Amarantus Bioscience, Inc. (OTC:AMBS) Goes Through the Roof

Yesterday Amarantus Bioscience, Inc. (OTC:AMBS) shot up 30%, generating millions of dollar volume and landing the top spot among the most heavily traded OTC companies. The stock seems to have won the trust of traders and keeps moving up. What will this all boil down to in the end?

We have followed AMBS for some time now, since their rise and fall in November, when the stock was propped by pump email campaigns. However the pumps came to an end in early December and since then AMBS has mostly managed to keep moving up on its own, barring a 30% downward hiccup on Dec. 27 when a record volume of nearly 59 million shares changed hands in what looked like heavy dumping.

Still, AMBS kept climbing in double-digit percentages in the following days, to arrive at its yesterday’s close of $0.17 per share. While it seems people are very eager to buy AMBS stock, the company has done little to really bolster investor confidence lately. The testing results from the MJJF Foundation grant that were supposed to be announced in December were delayed by the company to January 8, 2013 so that the announcement can coincide with the company’s presentation at the OneMedForum. AMBS seem to try to make people believe they have something really big, which may or may not be the case. The fact that the MJJF Foundation refused to further fund research of AMBS‘s protein makes a strong case for the latter.

If the announcement is indeed groundbreaking and is backed up by the various experts and academics that AMBS is supposedly currently querying, this may even lead to a third party financing their operations. As things stand right now the company has no means of financing the development of its product and despite the claims of great early promise, large investors are not exactly lining up in front of AMBS headquarters. AMBS also issued a very large number of convertible notes to a large number of entities and those almost always feature conversion prices that are a wild discount from the current high price.

The combination of these factors may offer a more sober perspective on things, against the general excitement around the stock’s movement. AMBS may be in a position to do some great things, both for science and public health, as well as for its investors. The thing is, it is still too early to tell if that’s the case or not.