Stem Cell Stocks and a New Stem Cell Bill

Stem cell stocks moved up on 4 January 2007 thanks to a new bill House Democrats are proposing that will expand the "types of stem cell research that can be funded by the government."

Palo Alto, CA-based StemCells Inc. (STEM) moved up 16.92% closing at $3.11. Trading volume was 7.6 million versus a three-month trailing average of 2.0 million.

Ann Arbor, MI-based Aastrom Biosciences Inc. (ASTM) moved up 12.1% closing at $1.39. Tradiing volume was 5.75 million versus a three-month trailing average of 2.32 million.

To date, President George W. Bush has vetoed only one bill put forth by Congress and it was related to stem cell research. Bush will probably veto a second stem cell bill, but this time the "100-member Senate is believed to have enough support to overturn his veto with a two-thirds majority vote, though the 435-member House would have a more difficult time getting the necessary votes."

Exercises
  1. In the Senate, it would take _______ votes to override a presidential veto.

  2. In the House, it would take _______ votes to override a presidential veto.

  3. Excluding transaction fees, it would cost Edith Foogoofoo $_________ to purchase 100 STEM shares and 300 ASTM shares.

Update::2007.01.12

The House of Representatives passed a embryonic stem cell related bill with a "253-174 vote -- short of the two-thirds margin needed to overturn a presidential veto." The bill now goes to the Senate.

Stem cells stocks, which spiked upward prior to the vote, fell after the vote.

         1/12/2007                                        1/8/2007
   symbol  close    ------change------   ---volume----      close
   ===================================================================
   STEM    $3.04    down $0.32 (9.25%)   5.8M vs. 2.7M      $3.52
   ASTM    $1.37    down $0.09 (6.16%)   3.9M vs. 2.6M      $1.58

Creator: Gerald D. Thurman [gthurman@gmail.com]
Created: 05 January 2007

Creative Commons License
This work is licensed under a Creative Commons License.