Stem Cell Company Stocks 2/5/09: Why are the "Stems" Up today?

Many of the Stem Cell Stocks moved up quite nicely today. This includes some previous “big movers” that finally bounced back after selling off for most of the week. You would have been making money today had you bought during the pullback. See below for some of the more notable moves:

Ariad Pharmaceuticals (ARIA) = Current Price: $2.68; Up 13%
- Up 4 straight days and 60% for week so far; It’s due for a pull back

Athersys, Inc.(ATHX) = Current Price: $1.10; Down 7%

- Pulling back a bit after a nice 4 day run

Cord Blood America Inc.(CBAI.OB) = Current Price: $0.0136; Up 12%

- Another stock coming back

MultiCell Technologies (MCET.OB) = Current Price: $0.023; Up 44%

- Coming off 5 straight down days, it may be preparing for another run

Pluristem Therapeutics (PSTI) = Current Price: $1.56; Up 20%

- Dropped from $2.21 to $1.14 in just a couple of days; seems to be coming back

Why Did Many of the Stem Cell Stocks Comeback Today?

The obvious answer would be that the market was up, so, the “stems” were up. Although there may be some validity to that thought, this sector has been in bull mode despite the DOW beginning to consistently dip below 8000. Consequently, it has got to be something else.

There is a very strong possibility that today’s strength was a function of Wall Street discovering “political action” involving the amendment of the Public Health Service Act. Yesterday and today, legislation was introduced and referred to the House Energy and Commerce Committee to provide for human embryonic stem cell research. The critics would say that this isn’t that big of a deal because there are still several stages remaining before any formal changes can occur. However, I am of the opinion that this is “stock moving” news because it further reinforces the rumor that government will make stem cell research a priority and sufficiently fund it. Don’t forget that the anticipation of “what could be” is far more powerful than “what is” when it comes to the stock market. Look for this positive momentum to continue Friday.

Hot Stem Cell Stock Topic to be Featured Next Week:
“I really believe in the potential of stem cell research and would rather invest than trade. How will I know when to exit my position?"

Check back to frequently where the stem cell stock “homework” is done for you.

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