Dragni Dragnev

Advanced Cell Technology, Inc. (OTCMKTS:ACTC)'s Rise – Halted

by Dragni Dragnev July 10, 2014

Advanced Cell Technology, Inc. (OTCMKTS:ACTC) had two sessions of impressive growth, gaining more than 15% just before Independence Day, but evidently the ticker couldn't maintain its pace after the extended weekend. It has been struggling with the market ever since Thursday, barely managing to move a single percent despite the heavy trading.

Unlike most OTC Markets stocks that have a tendency to crash right after a steep climb, it looks like ACTC was able to hold into its gains this time. Perhaps it is because, in this instance, the jump was based on something real, rather than hype and pumps, as is usually the case with big and sudden OTC Markets movers.

Finding non-toxic funding and hiring excellent management in the face of Dr. Wotton are serious achievements, that did warrant some upward movement on the charts – but not too much. After all, ACTC also has a some very serious issues that should not be ignored dragging it down.

Numbering among those are the company's slow progress with regard to the AMD and SMD trials, the dilution ACTC keeps dumping on investors and, last but not least, its ridiculously overblown market cap. The latter may yet prove to be a serious problem yet. By all accounts, it looks like ACTC has found some kind of fragile balance around the $0.08 mark – for now. However, it is uncertain how long that equilibrium will last - $227 MILLION is just too high a market cap for a development stage pharmaceutical company, whose roll-out is nowhere in sight.

Another OTC Markets company whose ticker barely moved yesterday, despite being one of the more heavily traded companies in that session, is Medical Marijuana Inc. (OTCMKTS:MJNA).

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