


Mind you, 100 quadrillion shares only represents Genta's common stock (15 million in splits multiplied by roughly 6-7 billion shares currently outstanding.

The fully diluted share count, sans reverse stock splits, would be 1 quintillion!

This is what 1 quintillion looks like numerically:


A history of Genta is not complete without mention of Dr. Ray Warrell, chairman and CEO since 1999. In 13 years, Warrell manned Genta's helm through all but one of the reverse stock splits, the failed Genasense program, $1 billion in accumulated losses and an almost 100% plunge in the company's stock price. At Genta's end, Warrell was still chairman and CEO, surely a record for futility and resilience.

2 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs