International Stem Cell Corp. (OTC:ISCO) Continues PR-Fueled Climb
Another stem cell wonder has appeared among the most actively traded small caps for Tuesday. International Stem Cell Corp. (OTC:ISCO) added more than 27% to its stock price, getting into another upward swing on promises of future business success with biotechnologies. 
The company recently announced an even more developed trial for its therapies, but another reason for the stock’s activity is a recent promotional mailing that tripled volumes. The Tip.us email was sent for no fee and is a one-time affair on January 14th, but its effect lasted for several days. Meanwhile, ISCO touted its success with news of its developing technologies. 
International Stem Cell Corp. is a generally well-heeled corporation, although the usual long development stage takes its toll on the finances. As of last year, the company holds the following financial strengths and weaknesses:
- $2.38 million cash
- $1.9 million current liabilities
- $2 million net loss on $1.18 million revenues
With a relatively solid track record, ISCO may have been selected by the pumpers as a way to boost their portfolio of past success stories. Trading at 35 cents, ISCO is an accessible position with some longer-term prospects. ISCO was mentioned among other stocks by Market Wrap Daily, another professional promoter, in December.
Interest in ISCO may have spiked also due to a recent 8-K filing containing information material to the company’s business development, but also a red flag for insider transactions. The company sold stock at 20 cents to the company’s co-chairman Dr. Andrew Semechkin and the CEO Dr. Simon Craw. Outside the cash injection that could benefit the company’s research, such a transaction at below-market prices threatens to depress stock price. ISCO has a free float of 89 million shares with a current market cap of $30 million.
In addition to the cheap stock, the directors also received a warrant for 5 million shares, exercisable at 20 cents per share. Only time will tell how these transactions will affect the ISCO graph.
Market Daily Wrap touted ISCO along with another biotechnological promise, Advanced Cell Technology, Inc. (OTC:ACTC). The ticker, a long-term striver, peaked in December and lost some of the positions since then. In the case of promising biotechnological companies, it is best to estimate your level of acceptable risk and have in mind the contingencies of a developing operation.
