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Last week was a tough one for the Stem Cell stocks. Practically every stock that we follow was down this week. Astonishingly, for first time since our reference point of 1/23/09, a few stocks actually finished below the stock price of that day (most notably STEM).
Top Stem Cell Stock performer of the Week:
Cryo-Cell Intl (CCEL) = Up 18% on very low volume. It's possibly riding the coattails of the CBAI.OB's success, which impressively finished flat for the week
Worst Stem Cell Stock Performer of the Week:
Geron Corp (GERN) = Down -21%; It had been flying high pretty consistently until they announced a secondary offering, which gave people a reason to sell the stock off. I'd expect a pretty sharp recovery this week.
Stem Cell Stocks Performance Since 1/23/09
Market Cap Over 50 Million
Ariad Pharmaceuticals (ARIA) = Current Price: $2.54; Up 76%
Aastrom Biosciences (ASTM) = Current Price: $0.52; Unchanged
BioTime, Inc. (BTIM) = Current Price: $2.08; Unchanged
Celgene Corp (CELG) = Current Price: $52.31; Up 6%
Geron Corp (GERN) = Current Price: $6.38; Up 22%
ThermoGenesis (KOOL) = Current Price: $0.74; Up 36%
Osiris Therapeutics (OSIR) = Current Price: $20.11; Up 7%
StemCell Inc. (STEM) = Current Price: $2.12; Down -1%
Market Cap Under 50 Million
Advanced Cell Technology (ACTC.PK) = Current Price: $0.17; Up 42%
Athersys Inc. (ATHX) = Current Price: $0.97; Up 43%
Brainstorm Cell Therapeutics (BCLI.OB) = Current Price: $0.09; Down -10%
Bioheart Inc. (BHRT) = Current Price: Current Price: $1.00; Up 27%
Cord Blood America Inc. (CBAI.OB) = Current Price: $0.0141; Up 271%
Cyro-Cell Intl (CCEL.OB) = Current Price: $0.65; Up 41%
Neuralstem (CUR) = Current Price: $1.30; Down -9%
International Stem Cell (ISCO.OB) = CurrentPrice: $0.39; Up 34%
LifeStem International (LSTM.OB) = Current Price: $0.0140; Up 259%
MultiCell Technologies (MCET.OB) = Current Price: $0.0180; Up 319%
Pluristem Therapeutics (PSTI) = Current Price: $1.16; Up 82%
Stem Cell Therapy Intl (SCII.OB) = Current Price: $0.08; Up 60%
Stem Cell Innovations (SCLL.PK) = Current Price: $0.010; Up 82%
Possible Catayst for the Week
- 4th Annual Stem Cell Summit on February 17, 2009; several companies that we follow will be participating in this event; could provide more press for the sector by news outlets; see http://www.stemcellsummit.com/ for details
- Potential for President Obama to give an executive order to allow funding for stem cell research; It could be done this week to coincide with the freshly approved stimulus package
Final Thoughts
From the surface the charts of most stem cell stocks are beginning to breakdown and the bashers will be quick to point out GERN secondary offering coupled with PSTI's a couple of weeks ago is a dooming pattern of stock killing dilution. I say don't be fooled. Dilution is only a big deal when you are dealing with stocks with actual earnings. The fact of the matter is that besides the big market caps, most Biotech stocks rarely if ever have postive earnings. There value is typically measured by pipelines, patents, FDA approvals, and positive test studies. With all this said, I think this upcoming week is a very important one for the sector. After a couple weeks in a row now of sideways to downward trading action, it is important that stem cell stocks reestablish there strength. After such a sharp sell off, I expect GERN to lead the charge. This has the potential to be a good week to make money trading stem cell companies.
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Card, I heard CBAI is increasing it's AS to 6 billion and some people are worried but others are not. I actually just spoke to Paul of investment relations at CBAI and he was saying how the increase in AS won't be voted on until March 23 so even if it doesn cause dilution it won't be till after then. He said the increase in AS is used to acquire other companies/property or stave off a takeover attempt but it's only 1 factor among many since stem cells are the place to be now. So I have no reason to worry now holding CBAI at .0139?
ReplyDeleteCard, there is a strong change CBAI will plummet Tuesday AM with the news they are planning to have a vote next month to dilute shares by issuing 6 Billion more authorized shares. I know it's a vote and over a month away but you know how the market reacts to this kind of news. Am I safe holding CBAI at .0139 or should I sell? If it does plummet to .005/share do you expect it to rebound to .02 or higher after Obama/Congress give good stem news soon? Thanks
ReplyDeleteM, right now the MM is doing his usual once or twice a week shakedown. Remember to expect volatility. Other than CBAI, all the other "stems" are flying. It looks like I was right regarding the catalyst for the week. CNBC appears to be all over the Stem Cell Summit. My advice would be to be patient. CBAI was due to pull back more so than the others because of unusual strength last week. Your $0.02/share target still looks good.
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