Amarantus Biosciences, Inc. (OTC:AMBS) Returns with Moving Pennies Mention

A long-embattled ticker, Amarantus Biosciences, Inc. (OTC:AMBS) , is charting a small rising trend in the past days, adding nearly a third to its price on healthy volumes, nearing 8 cents. The success of this ticker hinges on positive news about its bioscience research, but the latest climb was most probably caused by an email distribution, stating that AMBS was ready for a jump, high up from the current low levels.

Unfortunately, AMBS is late with its yearly report, so we cannot easily see if its research efforts are paying off, but results are expected sooner than later. So far, the company shows the typical picture of a long-term researcher with few streams of potential revenues. It latest quarterly results reveal:

• $580 cash

• $304,390 current assets

• $4.6 million total current liabilities

• Zero marked revenues for Q3 of 2012, $35,280 for Q2

• $564,378 net loss

The company has accumulated more than $9 million in losses since its inception, and fills the holes by loan financing, which in the end converts to stocks, causing dilution. Also, the research on neurodegenerative diseases, while promising, is going a bit too slow, causing a burst of enthusiasm, but also deep corrections when investors decide AMBS is taking too long to turn out bigger profits. AMBS has more than 224 million shares outstanding, a billion shares authorized. There has been insider purchasing of stocks at 6 to 9 cents, but so far the amounts are miniscule and would not have an outsized effect if separate investors decide to sell.

In the shorter term, AMBS got its latest boost from a profile in a promotional email from April 4th. Moving Pennies mentioned a few recently active tickers, but AMBS received the better part of the message. The compensation for this advertisement was $3,000. Along with the email, AMBS was active with press releases, adding fresh developments to its business. The company hired one Adam J. Simon, Ph.D to its board of advisers, and announced a change in its business structure, forming two subsidiary units, one for diagnostic technologies and one devoted to therapeutics.

The first months of 2013 were successful for pharmaceutical tickers, boosted by expected returns or breakthroughs in research. Among the winners was Titan Pharmaceuticals, Inc. (OTC:TTNP), which slumped only after the FDA released a conflicting opinion on its proposed therapy. The stock is now trying a recovery, awaiting the final verdict of the agency on April 30th.

Be aware that the movements of AMBS will be disproportionate from its real business potential, and plan your time horizon accordingly. Decide for yourself if you could afford sudden losses before following the advice of a paid promoter.