Intellicell Biosciences, Inc. (OTCMKTS:SVFC) Revived on Exuberant Buying
Intellicell Biosciences, Inc. (OTCMKTS:SVFC) made a commotion at the end of last week, but showed little indication that this could be more than a one-off event. Now, SVFC showed a successful Monday, growing by 131% to $0.0074, on dollar volumes of above $2.13 million. SVFC kicked into activity at the beginning of the year, riding a free promotional email from Stock Mister. But the latest peak in buying is not explained by an emailed promotion, though investors’ forums are showing huge optimism that the company may start a run on general momentum. 
Now, SVFC is rather close to the penny levels, which may add to the upward potential. It is a matter of investor confidence whether the buying will continue with the same exuberance that it had on the first trading day of the shortened week.
SVFC is a rare reminder of a once booming sector on the OTC markets- stem cell companies. Among those tickers, several held cult status, and many newcomers used the trend to add value in a short-termed bonanza. SVFC is among the companies that are raising a bit too many red flags, showing the following worrying financials:
- cash: $0
- current assets: $182 thousand
- current liabilities: $10.5 million
- no quarterly revenue
- net loss: $1.8 million
Stem cells are still too far out in terms of real revenues, and companies that have earnings also have a business of lab supplies and cooling technology. Stem cells in themselves have not been made into a viable and widely accepted medical treatment.
The bellwether in this sector isAdvanced Cell Technology, Inc. (OTCMKTS:ACTC), founded by controversial scientist Dr. Robert Lanza. The ticker had its day a few months back, even boosted by promoters, but went on to drift between 6 and 7 cents.
Easton Pharmaceuticals, Inc. (OTCMKTS:EAPH) jumped ships, moving from tentative stem cell research into medical marijuana, and thus managed to boost its levels ten times at the peak of buying, bursting out of double-zero positions and toward two cents. Since then, EAPH moved down close below the penny levels.
If you still like SVFC, keep in mind that volumes and interest may be overturned very soon, as the buying of the last two days was an anomaly. A continuing email campaign could work to boost the price, but do not rely on any factors that could improve the positions, and avoid over-investing in such a volatile stock.
