Still - and again - trading for under ten cents, it's worth keeping shares of Advanced Cell Technology (ACTC) on the radar. The trading history of this stock has demonstrated to us that buys below the dime level eventually turn into decent trades, while still holding the potential to materialize into long term gains, too, as the clinical trials develop.
Discounted as just another "penny stock" to many, ACT was launched into the spotlight a while back when the FDA made the relatively tiny company only the second to receive an approval to conduct trials based on stem cell research. Geron (GERN) had been the first, but that company has since put its stem cell treatment for spinal cord injuries on hold in order to concentrate resources towards other pipeline candidates, which makes Advanced Cell the arguable leader in a potentially revolutionary medical field.
Advanced Cell Tech is advancing its retinal pigment epithelium (RPE) line through the clinical phase to treat conditions of severe vision loss, to include age-related macular degeneration (dry (AMD) and Starargardt's Macular Dystrophy. Initial results have been promising and the company released news last week that reaffirms the early positive results.
On Monday of last week ACT announced that a "Data and Safety Monitoring Board (DSMB), an independent group of medical experts closely monitoring the company’s three ongoing clinical trials, has authorized the company to move forward with enrollment and treatment of additional patients in its clinical trial for dry age-related macular degeneration (dry AMD)."
The authorization to move forward with a higher dosage is viewed as a nice, early validation of the potential of the company's technology.
Just a few days after releasing that report, ACT follwed-up with an announcement that it had treated a second patient - the first at a higher dosage - in its Stargardt’s Macular Dystrophy trial.
Although many potential investors are probably driven away from ACTC because of its OTCBB "penny" status, that won't be the case for long. With the resolution of a lawsuit having cleared some dead weight form the company's stock, plans were free to move forward to conduct a reverse stock split that could boost the company's stock to levels more attractive to the more conservative investors - and to levels where funds and institutional investors may start to take notice.
It's also been speculated that a move to a larger trading exchange, such as the Nasdaq, will accompany any reverse split, another key move that would allow for a much more solid and committed investor base.
When dealing with the speculative biotech and developing pharma sector, it's often a wise idea, in my opinion, to play with some trading shares while also building a base for the long term. ACTC shares have offered numerous opportunities over the past couple of years to have played some nice trades and the long term potential of the company only grows that much more with each positive update from the clinical trials.
Most stocks drop after reverse splits are conducted, so that's a note to keep in the back of the mind, but this company could end up becoming a transformational game changer, if it's not bought out first.
Disclosure: No position, but looking to get back in.
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