Stem Cell Penny Stocks

2009 could be the year to buy stem cell penny stocks. Many of these research companies have been beaten down more than the stock market as a whole, even in this dreadful recession. But as everyone knows, one of the first things President Obama did after his inauguration was to lift the ban on stem cell research.

Will this move lead investors to buy stem cell penny stocks? It’s too early to tell. And the stock market is often not as predictable as, say:

Lifted ban = Stock goes up

Nevertheless, we’ll take a look at two of the most popular stem cell penny stocks in which you could invest in 2009.

Stem cell stock to buy #1: StemCells, Inc. (NASDAQ:STEM)

Market cap (as of 4/6/09): $161 million

On March 26, 2009, StemCells entered into an agreement to purchase a building in Sunnyvale, California, for $5.65 million, leading some investors to speculate that STEM views its prospects as rosy, and is ready to expand its business in a major way.

I stated in my last, more general, post on stem cell penny stocks that some potential long-term winners would be the companies who pushed their research to the max during the eight years that President Bush had outlawed stem cell research. STEM is one of these companies. It was able to use money from California’s Proposition 71 to do research over the past several years. Prop 71 established California’s Constitutional right to conduct stem cell research, and funnels $3 billion over ten years into stem cell research, especially of the human embryonic type. It was passed into law by voters in November of 2004.

STEM is currently trading at $1.69, almost half its 52 week high of $3.07.

Stem cell stock to buy #2: Geron Corporation (NASDAQ:GERN)

Market cap (as of 4/6/09): $438 million

Another thing I mentioned in my last post to look for in penny stem cell stocks was this: Is the company focusing its research on cancer treatments and cures? Cancer and heart disease are so insidious in the wealthy nations who could be customers of companies like StemCells, Inc. and Geron Corporation. And as investors, we need to buy stock in companies which can set their prices high and successfully sell at these high prices. In other words, we need buyers with money who in turn need us.

Here are some snippets of information from Geron’s product page: “[We are] developing first-in-class biopharmaceuticals for the treatment of cancer… heart failure and diabetes… We are also the world leader in the development of human embryonic stem cell-based therapeutics.”

Geron has also recently obtained the FDA’s first-ever approval for a human clinical trial of a human embryonic stem cell therapy.

GERN is currently trading at $4.95, right between its one-year range of $1.95 to $8.50.

If this is information that people truly want, I will continue to bring forth my research on investment opportunities in stem cell penny stocks. Until then… Happy buying!