There has been a lot of hoopla over stem cells recently. R&D development is on the upswing given that 13 new embyonic stem cell lines were just approved by the federal government (in addition to the 21 approved previously under the "Bush" era). The "Obama" era even though it will only last for four years will given rise to huge advances in this field (and hopefully large investment returns)
At this time, there is only one company generating actual earnings. CCEL's business model is premised upon cryogenically storing umbilical stem cells. Regardless of how the stem cell research business plays out relative to adult versus embyonic cells, CCEL will be a winner since it will be a beneficiary of all of the ongoing stem cell R&D efforts.
CCEL is trading at a fair market value of about $1.85/sh. I expect that CCEL could be trading at or about $2.50/sh in four to six months. So, this is a longer term trade (with a > 30% upside). Trading volume is low, so don't look for a high turn over. And you may have to literally wait hours if you place a trade for more than 2500 shares.
I own the stock (but was unable to add it to P&P due to its low market capitalization).
There are other higher risk R&D stem cell stocks such as ASTM and STEM. There has been a considerable amount of trading volume this past week. At the moment, the market is catching up to supporting the price structures for these stocks. STEM has outstanding options with a strike price of $1.50, so I expect the stock will rise to this level soon. 12/04/09 close was $1.35.
The upside for both of these stocks is in the new government funding support. This is the time to get in prior to "take off," if you have some leftover play money.
I own both of these stocks.
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December 4, 2009
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