Is It Safe, Yet for Stem Cell Equities
The financial markets have thoroughly depreciated the stem cell universe but, many struggling stem cell companies are getting second, third and fourth chances to viability and stock appreciation. Yet, many institutional investors question … is it too soon to call for an … ‘all clear’.
The fundamental idea in stem cell (company) investment is the relationship between clinical risk, stock movements, viability and sustainability never forgetting cash is king and the regulatory process is the joker!
- The greater the potential return one might seek, the greater the risk … one normally … assumes,
- Lately, the lack of a trading market and news driven sector influences reflect the pricing of this universe,
- While weak demand for a riskier company drives its price lower; its potential return could be higher.
Technically, the notion of risk is independent from the notion of value and as such, sector clinical eventualities have both beneficial and adverse consequences.
- Currently, in today’s market, conviction seems to focus only on the … potential of negative impacts to the value that may arise from a future event.
Risk is also the probability that an investment’s stock performance will always be different than expected; including the possibility of losing some or all of the original investment.
- Stem cell companies should be considered the new proving ground for methods of risk assessment,
- Stem cell companies all … NEED … to constantly raise money to fund operations with the resulting dilution driving DOWN the share pricing,
- Regulatory difficulties interfere with value such as IND approvals for FDA trials as well as clarity to the substance of a potential therapy moving forward … along with the possibility of clinical holds,
- Forget the rolling and current stock pricing,
It is a good time to buy in this depreciated market. Still a … believer … however, do your research; valuation and regulatory initiatives are still the decision … makers and breakers.
