It is March 28, 2019, and Generex (GNBT) is suffering a share setback to the $ 1.35 level. I am not an insufferable optimist, but I think there is a good chance that this stock could make another 10x move. Here's my thinking:
* The cancer vaccine company has been spun off, and shareholders have one share for every four they owned on the record date of January 30, 2019. I think this is worth on the order of $4 to $5 per share. An extremely close parallel situation was laid out in my article for Seeking Alpha, Generex: Establishing a Value for Antigen Express's Dividend Shares. Antigen Express has become NuGenerex Immuno-Oncology, but it may take the trading of those shares for this parallel situation to make shareholders realize what I have described there.
* New acquisitions. Joseph Moscato has said there is a pharmacy acquisition lying out there somewhere - in the conference calls. Over a year has been spent auditing the company's records. But there may be other acquisitions on deck. Certainly, Moscato and his team are always considering acquisitions. Hard to know what this might be worth, but let's say $3 to $5 per share.
* Uplisting. The availability of the company to tech savvy investors among the mutual funds and hedge funds which require uplisting could add $3 to $5 per share.
The total of these developments could add $10-$15 per share.
I spent a day with Joe Moscato in April of 2018, and half-a-day in November 2019, and my take is that he is a very intelligent, and uncommonly motivated. He has put his own credit on the line to actuate some of these transactions. As far as I can tell, he is completely directed at creating new healthcare solutions for patients, and creating value for shareholders. He put his own dividend shares into the Stock Control Agreement, and I hope the Board of Directors will reward his leadership.
The cancer vaccines could be worth a lot more than the paltry sum I specified in my comparison with Immune Design (IMDZ), a company which seems under the gun, having let go some employees. Only the testing will tell the story there.
But underlying all of my thinking about Generex is the buccal tissue technology, which I expect to be worth billions. Insulin spritzed inside the mouth will save diabetic sufferers a lot of pain, and will improve compliance with doctor's recommendations.
