StemCells Inc (NASDAQ:STEM) has had a long and tough year. The stock was trading in the $11 range at the beginning of the year and is currently trading at $2.50, a loss of 77%.
But the short-term history (6 mos to 1 yr) isn’t the story here… It’s the immediate term (6 weeks) and how this stock has managed to set a floor of $2 to $2.50 in the last five weeks and stay essentially flat: water seeks its own level.
In August the Company was given initial coverage by Roth Capital with a ‘Buy’ rating. I too think the stock is worthy of some serious consideration especially after it’s held its ground for so long. Like all bio-pharmaceutical companies, StemCells Inc (NASDAQ:STEM) is a High Risk High Reward Long-Term play and it has a very impressive pipeline of “Important” drugs which is one of the reasons I think there are so few short sellers of the stock: 2.49%.
As trials proceed with the Company’s HuCNS-SC cells, which is in Phase I/II clinical trial for the treatment of chronic spinal cord injury and in Phase I clinical trials for the treatment of Pelizeaus-Merzbacher Disease, a fatal myelination disorder in the brain, good news will push the shares higher. HuCNS-SC cells also identify and develop human liver engrafting cells for a range of liver diseases.
The global market for spinal cord, brain, and liver treatments is massive.
In late July the Company posted a Q2 ’11 $4 million loss, -29 cents a share, vs. a Q2 ’10 loss of $4.6 million, -38 cents a share; so things are getting better…
Earlier this month, StemCells Inc (NASDAQ:STEM) said the California Institute of Regenerative Medicine had approved the Company's application for a "Disease Team Therapy Development Planning Award." The grant, totaling approximately $100,000, will help fund the Company's plans to develop its proprietary human neural stem cell product, HuCNS-SC cells, in Alzheimer's disease. Like i said, "Important."
I haven’t, don’t, and do not intend on holding any of the companies mentioned in this article.