The financial markets have yet to recognize the full potential of these companies. Venture capital is hard to come by. Initial public offerings and secondary offerings by companies with solid technology have floundered.
Following Judge Lamberth's ruling, we saw a drop in stock prices for all stem cell companies, and then a slight recovery. We believe that investors pulled out of stem cells in general because they couldn't differentiate between adult and embryonic cell companies.
For those investors who have knowledge of the stem cell arena, we believe that now is the time to invest because prices are attractive and visibility of advances can be expected as soon as this autumn. Such advances, along with articles in peer-reviewed publications, clinical trial reports and third-party verifications, will pave the way for a more appropriate reckoning of stem cell stocks in the financial markets.
At some point, possibly in the near future, a breakthrough stem cell medical treatment for a severe condition will be reported. When that happens, those who invested wisely today will be the cover story for financial magazines tomorrow.
Stephen Brozak is president of WBB Securities, an independent broker-dealer and investment bank specializing in biotechnology, medical devices and pharmaceutical research. Dr. Lawrence Jindra is director of research for WBB Securities.