Any biotech penny stock experts? (fund, calls, cash, investor)

[howard555]

Speculative biotech stocks, and these types of stock carry an enormous amount of risk, and you can lose a substantial amount of money.

The case for Advanced Cell Technology (ACTC.OB)

$500 gets you 5000 shares. (10 cents each)
Look at it on the bright side. The downside risk is only 10 cents.

Advanced Cell Technology is a biotechnology company which is focuses on the development and commercialization of stem cell technology in the field of regenerative medicine. Within the company's products, one will find the first risk in that stem cells are a new untried technology. Of course one must also mention that the usage of stem cells often has a negative connotation across lots of political and religious landscapes. Finally, we find ACTC facing even more stock dilution in response to past financial dealings. Recently ACTC entered into settlement agreements with 40 holders of certain warrants and debentures. According to the agreements, ACTC will issue approximately 240.5 million new shares to this group of holders in exchange for a mutual two-way release of any current and/or future claims. In order to meet these terms of the settlement agreements, ACTC also filed a preliminary proxy to increase the authorized shares of the company.
That is lots of risk, and at first glance it would deter any investor from spending a dime on this company.
So, spending a dime. That ironically is the stock price.

For those willing to look deeper into the positive aspects of the company, they will see the outsized possibilities that exist. ACTC has a phase 1/2 clinical trials for Stargardt's macular dystrophy and dry age-related macular degeneration being conducted in the U.S., as well as clearance to begin in Europe. The interesting thing is after only two dosing the clinical results should be published in a top peer-reviewed medical journal, which is a very interesting turn of events for only two patients. The company, in their most recent conference call, stated that they are talking with three groups of Chinese partners. These partners may get an equity participation in the future sale of these stem cells in China, in exchange for the funding of the current trial. Finally, ACTC has patents filed across India, China, U.S., and Europe for the protection of their technology. Add to this, one must also consider the collaborative agreement with Roslin Cells LTD of Scotland, where both companies will establish a bank of Good Manufacturing Practice grade human embryonic stem cell (hESC) lines for future use and sales.
ACTC is in the beginning stages of setting up their global network with patents, agreements, and potential joint ventures. Waiting in the wings are other unfunded stem cell therapies for chronic heart failure, advanced cardiac disease, and cardiovascular disease. The key for ACTC is the macular degeneration trials. If they are as successful as the company has suggested, then the ACTC will fulfill an unmet medical need in a market worth over $30 billion in the U.S. Add the rest of the world and that number is much larger. Now take these new cash flows and apply them to the unfunded studies above and you have the makings of a monster. If the macular degeneration trials were to fail, then the company and the stock price will come crashing down like a house of cards. ACTC truly represents the get rich or die trying philosophy.

The philosophy of getting rich or die trying really does not lend itself to the investing world. It is actually more likely to fall on the gambling side of the equation. MAD MONEY!

As the investing world enters 2012, the picture is about to get much clearer for ACTC.

2 Biotechs Hopefully To Get Rich Or Die Trying - Seeking Alpha

[TechRider]

Originally Posted by howard555

Speculative biotech stocks, and these types of stock carry an enormous amount of risk, and you can lose a substantial amount of money.

The case for Advanced Cell Technology (ACTC.OB)

$500 gets you 5000 shares. (10 cents each)
Look at it on the bright side. The downside risk is only 10 cents.

Advanced Cell Technology is a biotechnology company which is focuses on the development and commercialization of stem cell technology in the field of regenerative medicine. Within the company's products, one will find the first risk in that stem cells are a new untried technology. Of course one must also mention that the usage of stem cells often has a negative connotation across lots of political and religious landscapes. Finally, we find ACTC facing even more stock dilution in response to past financial dealings. Recently ACTC entered into settlement agreements with 40 holders of certain warrants and debentures. According to the agreements, ACTC will issue approximately 240.5 million new shares to this group of holders in exchange for a mutual two-way release of any current and/or future claims. In order to meet these terms of the settlement agreements, ACTC also filed a preliminary proxy to increase the authorized shares of the company.
That is lots of risk, and at first glance it would deter any investor from spending a dime on this company.
So, spending a dime. That ironically is the stock price.

