Stem Cell Company Stocks 2/3/09: What has Last Week Taught Us

Welcome back to http://tradingstemcells2009.blogspot.com . Let's take a look and see what has happened so far this week.


Notable Stem Cells Stocks moving up 2/2/09 - 2/3/09:
ARIA - UP 29%
ATHX - Up 21%
BHRT - UP 44% (Caution! Volume is still a little low on this one, but it appears to be increasing)

Notable Stem Cell Stocks pulling back 2/2/09 - 2/3/09:
KOOL - Down 14%
PSTI - Down 20%

What Have We Learned from the Stem Cell Stock Moves of Last Week?

When trading quick moving stocks like these, you have to have a game plan. Let look back at the past week and a half. Yes, a lot of the stem cell stocks began to move shortly after Barack Obama was elected president back in early November. However, I keep going back to Geron Corp’s announcement the morning of 1/23/09 because that was a defining turning point. Every stem cell stock we are following is up since that announcement. The first significant thing this brief stock history tells us is which stocks will give us volume. Volume is particularly needed when dealing with really small market caps stocks that frankly most of us had never really heard of prior to Geron’s press release.

Which Stem Cell Stocks Experienced Significant Moves First?
GERN and STEM. GERN, of course, moved because the big news came directly from them. STEM moved immediately because it has the most recognizable and notable name in the sector. However, the largest immediate mover was MCET.OB moving from $0.0043/share to as high as $0.07/share in 2 days. That’s over 1500%! From what I can see, there really isn’t anything that stands out about the company, but it moved quickly because it had the combination of having a super cheap share price and a relatively low number of outstanding shares (76 million per Google Finance)

Which Stem Cell Stocks Experienced Significant Moves Next?
CBAI.OB, SCLL.PK, and ACTC.PK. The first two listed stocks were comparable in share price to MCET.OB, but had a lot more shares outstanding (+300 Million and 1.1 Billion respectively). CBAI.OB has a strong PR machine, a solid business plan, and a notable investor. SCLL.PK has several stem cell related patents and is a potential takeover candidate. It appears that traders/ investors began to analyze companies in the sector a little more stringently and then "doubled down" on the ones that appeared to be the most solid. ACTC.PK, also fits this criteria despite being a little more expensive from a share price standpoint.

LSTM.OB also move pretty significantly around this time because its share price was comparable to MCET.OB, CBAI.OB and SCLL.PK. However, there are some questions regarding whether LSTM.OB is a serious stem cell company due to its involvement in other nonrelated fields.

During the later part of last week, the final big mover was PSTI. Its tiny 6 million share float made it too irresistible for traders late in game not to push up.

Based on the early stock trends of this week, it appears most of the stocks are either pulling back or leveling off. Wednesday or Thursday of this week may be a good time to begin thinking about establishing or re-establishing positions in your favorite stocks for the next run.

Final Synopsis
The stems cell stocks that have moved the most have had volume and at least one of the following criteria: super cheap share prices, low outstanding shares, and company legitimacy. After compiling all of this data it appears that if you want to be making money as quickly as possible, you want to watch CBAI.OB, SCLL.OB, ACTC.PK, PSTI, and MCET.OB. If you see one of these making a move, you’d better act fast.

12 comments:

  1. Is there any concern about investing in MCET now since it has already gone up 1500%?

    ReplyDelete
  2. MCET.OB has pulled back quite a bit (now $.0175/share). Pricewise, I was expecting it to get back on par with CBAI.OB, which it has done. If Obama says the right things in the next couple of weeks or if the FDA does something to further spring Biotechs, I could see traders moving it quickly again. However, many people have been establishing a "buy and hold" approach with some of the better names in the industry. With float in the likes of CBAI.OB and ACTC.PK shrinking daily, they may be better options.

    ReplyDelete
  3. Very informative, thank you.

    Check out my blog, www.stemcelltracker.com to keep an up-to-date eye on the industry, all in one place.

    ReplyDelete
  4. Card, great comments. How do we determine the float of a stock like CBAI or ACTC? I don't see that listed under a stocks profile. Are you the one who runs this site? Why isn't there an update yet and now it's 2/5?

    ReplyDelete
  5. Thanks Ty! I'll check out your site too.

    ReplyDelete
  6. Thanks for reading M! Yes, I run the site. As far as a stock's float, it's often difficult to determine. Most people try to find the insider and institutional ownership of a stock and then deduct it from the number of outstanding shares. The biggest problem though is that sometimes the share information for stocks found on most Finance websites (ie. Google Finance, Yahoo Finance, etc.) is incorrect.

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  11. I was expecting it to get okay on par with CBAI.OB, which it has done. If Obama says the sect things in the incoming yoke of weeks or if the FDA does something to more outflow Biotech, I could see traders kinetic it speedily again. Nonetheless, many group hold been establishing a "buy and hold" formulation with both of the finer names in the business.


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