RegMed Daily Dialogue, 7/6/11, giving up gains if any, volatility continues
US equities are trading higher after recovering from earlier worries. US stock indexes fluctuated on Wednesday as investors considered a weak read on the services sector, China’s latest interest-rate increase and a downgrade of Portugal’s credit rating. Equity futures were trading below fair value in a continuation of yesterday’s weak close. International banks and insurers meet again to decide on a plan for the private sector to contribute to Greece’s bailout effort. China raised interest rates by 25 basis points after the Chinese market close.
Regenerative medicine/stem cell universe is “DEFENSIVE” on Wednesday (7/6/11) … The NASDAQ is UP +11.97 (0.42%) to 2,837.74 and moving higher. The Dow is UP +70.80 (+0.56%) to 12,640.67.
Aastrom (ASTM), Athersys (ATHX), BioMimetic (BMTI), International Stem Cell (ISCOE), Geron (GERN), StemCells (STEMD), Pluristem (PSTI) are up …
Today’s Sermon: A GOOD time to cleanup ANY corporate matters. July – August is spotty for news – so get out the chafe and deflect any forthcoming missile shots … Visibility is a CONCERN.
What’s driving the regenerative medicine/stem cell market – NO NEWS!
StemCells (STEMD) 1-for-10 reverse stock split: While the reverse stock split does not change the intrinsic value of STEMD, the split should broaden the appeal to investors favoring stocks trading above a $1.00 a share. Upon the effectiveness of the reverse stock split, each 10 shares of the issued and outstanding common stock will be automatically converted into 1 issued and outstanding share of common stock. The bottom line, the reverse stock split will reduce the number of shares outstanding from approximately 137M to approximately 13.8M. Concurrent with the reverse stock split, STEMD will reduce its authorized number of common shares to 75M. The number of shares available under the equity-based plans will also be proportionately reduced. The trading symbol of “STEM” will not change as a result of the reverse stock split, although it is expected that NASDAQ will append a “D” to the ticker symbol for approximately 20 trading days following the effective date to indicate the completion of the reserve stock split. In addition, the common stock will trade under a new CUSIP number, 85857R204, effective as of 7/6/11. A good move by Marty McGlynn but, he will need a number of catalysts going forward to migrate any broad selling. Stem(D) is trading at $4.66, up $0.24 or 5.44% on volume of 14,316.