Advanced Cell Technology, Inc. (OTCMKTS:ACTC) Continues Its Red Streak
For a while it appeared that Advanced Cell Technology, Inc. (OTCMKTS:ACTC) may stabilize, or even turn green in Friday’s early trading, but about an hour in the session, it became clear that a bounce was unlikely. By the end of the day, the company had fallen by another 4.60%, which means that it has lost about a quarter of its market value since its peak on June 5.
This most recent crash began on June 6, when ACTC announced that it was forced to issue an enormous amount of shares. This was done in order to avoid a lawsuit that the company, in the words of Ted Miles, president and COO of ACTC, “had substantial risk of losing”. Investors were not happy with the dilution that got dumped on their heads, and their displeasure is still pushing the ticker slowly down to the bottom of the charts.
Admittedly, ACTC did not have any real choice in the matter – being bogged down in old legal issues is the one place it certainly doesn’t want to be at this stage. Unpleasant as it was, this move was necessary in order for ACTC to move forward, declared Mr. Miles in the company’s conference call on June 9. And with that this problem out of the way, the time has come to put ACTC‘s bigger and more ambitious plans into motion.
Plans such as a reverse split and uplisting to another market, as well as raising more capital to fund the company’s research. Granted, said research looks promising and appears to be advancing at its own pace, but despite all the results that it has already shown, it is still unclear how much longer it will take for the science to bare fruit, not to mention how much more will it take for the company’s work to be marketed.
Presently, ACTC seems to be managed by capable professionals and appears to have a very strong board of directors. Sadly, this alone does not necessarily mean that it can and will create value for its shareholders in the foreseeable future.
By all accounts, ACTC seems to have its fair share of red flags, but unlike many other biotech companies on the OTC, it looks like it may actually be able to achieve something, if given enough time and an opportunity to shine. Still, its market cap of $148 million seems a somewhat overblown, especially if you consider its current financials and horrible share structure.
Another penny stock that was slowly falling despite its high trade volumes on Friday is OncoSec Medical, Inc. (OTCMKTS:ONCS), who is also a development stage medical company and appears to have potential, but is yet to realize it.