Speculating on Stem Cells--ASTM and STEM

The price of stem cell stocks spiked upward during the first week of April, 2007. GDT follows two stem cell related stocks: Aastrom Biosciences Inc. and StemCells Inc.

Why the spike?

On 10 April 2007, the U.S. Senate will consider a bill that will "encourage stem cell research on embryos that have naturally lost the ability to develop into fetuses, such as those that have died 'naturally' during fertility treatments." The bill also "supports the creation of a bank of stem cells taken from amniotic fluid and placentas--two recently discovered potential sources." Lastly, the bill would also "prohibit taxpayer money from being spent on the creation of embryos for research purposes."

To date, George W. Bush has vetoed only one bill and that bill was about federal funding for embryonic stem cell research. The Bush veto took place prior to the last round of elections.

   closing prices (30 March 2007):  ASTM $1.38; STEM $2.52
   closing prices (05 April 2007):  ASTM $1.58; STEM $2.94

   trading volumes: Symbol (trailing 3-month avg. volume)
            STEM (1,645,450)           ASTM (1,463,130)
   ====================================================
    5-Apr   3,083,200                  3,232,600
    4-Apr   1,158,600                  1,262,400
    3-Apr   2,795,700                  2,386,700
    2-Apr   5,310,400                  4,295,800
   30-Mar     552,600                    943,300

Finance.Yahoo.com:: ASTM ... STEM

Exercises
  1. During the first week of April, STEM increased by $________ per share.

  2. Using estimation, the average trading volume in ASTM during the first week of April exceeded the trailing three month average volume by __________%.

  3. As of 5 April 2007, ASTM's 52-week high was $1.67. As of ASTM's close on 5 April 2007, the stock is _______% below its 52-week high.

Update::2007.04.11

11 April 2007 Arizona Republic headline on page A3: "Stem cells enable diabetics to forgo insulin shots." {TechNewsWorld.com:: Stem Cell Procedure May Allow Type I Diabetics to Drop Insulin}

11 April 2007 Arizona Republic headline on page A11: "Senate reopens debate on stem-cell research; veto by Bush is expected." Note: There are two stem cell bills currently in the Senate. One of them is basically the same bill that Bush previously vetoed and he is expected to veto it again; however, the bill discussed in this BAB (the HOPE Act) has a chance of being signed.

Update::2007.04.12

The Senate passed a stem cell bill by a a 63-34 vote that President Bush has said he will veto. The Senate passed an alternate stem cell bill 70-28 that the President has said supported "ethically appropriate research."

Update::2007.04.12

Headline: "'Stem Cells ... The Promise of Skin Rejuvenation,' European 'Mystery Cream' Amatokin(R) From Voss Laboratories Finally Hits U.S. Market." The skin cream is only available at Bloomingdale's and it cost about $173 for a one month supply. {Stemcells.NIH.gov:: Regenerative Medicine 2006 [Stem Cell Information]}


Creator: Gerald D. Thurman [gthurman@gmail.com]
Created: 09 April 2007

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