BioLife Solutions, Inc. (OTCMKTS:BLFS) Comes to Front Row with Q2 Results

Biotech stocks almost always promise a thrill, and now BioLife Solutions, Inc. (OTCMKTS:BLFS) is the new hot trend, growing on still modest dollar volumes of around $187,000. The stock added more than 18% on Wednesday to stand at 87 cents, and with active PR may manage to turn into a constant spot of interest.

When stem cells are spoken of in the penny stock context, this may be a red flag, but it is relatively easy to discern the more high quality companies which are achieving actual revenues. The newest financial report for BLFS shows:

• $76,205 cash

• $1.8 million total current assets

• $1.4 million total current liabilities

• $2.33 million product sales

• $82,844 net loss

The company has improved earnings and narrowed the net loss. And the activity of the stock has always been relatively robust. But the last few months came with even higher trading volumes following a pickup in PR messages which strengthened consumer interest.

Still, biotech companies sometimes turn into household names and engender irrational loyalty by investors, reaching very robust stock prices, only to drop precipitously at first hint of bad news. In part, the growth of BLFS may be overshooting the company’s true activity.

BLFS comes in just in time to pick up the slack from the fallout of Advanced Cell Technology, Inc. (OTCBB:ACTC), one of the more solid stem cell companies, and a long-term darling, holding well in the past months. But the stock lost steam and now slowly sinks below 10 cents on thin trading volumes.

Time will tell if BLFS is ready to keep the current high levels. A promotion could help with general interest, but so far BLFS is a great unknown. Currently, the company is capped above $60 million, with a bit more than 70 million shares outstanding. And BLFS has chosen the cash-cow part of the stem cell business. Instead of chasing after patented cures, the company provides the technologies and solutions for third parties to deliver their treatments.

Despite the back record, BLFS is prone to the same dangers as other tickers that rise suddenly. At the moment, SafeStitch Medical, Inc. (OTCMKTS:SFES) is enjoying the upswing on a series of promotional emails and press releases. But once investors have waited too much for the much-touted nanotechnology to revolutionize the field of medicine, the decline from $1.35 may be rapid.

BLFS is still a relatively low-volume play, and may sink back to relative inactivity. Still, if you believe this is your stock, stay away from investing sums that you cannot afford to a significant correction.