27 November Update: Life Stem's stock has been suspended from trading for ten market days and should resume trading on 9 December. In the meantime, the company continues to develop and we will continue to cover these developments and to keep our members updated. For all non-members who have an interest in this company's developments and our related proprietary strategies, please click here to activate your membership.
The remainder of this article was posted on 22 November:
Life Stem Genetics (LIFS) is an early-stage growth stock, and we are not surprised by the recent volatility in both share-price and trading volume. We commenced coverage of LIFS in late-October with a buy-recommendation around the $1 per share level, and the stock quickly ran to $1.90 – a Profit-Protect point for many of you. Today's dramatic pull-back is no doubt being driven by profit-taking as well, and we are in the process of updating our long-term projections on the company.
Today, LIFS announced a collaborative agreement with American CryoStem Corporation, which will provide Life Stem's medical clinics access to an FDA registered laboratory focused on the science of tissue collection, processing, and long-term storage of a patient's adipose tissue. Adipose tissue is essentially fat – and it is these stores of abdominal fat that contain up to 500 times more "mesenchymal" stem cells than bone marrow. Mesenchymal cells are key to Life Stem's Adult Stem Cell (ASC) therapies as these cells are able to differentiate into various types of tissues, and they do this automatically via cell receptors that facilitate migration to the injured, damaged, or diseased tissue locations within a person's body.
Life Stem's Chief Medical Stem Cell Specialist, James Vanden Bosch, BHA, commented on the collaboration, "This relationship secured with American CryoStem by Life Stem Genetics advances our physician's treatment protocols from traditionally collecting and processing patient's adipose tissue in the same day to establishing a treatment program not dictated by a single liposuction procedure. Patients can now visit a clinic and have future treatments with the same high quality adipose tissue."
On the financing side of the equation, Life Stem announced on Tuesday the closing of its previously announced $1 million financing, wherein Gloria Simov, president and CEO of the company, stated, "We are pleased to have closed the financing which reflects investor confidence in the strength of our Adult Stem Cell (ASC) clinic-based business model. The net proceeds from the private placement will be used primarily to attract additional affiliate clinics both in the United States and internationally and also for investment in various joint ventures under development ultimately moving our company's growth initiatives forward."
In our 27 October posting, we commented on Life Stem's published business plan, which is available for download at their corporate website at www.LifeStemGenetics.com/investors - "LIFS expects to have more than 140 affiliate and corporate locations in operation within five years and anticipates annual revenues of $111 million by year-five. We see this company as having solid growth prospects in an industry that's projected to top $75 billion in 2014."
Based on the rapid expansion of the global Adult Stem Cell treatment industry and the company's recent press releases, we are maintaining our positive outlook for the company's long-term growth prospects. Shareholders should continue to expect volatility in the LIFS trading pattern over the next few business quarters, and it is our job to guide you through this early stage in the company's emergence.