Therapy Cells, Inc. (OTCMKTS:TCEL) Gains Out of the Blue
For Therapy Cells, Inc. (OTCMKTS:TCEL), two record days of buying may look good- but they also look worrying. The stem cell company gained instantly from double-zero positions into penny levels, all of this without a boost from new emails or PR materials. All of this makes us suspect concerted buying efforts, which sent the ticker up by more than 459% on Tuesday, reaching $0.033, on dollar volumes above $2.82 million. 
What is strange is that there are hardly updates from TCEL, the financial reports are quite old, and the company only retells its old stories of successful stem cell therapies. Nothing in the past years indicates that TCEL is having any progress, and its financials reveal: 
- Zero cash and cash-like assets
- $1 million total current liabilities
- No revenues in 2013, $10,000 in 2012
- $52,000 net loss for the September 30th quarter of 2013
As it is easily seen, TCEL hardly even justifies the $3 million current market cap, though it holds a still reasonable number of shares, 93 million. This also means that TCEL is underpriced enough, and a concerted buying effort could secure enough of a squeeze to bring the price upward as well as it did.
Also, it is hard to tell what TCEL is up to. It claims that it is researching a restorative auto-transplant of cells, and its therapy may emerge soon as a valid therapeutic modality. Also, the company claims that it is a holding interested in purchasing already developed businesses.
In the past, TCEL in fact spun off Bergio International, Inc. (OTCMKTS:BRGO), and until 2011 the pink sheet was the original diamonds and jewelry company. BRGO is known for its paradoxical position- a solid company, potentially generating strong revenues, but with a rock-bottom stock price, often going down to triple-zero levels. BRGO was slashed in half in recent days, from its peak at $0.0015 to $0.0007.
TCEL is thus not the classical pharmaceutical or stem cell company, as such tickers choose a different path in recent months. Many stem cell researchers, such as Easton Pharmaceuticals, Inc.(OTCMKTS:EAPH) turned from stem cells to medical cannabis. This has been beneficial for EAPH, which managed to preserve at least a piece of the gains, as it shot upward from $0.0025 to a peak at eight cents, and is still hanging on at $0.03.
In the case of TCEL, there is no mention of similar promises, and the next few days will show if this is a fluke. Investors’ forums compare TCEL to the run of Eco Building Products, Inc. (OTCMKTS:ECOB), which grew more than four times in a single day, but then immediately started to step downward, practically wiping out all the gains in a long string of days in the red.
For now, TCEL has very little to offer, and the best day may already be just a note of the past. It is best to be aware that a correction is very likely, so consider the timing carefully to avoid getting caught in the landslide.
