GLGS: +90% until June 30th

Glycogenesys, Inc. (GLGS). The Group's principal activities are to develop pharmaceutical products based on carbohydrate compounds and related technologies. The Group has developed a drug called GCS-100 aimed at treating multiple forms of cancer.

I'm sure we're going to read many bullish news from GLGS in the next few days, like the one we had on Wednesday: New Discovery Provides Mechanistic Picture of How GlycoGenesys' GCS-100 Targets Malignant Lymphoma Cells And Induces Cell Death

This company needs to be listed on the Nasdaq, its survival and prosperity depend on it. The Nasdaq Exchange has this rule: «Nasdaq Marketplace Rule 4310(c)(2)(B), which requires listed companies to have (i) a minimum of $2,500,000 in stockholders’ equity, (ii) $35,000,000 or more in market value of listed securities or (iii) $500,000 of net income from continuing operations for the most recently completed fiscal year or two of the three most recently completed fiscal years.»

Nasdaq wrote a letter to the company saying that as of June 30th it must have at least $2,500,000 in stockholders’ equity in order not to be delisted. Checking GLGS's 10-Q we can see that the company had just $613,702 in stockholder's equity in 31 March 2005, when it was quoted at $0.77 a share.

With simple math we can conclude that GLGS needs to get to $3.13 a share in order to have the desired and obligatory $2,500,000 and needs that stock price until June the 30th.

That's why, I believe, the chart looks like this:



Insiders and current shareholders are pushing the price up to meet the Nasdaq's requirements as of June 30th. I think they're gonna make it, they just got a lot of money:

GlycoGenesys, Inc. Closes Second Tranche of a $6,500,000 Equity Placement to Institutions and Accredited Investors; Second Tranche Represents $4,500,000 in Gross Proceeds

Every news from the company will be bullish in the next few days ... expect a lot of euphoria to hit shares, as insiders and specially actual shareholders (that certainly don't want the company to be delisted) will search for help in this task ... and I'm going to help them buying GLGS at tomorrow's open.

Everyday I will analyze GLGS after the market close until I sell the stock. I always tell I'm going to sell before I actually take action. You just have to follow the answers to this post.

Everyday our team scans and filters 11000 stocks to come up with the 3 best stocks to buy on a short term basis. We run a diversified public portfolio which is up 114% since May 2005. We have great traders in our community which take advantage of short term opportunities in stocks.

If you want to join our community and receive our free newsletter, please register.