IntelliCell BioSciences, Inc. (OTCMKTS:SVFC) Gets a Free Pump From Stock Mister

Stock Mister sent us a couple of email alerts on IntelliCell BioSciences, Inc (OTCMKTS:SVFC) on December 27 and December 30. The disclaimer says that the promotional outfit hasn’t been compensated, but even so, Stock Mister’s recommendation did have its effect on the performance.

Last Friday’s session proved to be rather good for SVFC‘s shareholders. The ticker managed to shift around 68 million shares while registering gains of around 35%, but on Monday, the success was even greater. More than 127 million shares changed hands while the price jumped up by a massive 78%. Unfortunately, such disproportionate moves, especially when they are sparked by touting through the email, rarely last long and on Tuesday, SVFC retraced its steps dropping by 23.5% and finishing the day at $0.0026 per share.

On the whole, a typical behavior from a ticker that is put under the promotional spotlight, but the people who are looking for something more than a quick trade are probably wondering if SVFC has even the slimmest of chances of displaying any sort of prolonged run towards the higher end of the charts.

If you ask the company CEO, Dr. Steven Victor, he’ll probably say that it does. He published a letter to the shareholders on December 10 in which he said that he is really pleased with the progress his company is experiencing. The update speaks about things like “competitive advantages“, “improving the balance sheet“, “overcoming obstacles“, “opening new facilities” etc. and if you base your investment decision on Dr. Victor’s words alone, you’ll probably assume that SVFC will very soon be a leader in the regenerative medicine business.

Unfortunately, the chart at the beginning of the article suggests otherwise. In fact, less than a year ago, SVFC was hovering around $0.20 per share whereas right now, it’s struggling with the double-zero levels.

The cause for the devastating performance can be found in the company’s latest 10-Q. Here’s a quick summary of the most important figures as of September 30:

• cash: $0
• current assets: $182 thousand
• current liabilities: $10.5 million
• no quarterly revenue
• net loss: $1.8 million

The negative working capital is absolutely huge and SVFC is losing money hand-over-fist which has resulted in an accumulated deficit of a whopping $44 million.

You’ll find another reason for the atrocious behavior when you take a look at the number of outstanding shares over the last couple of quarters. It took SVFC less than two months to print more than 175 million new shares, nearly tripling the overall count. There is still quite a lot of convertible notes and debentures that can be turned into common stock and a few unsettled lawsuits could put even more pressure on the horrific balance sheet.

SVFC recently decided to increase the number of authorized shares from 500 million to 1.5 billion and with these sort of actions in mind, you really have to ask yourself: “Will Dr. Victor succeed in raising the shareholders’ value?”.

While you’re contemplating the answer, you might want to take a look at this New York Post article which was originally published in 2009. Apparently, Dr. Victor is something of a celebrity, but unfortunately, he’s not too popular among investors’ circles.

SVFC isn’t the only ticker to end 2013 on a negative note. It took mCig Inc (OTCBB:MCIG) less than an hour to wipe out more than 40% of its value, but, perhaps more worryingly,there wasn’t an immediately obvious reason for the drop. Peoplestring Corp (OTCMKTS:PLPE), on the other hand, slipped by nearly a quarter after the management team announced a 1-for-40 reverse stock split.