3-17-09 Will the Stem Cell Stocks Participate?

The stock market continues to press upward, but many people are wondering why the stem cell stocks haven't participated in the rally. I feel that it is just a matter of time. There are so many sectors in the market that have really been beaten up over the last 6 to 8 months. Right now, it is their time to shine. The "Financials" and "Auto Suppliers" are the hot sectors. These stocks were literally thrown away and left for dead. Now, it's an entirely different story. When you have multiple daily runs of 20% - 60%, stock traders and investors will gravitate to what's hot and ride the momentum. Citigroup is up around 150% in a little over a week. Auto supplier stocks like Hayes Lemmerz Intl (HAYZ) and Tenneco (TEN) are up 300% - 400% during the same time frame. Technically, the stem cell stocks have been one of the more successful sectors despite the accelerated downturn of the stock market. Every sector at some point has their day in the sun.

We will see what the rest of the week will hold, but maybe today, 3-17-09, was the start of the the stem cell rally. Most of the large cap stem cell stocks moved upward pretty hard today (STEM was up 16%). The smaller caps and penny stem cell stocks continued their slide, but history has shown that these stocks typically follow the large caps. At the beginning of a run, it is rare that they move simultaneously higher with no news. Keep a eye on the stem cell sector the rest of the week. The market looks poised to continue higher. Let's see if the stem cell stocks catch up.


  1. Card,

    Do you track the dates of shareholder's meetings for any of the SC companies? CBAI has their meeting this coming Monday, 3/23. It would be interesting to see in one place the dates for the companies you're tracking and to then note the price action in the days before the meetings and thereafter.

  2. dhippe, I've actually considered doing this. However, looking at the price action the past couple of months, share holding meetings and quarterly earnings have done very little to move these stocks (if there's been one). I'll keep an eye on it though.

  3. Card, I bought STEM the Friday before the Obama executive order and then on the Monday he signed it at 2.08 and 2.00. There was so much buzz about it going to around $3.00 THAT day yet it's been very disappointing to see it down like this. When can I expect to see that $3 range with STEM? Even higher eventually, right? I'm sure we'll even see $5 plus eventually