Penny Stock GNBT Climbs in a Sellers Market and NEPH Holds Its Own

Well someone has to go against the grain and Generex BioTech (GNBT) http://www.generex.com did just that at the open this morning picking up 7% in share value to boost it to $0.59 and produce a $108 million market cap. With 1,32 million shares traded (at the time of this article) and sitting between its 52-week high of $1.14 and its 52-week low of $0.08, GNBT, though down from a June spike, is holding its own and even advancing.

A 3-MONTH CHART ON GNBT

In June, GNBT announced the development of a new vaccine technology that "could rapidly lead to safe, effective flu vaccines," according to a June 23, 2009 article in the Worcester, Massachusetts Telegram & Gazette. ""It's not a biological process; it's a chemical process," explained Douglas M. Powell, PhD, director of Immunobiology at Antigen Express. "It's not futuristic, it's here now."

I believe the new vaccine has investors fixed on 'holding' GNBT and even buying during the summertime dips. GNBT has developed a proprietary platform technology for the delivery of drugs into the human body by the lining of the inner mouth using the Company's proprietary RapidMist device. The Company's flagship product, an oral insulin called Generex Oral-lyn, is currently available for sale in India and Ecuador for the treatment of subjects with Type-1 and Type-2 diabetes and is in Phase III clinical trials in several countries around the world.

A ONE YEAR CHART ON GNBT

Also holding its own, though giving back some today to the jittery type, is Nephros Inc., (NEPH) http://www.nephros.com/ trading on the Nasdaq in the $1.15 range with a current market cap of $43 million.

THE DJ US MEDICAL EQUIPMENT INDEX

NEPH makes a very unique product and one that is very necessary in the medical equipment field. It July 2, 2009 announcement about FDA approval has sent the stock on the upward trend. The announcement was that NEPH's received 510k approval from the U.S. FDA to market its Dual Stage Ultrafilters (DSU) for in-line purification of dialysate water and bicarbonate solution was significant for the Company's market-share.

Here's why: Within the U.S., there are approximately 4,500 clinics providing over 50 million dialysis treatments to 350,000 patients annually. To perform dialysis, ultrapure water is crucial to the production of dialysate. Dialysis clinics have water purification systems; however, microbial contaminants can originate from the water treatment system, the water distribution loop, or the dialysate concentrates. The NEPH DSU filters particles down to the 0.005-micron level and addresses dialysate contaminants at crucial points.

The DSU filter can be used as the last step in the water purification process to ensure ultra pure water for dialysis procedures. That's a big deal to those 350,000 patients.

A ONE YEAR CHART ON NEPH