For those willing to look deeper into the positive aspects of the company, they will see the outsized possibilities that exist. ACTC has a phase 1/2 clinical trials for Stargardt's macular dystrophy and dry age-related macular degeneration being conducted in the U.S., as well as clearance to begin in Europe. The interesting thing is after only two dosing the clinical results should be published in a top peer-reviewed medical journal, which is a very interesting turn of events for only two patients. The company, in their most recent conference call, stated that they are talking with three groups of Chinese partners. These partners may get an equity participation in the future sale of these stem cells in China, in exchange for the funding of the current trial. Finally, ACTC has patents filed across India, China, U.S., and Europe for the protection of their technology. Add to this, one must also consider the collaborative agreement with Roslin Cells LTD of Scotland, where both companies will establish a bank of Good Manufacturing Practice grade human embryonic stem cell (hESC) lines for future use and sales.
ACTC is in the beginning stages of setting up their global network with patents, agreements, and potential joint ventures. Waiting in the wings are other unfunded stem cell therapies for chronic heart failure, advanced cardiac disease, and cardiovascular disease. The key for ACTC is the macular degeneration trials. If they are as successful as the company has suggested, then the ACTC will fulfill an unmet medical need in a market worth over $30 billion in the U.S. Add the rest of the world and that number is much larger. Now take these new cash flows and apply them to the unfunded studies above and you have the makings of a monster. If the macular degeneration trials were to fail, then the company and the stock price will come crashing down like a house of cards. ACTC truly represents the get rich or die trying philosophy.

The philosophy of getting rich or die trying really does not lend itself to the investing world. It is actually more likely to fall on the gambling side of the equation. MAD MONEY!

As the investing world enters 2012, the picture is about to get much clearer for ACTC.

2 Biotechs Hopefully To Get Rich Or Die Trying - Seeking Alpha

It looks like the new shares will be issued this month. So, if you wait, you might get this stock for less than a dime when the stock is diluted by another 240 million

[howard555]

Originally Posted by TechRider

It looks like the new shares will be issued this month. So, if you wait, you might get this stock for less than a dime when the stock is diluted by another 240 million

True, will watch the news closely.

They have 1.6 billion shares already.
That spells a very large reverse split, so I did not do my homework.
High risk with so many shares. Most reverse splits do not work.

Better to look at KERX, only 72 million shares.

I own HGSI and AMLN, already waiting on FDA news and partners.

[Currency Pair Crocodile]

Howard, I can do this. 500$ is nothing. Do you know more about this company.

[TechRider]

Originally Posted by howard555

True, will watch the news closely.

They have 1.6 billion shares already.
That spells a very large reverse split, so I did not do my homework.
High risk with so many shares. Most reverse splits do not work.

Better to look at KERX, only 72 million shares.

I own HGSI and AMLN, already waiting on FDA news and partners.

Couple of years ago I got burned by reverse splits.

But again, if you pick carefully, these are really free riders

[TechRider]

I looked at HGSI before, it looked like a good prospect. But never bought any.

I think, I will buy some options on this one.

[howard555]

Originally Posted by TechRider

I looked at HGSI before, it looked like a good prospect. But never bought any.

I think, I will buy some options on this one.

HGSI up over 9% today.
Not seeing any news. The options are fairly expensive. I sold January $9.00 calls previously.


Antlered Chamataka:
On ACTC, the article above, is step one in researching the company.
The number of outstanding shares is a big negative for me.

[Currency Pair Crocodile]

Originally Posted by howard555

HGSI up over 9% today.
Not seeing any news. The options are fairly expensive. I sold January $9.00 calls previously.


Antlered Chamataka:
On ACTC, the article above, is step one in researching the company.
The number of outstanding shares is a big negative for me.

Howard, the risk is understandable. It's obvious. But I've been itching to do something unconventional. Say if it ever hits 5 cents, 500 bucks is like 10K shares and I won't really sweat it if it gets liquidated from there.

However, if it comes to 15 cents ever, that money's been tripled.

[howard555]

Originally Posted by Antlered Chamataka

Howard, I can do this. 500$ is nothing.

Yes, you have the stomach to risk such amounts. As do I.
Home runs do happen.

There are investors who can take the financial risk, but do not have the philosophy to do it, even at 1 cent per share. It's too scary for them.

[TechRider]

Originally Posted by hotstockpicks

it will be true that Penny stocks investing is kind of safer choice for those who don’t dare to take risks or simply have a short budget plan but are still attracted by what stock can bring to them.

hmm..I am not sure if, "Penny Stocks" and "investing" can be combined together.

IMHO, they are just plays!

There may be some exceptions, but very rare.