Stem Cell Penny Stock: Cord Blood is up 57% for the day!
Today's Financial News - Posted January 29, 2009
Thanks to the perception that Congress has opened the free-for-all at the stimulus trough, some highly speculative stem cell plays are soaring. One of them is Monday’s TFN Editor’s Pic, Cord Blood America (OTC:CBAI).
by J. Christoph Amberger
When you’re expecting your first child, you buy into all kinds of nonsense. Back in the day (I’m dating myself!), there was a contraption called the “Pregaphone” you could put on the mother’s extending abdomen and read Dante’s Inferno into the mouthpiece in Italian. Little Pugsley or Britney, the theory went, would then enter the world speaking with a Florentine accent and ask for a cappuccino.
We passed on it. (Still, both my sons have a proclivity to express displeasure in Germanic profanities. Wonder where that comes from…)
I’m sure there are still pregaphones on attics, next to defunct diaper genies.
And that’s the drawback of parent-targeted chatchkies. They’re one-trick ponies and lack the autobilling-in-perpetuity option.
That’s what makes Cord Blood America (OTC:CBAI) different. They offer to cull some blood and stem cells from the umbilical cord of a newborn and store it for as long as the parents are willing to pay. Just in case stem cells are needed to perform a genetic miracle cure.
I had commented snidely on the company last Tuesday: “Stem Cell Mania: Cord Blood is the flavor of the day!”
And yet again, the company’s stem cell penny stock is soaring on expectations that, thanks to Congress stimulus largesse, the company will be high on the hog.
The stock price went from 1.34 cents when I wrote about them two days ago to a whopping 2 cents.
Now, here’s the difficulty: selling any major position in the stock is likely to push the price down in no time flat. And at 2 cents a pop, you’d have to hold at least two-thousand shares to make back your transaction costs: A classic example of the financial industry’s saying “Two out of three ain’t bad”… if the broker and marketmaker are making money, who cares about the investor.
So tread carefully with this kind of stock… invest no more than you’re comfortable to lose in its entirety… and calculate your transaction cost into your reckoning before you take profits.
But if you’re in the market for a solid biotech stock with a high-in-demand product and increasing demand, take a look at our most recent special report!
Next Article: Trading Strategies: Stop Losses and Trailing stops
3 Responses to “Stem Cell Penny Stock: Cord Blood is up 57% for the day!”
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February 9th, 2009 at 5:44 pm
CBAI was never at $1.34 what charts were you looking at??? It went to .04 last Feb.
February 10th, 2009 at 10:16 am
Hello John: It was 1.34 cents, not $1.34.
February 13th, 2009 at 12:55 pm
stem cell will be come the largest stock that the world will ever see john ketnerthe world travler