Advanced Cell Technology, Inc. (OTCBB:ACTC) Continues Recovery on Stem Cell Hype

The recovery for Advanced Cell Technology, Inc. (OTCBB:ACTC) is small, but show some potential, and at least it stemmed the losses after the long slide of the pharmaceutical company. Now, ACTC attempts to move up between 6 and 7 cents, as it is boosted by a mention with StockRich, plus a press release outlining the general promise of the stem cell technology.

On Wednesday, ACTC added 2% to $0.0612 on buying volumes above $468,000. Still, the ticker is away from the recent peak of 9 cents.

Now, ACTC rides the Japanese drive to legalize more stem cell therapies, boosting its reputation, although the news from the company’s landing page hardly mentions whether ACTC would get a piece of the market.

This very much resembles the empty, preliminary promises of lesser small cap companies that only use the stem cells as a bait for investors. And currently, there is general talk of more liberalized rules for the use of human stem cells, and easier sourcing- that could, hypothetically, benefit ACTC if the company sought a buyout, or just promised to join the medical industry with its own treatment modality.

But even the controversial genius of Chief Scientific Officer Robert Lanza may help where stock prices are relatively low and driven by sentiment. ACTC has been enjoying relatively high volumes and loyalty, as many pharmaceutical stocks do. But this popularity sometimes resembles the popularity of a quack selling panaceas.

And speaking of even more impossible claims, the same Dr. Lanza is the person who recently proposed “a theory of everything”, explaining the secrets of the universe through his understanding of biology. His special brand of science is labeled as “biocentrism”. We still don’t know how cracking the code of the universe would affect the stock market, but so far, we remain cautiously skeptical.

At the same time, Dr. Lanza has taken part in very promising research, including the cloning of endangered animals. More importantly, ACTC hosts research of degenerative eye disease treatment. But without a proper market and a nearer perspective, the company just relies on faith. It seems 2013 did not contain enough faith, as all the ticker has to show is a slow deflation from 10 cents to its current levels. ACTC had a peak back in 2012 at 20 cents.

What happens when faith is gone is really well illustrated by the latest move of Amarantus Bioscience Holdings, Inc. (OTCMKTS:AMBS). The stock now stands at $0.054 after losing 28% on heavy selling.

Even at that small range, stocks have a potential to go down significantly. If you still believe ACTC holds the keys to the universal answers, it is best not to rely on a positive effect for the stock. Choose your investment time horizon well, and do not load up unaffordable amounts of this stock.