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ACTC: The new year has maintained the recent volatility of Advanced Cell Technology, with shares bouncing all over the place betweent fourteen and twenty six cents over the past few trading days.


After ending 2010 on a high note after the FDA approved the commencement of ACT's trial for Stargardt's macular dystrophy, the company opened the new year with news that the FDA has given the company permission to carry on with a second clinical trial testing the RPE stem cell line, this one for the treatment of macular degeneration, a potential mutli-billion dollar market.

Advanced Cell Tech is also in a fairly strong financial position, having recently received a funding commitment for up to $25 million and expects to end 2011 still virtually debt-free with $15 million in cash. That said, it's yet to be seen how much cash the company will need in the future to run the products through trials and to market - although I still believe that a major partnership or acquisition could materialize.

ACT's recent move from a nickel to the mid-twenties was rapid, and while the pipeline holds significant potential, there's still a long way between now and FDA approval, so expecting additional gains that would approach the percentages of the gains already realized would be asking a bit much, in my opinion, at least in the immediate future.

Long term, however, ACTC is as good a stem cell pick as any.

Disclosure: Long ACTC.

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