Brainstorm Cell Therapeutics, Inc. (OTCBB:BCLI) Sinks Stock with Below-market Offering

Something gravely disappointed investors in Brainstorm Cell Therapeutics, Inc. (OTCBB:BCLI) as they shed more than 7 million shares, bringing down the ticker to 17 cents from 25 cents a few days back. The reason may be a below-market-price offering at exactly 17 cents, which disappointed investors. Otherwise, BCLI was last promoted in February, and was quite capable of making trends on its own.

BCLI perhaps needs the financing, for which it dilutes its stock base. Pharmaceutical companies are sometimes loaded with negatives, so let’s see if this is a factor for BCLI. The company reveals:

• $1.8 million cash

• $4.3 million total current assets

• $1.2 million total liabilities

• $1 million quarterly loss, $48 million loss for 150 months

BCLI has a long history, as it is easily seen, and the resources to go on. The company employs stem cell technologies, and has actual experience in that, in comparison to fly-by-night penny stock tickers that only use stem cells as a buzzword. BCLI managed to receive “orphan drug” status for its NurOwn therapy, a specialized form of treating patients with stem cells derived from their own bone marrow. This should come with preferences and tax benefits. Along with this, BCLI has earned the attention of the Israeli government, and this deems its work significant.

But the 8-K of August 13th sadly brought the ticker down faster, as BCLI offered more than 23 million shares to its 157 million shares outstanding.

When there are not unusual events, BCLI does not invite much investors, which also means the movements are much less inflated by artificially-created interest. While the stock offers some long-term potential, it is best to be aware about the opportunity of sharp corrections.

But BCLI is above bragging claims that it would change forever the face of modern medicine. Such claims are not rare among hot-moving stocks, but unfortunately, the stories usually have a bad outcome. Arch Therapeutics, Inc. (OTCBB:ARTH) is such a story, spiking to $1.30 on a promotion, only to slide down to 38 cents as days in the red prevailed in the past month.

And Advanced Cell Technology, Inc. (OTCBB:ACTC) seems to be defunct for now, precipitating the slow slide of the past months with a faster divestment, and a sinking to 6 cents. We don’t know when the trend would stop, but the company may have depleted the optimism and an even lower price would be needed to cause new buying.

While BCLI is a typical case of a solid pharmaceutical company, keep in mind those stocks may be suddenly volatile and plan your time horizon and investment size, so you can absorb any shocks less painfully.