Cord Blood America, Inc. (OTC:CBAI) Spikes on Stock Hideout Mailing
After a few days in a slump, Cord Blood America, Inc. (OTC:CBAI) picked up again, easily adding 38% to its double-zero stock, reaching $0.005. While the company has the viable idea of providing stem cell services, most of the activity in its stock seems to be typical of underpriced, accessible tickers. But the true reason for the climb may be the help of a paid pump, with emails reaching investors on Thursday.
CBAI has the following resources to make a mark on the stem cell industry:
- $369,186 cash
- $1.1 million current assets, $7.3 million total assets
- $3.6 million total current liabilities
- $1.5 million revenues
- $1 million net loss
The preservation of stem cells may mean predictable and stable revenues in years to come, but the company is still indebted. Hopefully, the entity will survive the time horizon usually given for stem cell preservation, which should ideally measure in decades. Meanwhile, the stock movements are much more volatile and responsive to swaying investors’ attentions.
The Stock Hideout newsletter hardly cites the company’s business, instead relying on technical indicators for the stock’s movements. So far CBAI has not advertised its underlying business with press releases, instead attracting readers only with updates on financial filings.
The previous mailer from Stock Hideout is Buyer Group International, Inc. (PINK:BYRG), for which the $4,000 promotion turned sour quite quickly, sinking the stock in days. BYRG slid down 80%, from 5 cents to 1 on extremely high selling volumes. The one-off campaign caused disproportionate movement in the cheap and volatile stock.
In the case of up and coming underpriced tickers, it is best to estimate your own preferable time frame and your potential to absorb losses before committing to a ticker hyped in an email. The next few days will show if CBAI will manage a further climb or will turn tides to another valley.