Biotech Promises for 2013 Boost Amarantus Biosciences, Inc. (OTC:AMBS)
Amarantus Biosciences, Inc. (OTC:AMBS) is one of the bigger climbers at the end of the year, adding more than 40% on Friday’s trading. The stock is making investors jittery, as it is on an upward trend with healthy buying volume, yet shows a possibility for deep daily losses.
The AMBS stock showed up in several small-budget mailings in Devember, as our database records, and its latest climbs follow several PR messages giving hopes for a breakthrough. Pharmaceutical companies rely strongly on approvals and marketing success and their stock moves according to their future development potential.
AMBS, a typically volatile pick, may offer some rewards, while standing on the following assets and liabilities, as a development stage company:
- $580 cash
- $725,033 assets
- $4.6 million liabilities
- No revenues
- $509,505 operating loss
Development-stage pharmaceutical companies may surprise with a new drug or therapy, yet AMBS works in its labs without securing financing to ease the bringing of an invention to market. This insecurity brought down the company, as we predicted, in its last pump in May, when it promised new drugs and therapies, but brought nothing to market.
Added to this, marketing a new drug is not only expensive, but time-consuming and insecure, and while AMBS may provide short-term success with rapid climbs, the underlying business is still not on a certain development track. At the end of the year, the ticker was shortly promoted by Cash Money Play for $7500, and even briefly mentioned by Awesome Penny Stocks.
One of the picks of Cash Money Play, Great China Mania Holdings, Inc (OTC:GMEC) showed a marked spike on December 11, at the start of the promotion, and offers a chance to trade quickly for a dramatic daily gain, but also quickly corrects on selling. In the case of biotech companies and other promoted stocks, it is important to estimate the real chance the company has to succeed and not to have illusions that discoveries can carry a ticker upward in the longer term.