Genova Biotherapeutics is a perfect pump & dump

If you have ever wondered what a pump & dump is, take a look at the financials of Genova Biotherapeutics (10Q here). They have $35,000 in the bank and somehow are confident that can use that money and patents they bought for $92,000 to develop a cure for cancer.

The company was formerly a travel agency:

“From inception, Kinder Travel Inc. had been a travel agency offering a full range of travel services including corporate travel, vacations, cruise holidays, and group tours. Since Kinder Travel Inc. was incurring continued losses in the travel industry, the Board of Directors decided it was in the best interests of the Corporation to pursue other business opportunities. Through his past contacts in the bio-medical industry, the then President of Kinder Travel Inc. initiated negotiations with Phoinos Oxford Lifesciences Limited, a company incorporated under the laws of the Federation of St. Kitts & Nevis (“Phoinis Oxford”), for the purchase of medical patents for the treatment of prostate and breast cancers.  On April 15, 2009, Kinder Travel Inc. entered into an asset purchase agreement dated April 15, 2009 (the “Asset Purchase Agreement”) with Phoinos Oxford.

The Company subsequently changed its to “Genova Biotherapeutics Inc.” Our shares of common stock now trade on the Over-the-Counter Bulletin Board under the symbol “GVBP.OB”.”

The company has issued numerous misleading press releases:

GENova Biotherapeutics and Prime BioResearch signs LOI on diabetes and cancer cure [Cure! Wow, they bought a few molecules and now they already have a cure (not just a treatment) for cancer!]

New stem cell identification technology could cure breast cancer [again, they are curing cancer!]

Genova doesn’t even own patented molecules. The patents are pending.The company states in another press release that “The Company is aggressively acquiring patents involving the latest generation of biotherapeutic technologies that can cure cancer without any side effects.” That is pretty amazing considering they have $35,000 (Canadian) in the bank. If they can buy cancer cures for that kind of money then they must be brilliant!

Numerous stock touts are pumping Genova stock and idiots are eating it up: the stock closed at $0.80 today on volume of 58 millions shares. Those who believe the hype will soon be left with very little, just as with all pump and dumps (such as recent favorite Spongetech, SPNG).

If you ever run across such a hyped-up company with no real assets, run far and fast. The press releases put out by Genova are over the top even for a pump & dump and I think it likely that the SEC will halt trading in the stock or sanction the company at some point.

[Update: GVBP was halted on 9/23/09 and will be unhalted on 10/6/09. See the SEC press release (PDF).[

Disclosure: No positions. I am a daytrader so I may trade this after the publication of this post.

0 thoughts on “Genova Biotherapeutics is a perfect pump & dump”

  1. Now they are in “advanced negotiations to acquire a number of patents from TheraGlass Ltd”….What exactly IS advanced negotiantions? Meet at the local bar is what I think. I posted this on Yahoo groups, thought my sarcasm was obvious—but some people actually think this is real news. I still refuse to believe that people are that stupid….has to be holders waiting for more upside action. Or we as a race are in trouble.

  2. Do you think that is what drove the price down or was it just a conicidence? I managed to pick up an extra 1,000 right after it came back online due to the frenzy.

    What are the thoughts about shorting at this point?

    Best regards…

    1. That was after it had already fallen to about .50 or so. At this point I wouldn’t short … the big drop is done. It will likely be choppy for days or weeks before the next big dump.

  3. Type your comment here

    Reaper :

    Yes. I wonder why Google considers that a “news article” though.

    Bad algorithm I guess.
    They’ve considered some of my past blogs as “news” as well.

  4. Ugh. I accidentally deleted the following comment from “trendpicker”. I really need to wait more than a few minutes before waking up before trying to be productive 🙂

    Trendpicker wrote: “you just made out….you don’t pay back the funds that were deposited in your account….same as going to /00000000/”

    I assume he was replying to the question by Island Minister: “Hey reaper- quick question: If you’re short a stock, and the SEC halts it, what happens to your shares?”

  5. I bought gvbp @.30 and missed it when it jumped 1.18. it’s now coming down @ .50 should I sell at this point and take .20 profit? or you think it will go back up a little?

    1. I don’t give personalized investment or trading advice. But in general, your entry point should not affect your decision. The question is do yo think it is going to go up or down? If you don’t know, then perhaps selling would be a good idea.

  6. Facts :
    Cheongam “University” is a Nursing School (college) with no Faculty of Medicine or research center of any kind… The Medical Information Department is where you go to see a nurse to ask questions about general health issues and certainly not stem-cell research !
    There is no one with a Ph.D at Genova or any significant fumdamental and clinical research skills or experience… How can you “fast-track” Tetanolic acid and Prostaganin ( have you ever seen a scientific paper on those two ?) through the FDA without any credible scientific evidence or research in humans supporting your claims ?? FDA officials are not idiots (unlike so-called investors sometimes…)
    If those two products are so hot, how come, Big Pharma, with their armies of real scientists, missed them or their incredible potential ?!! Genova a “take over target” !! What a joke…
    The Bigger the lie, the more believable it becomes in popular culture…
    This stock will tank all the way down to under $0.10 within a few days… Get out and salvage what you can now… Live and learn !

  7. This is breathtaking BS, folks!

    “GENova Biotherapeutics Inc. (“GENova”) announced that it is preparing for patent application filings in both the US (at the FDA (U.S. Food and Drug Administration (www.fda.gov) for a 510(k) submission) and in Europe through EMEA (European Medicines Agency) subsequent to expected efficacious and non-toxic pre-clinical results for Prostaganin.”

    First, what does FDA have to do with PATENTS??? Last time I checked they are filed at Patent and Trademark Office.

    And second, 510k process at FDA is for medical devices approval. Drugs go under 505.

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