Market Playground

By VFC’s Stock House

The historic trials that launched Advanced Cell Technology (OTC:ACTC) from a little-known, sub-dime OTCBB company into the main stream of embryonic stem cell treatment are underway. ACT  announced on Thursday that the first patients were enrolled in the Stargardt’s Macular Dystrophy (SMD) and Dry Age-Related Macular Degeneration (Dry AMD) Phase I/II trials that utilize the retinal pigment epithelial (RPE) line of ACT’s stem cell technology. Each trial is expected to enroll 12 patients.

ACT is primed to become a big player in the field of embryonic stem cell medicine, in a sector where Geron (NASDAQ:GERN) has dominated the headlines for years.

It’s already been a fine go-of-it for ACTC, flying from the nickel range to over twenty cents when the FDA approved these trials, but over the long run there could be more to come from this company and its stock. 

That said, the current market cap of roughly $300 million is a fair estimation, in my opinion, given the early stages of the pipeline while also recognizing its ground-breaking potential.

It’s a possibility that ACT will, at some point, look to conduct a reverse stock split in order to begin trading on one of the big boards. It’s a bit premature to expect this company to reach a buck in another scenario, since that would make this a billion-dollar company if that were to occur under the current share structure; and we’re not quite there yet.

This is a is ‘hold for the long term’ play, in my opinion. Keep an eye on it.

Disclosure: No Position

VFC’s Stock House offers investing opinions, insight and ideas on a variety of different stocks, options and ETF’s, as well as commenting on news that effects the market.