TFN Editor’s PIC: A micro cap with macro potential (STEM)
Today's Financial News - Posted October 6, 2008
This biotech could be on the verge of breaking out. And that would mean big gains for those that get in now.
by Laura Cadden, TodaysFinancialNews.com
Baltimore — (TFN): With a market cap of below $71 million, StemCells Inc. (NASDAQ:STEM) has just received a $305,000 grant from the National Institute of Diabetes and Digestive and Kidney Diseases of the NIH to support its research to see if the company’s proprietary human liver engrafting cells (hLEC) can be made resistant to the hepatisis C virus. It is estimated that worldwide, between 150 to 200 million people are infected with the potentially fatal disease.
StemCells Inc. focuses on the research, development and commercialization of cell-based therapeutics related to diseases of the liver and central nervous system.
The company has another candidate currently in a Phase I clinical trial for the treatment of neuronal ceroid lipofuscinosis (NCL) that they expect to complete in early 2009. The patients are injected with stem cells designed to stimulate the production of an enzyme they are lacking. Also known as Batten disease, this blessedly rare disorder of the nervous system affects young children and is fatal.
Timing is everything
The announcment of the latest grant is promising for this micro cap, but what makes this the time to buy is the evolving political climate.
Companies like StemCells Inc. have been waiting for the opportunity to work with embryonic stem cells. Once they get the go-ahead, its hard to say just what they could acheive.
With seemingly endless potential, both presidential candidates supporting stem cell research and a Demcratic majority in Congress, this stock has good long-term potential.
If shorter-term gains are more your style, the stock price should see a nice bump right after the elections.
I recommend you buy shares of StemCells Inc. (NASDAQ:STEM) at or under $0.90.
UPDATE: Lock in gains on StemCells, Inc. (STEM)
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***Watch Laura Cadden’s latest video, The Best Way to Play Volatility with guest expert, Karim Rahemtulla.
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October 7th, 2008 at 6:34 pm
Thanks for a infomative article. The recommendation sounds great.