Stem Cell Stocks 3/14/09: The Week That Was

The stem cells stocks began the week with blaze, but ended rather anticlimactically with just a smolder. Most of the sector ended positive for the week, but most investors and/or stock traders were disappointed that gains from last Monday morning didn't hold.

Top Stem Cell Stock Performer(s) for Last Week:

- Pluristem Therapeutics (PSTI) = Up 44% for the week; This low floater is now getting a lift after the hangover from its secondary offering a little over a month ago.

- BioTime, Inc (BTIM) - Up 30% for the week; The market appears to understand that this is one of the few stem cell stocks that will directly benefit from Obama's executive order to unfreeze human embryonic stem cell federal funding. Click here for blog addressing this in more detail

Worst Stem Cell Stock Performer(s) for Last Week:

- Cytori Therapeutics (CYTX) = Down -19% for the week; This stock got a big pop from the Obama executive order as did many of the other stem cell stocks. However, it plummeted shortly after their secondary offering was announced. The dilution appears pretty significant (36% after all warrants are exercised) and the market punished them accordingly. The company desperately needed the money and is now near its all-time low share price. With all that being said, the company still has great technology and a solid future now that it has an infusion of capital. Looks to me like a great buying opportunity from here at any sign of a trend reversal.

Stock to Watch:

- International Stem Cell Corp (ISCO.OB) - Out of all the stem cell stocks, this one has by far the best looking chart and momentum. The month of February was just "noise" in what appears to be a steady upward trend. Also, volume is steadily increasing despite the rise in share price. This is always a good sign for stocks $0.25 - $1.00 per share. I think this stock is becoming a favorite because the company addresses one of the issues that is now at the forefront of Obama's executive order. Supposedly, human embryonic stem cells federal funding was initially suspended due to concerns over embryos being destroyed in the testing process. ISCO.OB was the first company to perfect a method of creating human stem cells from unfertilized eggs. Their unique human stem cells, called "parthenogenetic" stem cells, have ethical advantages since they do not require the use of fertilized embryos. The stock was consistently priced around $3/share during the first half of 2007 until it mysteriously dropped. With the current environment being so strong for stem cell stocks, it could have quite a run. See below for ISCO.OB's chart:





Stem Cell Stocks Current Price and % Up or Down Since the First Rally on 1/23/09

Market Cap Over 50 Million

Ariad Pharmaceuticals (ARIA) = Current Price: $1.33; Down -8%
Aastrom Biosciences (ASTM) = Current Price: $0.40; Down -23%
BioTime, Inc. (BTIM) = Current Price: $2.21; Up 6%
Celgene Corp (CELG) = Current Price: $48.20; Down -2%
Cytori Therapeutics (CYTX) = Current Price: $1.88; Down -41%
Geron Corp (GERN) = Current Price: $4.36; Down -16%
ThermoGenesis (KOOL) = Current Price: $0.46; Down -15%
Osiris Therapeutics (OSIR) = Current Price: $18.13; Down -4%
StemCell Inc. (STEM) = Current Price: $1.65; Down -23%

Market Cap Under 50 Million

Advanced Cell Technology (ACTC.PK) = Current Price: $0.13; Up 4%
Athersys Inc. (ATHX) = Current Price: $0.56; Down -18%
Brainstorm Cell Therapeutics (BCLI.OB) = Current Price: $0.097; Down -3%
Bioheart Inc. (BHRT) = Current Price: Current Price: $.70; Down -11%
Cord Blood America Inc. (CBAI.OB) = Current Price: $0.009; Up 137%
Cyro-Cell Intl (CCEL.OB) = Current Price: $0.60; Up 30%
Neuralstem (CUR) = Current Price: $0.94; Down -34%
International Stem Cell (ISCO.OB) = CurrentPrice: $0.54; Up 86%
LifeStem International (LSTM.OB) = Current Price: $0.009; Up 131%
MultiCell Technologies (MCET.OB) = Current Price: $0.0107; Up 149%
Pluristem Therapeutics (PSTI) = Current Price: $1.55; Up 144%
Stem Cell Therapy Intl (SCII.OB) = Current Price: $0.08; Up 60%
Stem Cell Innovations (SCLL.PK) = Current Price: $0.0095; Up 73%

Possible Catalyst for the Week:

- Be on the lookout for further legislative movement to support President Obama's executive order. It may not cause the stem cell stocks to explode like early last week, but it should keep the sector noteworthy and stock traders happy enough support future gains.
- The market appears to have changed its sentiment (at least temporarily). The fact that the S&P 500 bounced off the 660's and closed above 750 for the week is a very good sign from a technical standpoint. If this is a true bear market rally as many believe, there's possibly another 50 points still on the table until we have some distinctive profit taking. I see no reason why the stem cell stocks won't move with the rest of the market.
- As mentioned before, I expect to see more analyst upgrades since many of these stocks have now retraced and bottomed from their fast rise in late January.
- With the Roche/ Genentech Deal finally over, many experts feel that a lot of Biotech hedge fund money will be transferred to other Biotech names. This could bode well for larger cap stem cell stocks like Celgene (up 15% to 20% last week), StemCells Inc., and Geron Corp.

3 comments:

  1. There are 100's of scientific studies that have been done on AFA and our product StemEnhance. There are also 100's of scientific papers on Adult Stem Cell therapy. I have listed quite a few on my blog that you can read at http://www.phyl247.biz You can also find the book over at Amazon.com that Christian Drapeau wrote. It is called "The Stem Cell Theory of Renewal" Take a look if you would like to talk feel free to email or call me anytime 877-696-8581

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  2. Card, I bought STEM at 2.08 afterhours the Friday when Obama's news broke and again on Monday at 2.00. I'm shocked like everyone else that these didn't take off like they did end of Jan. with the news on GERN. Now I'm made since STEM has tanked. What do you suggest I do and what do you see for STEM in the next few weeks? Thanks

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  3. Sorry for the delay in getting back with you M. Even the larger cap stem cell stocks are getting extremely volatile. Strangely enough, the stems haven't been participating in the rally as expected. However, I see STEM was up almost 16% today. Eventually these things will move again, but right now the market is focusing on other sectors.

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