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A look at one of the companies |
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ushering in the medical era stem cells. |
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Released on Thursday, December 22, 2011, 8:00 AM ET
Pittsburgh, PA (SpeculatingStocks) -Neostem, Inc. Common Stock (AMEX:NBS) is a very small company with a stock and market capitalization which easily reflects it. Trading at only $0.55 per share (4:00 PM EST, December 21st, 2011), the company is definitely a micro-cap. firm with a total market cap of around $60 million.
As a small firm, it is likely not to have a great amount of income, but the glory of investing in small firms is that they could turn around what is a losing beginning into a wonderful cash cow enterprise. NeoStem is an international bio-pharmaceutical company that focuses on adult stem cell research and applications in the United States.
The company is focusing on using its research teams to develop treatment streams with the cells for cellular therapy programs, and additional areas of interest including storage and manufacturing of the stem cells.
Recently in October of 2011, NeoStem closed a deal with Amorcyte, Inc. to consider a merger, and NeoStem will begin running clinical trials of Amrocyte's AMR-001 product prototype. What does this mean? Well if the company is able to confirm the clinical treatment they will have the ability to promote this product internationally and help begin the transition of the medical era into stem cells.
Recently the company has been trading high, so it might pop down in a short amount of time. This would reflect the potentially overbought status of the stock. As a NeoStem is still in the research and development stage, it does not produce great profits, but it is still relatively stable financially. With a strong amount of financing the company remains afloat with a current ratio at 1.43 and enough cash to cover approximately 76% of its total debts immediately.
Parabolic SARs indicates that NBS has been in a long term gain streak since mid-November, without signs of a reversal. This company would benefit as a long-term asset in your portfolio, with a beta volatility of only 0.65, it is unlikely that the stock will have enough movement to allow skimming from the price's volatility.
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