Borislav Tonev

Advanced Cell Technology, Inc. (OTCBB:ACTC) Gets Bullied

by Borislav Tonev August 22, 2013
5ACTC.pngWe last wrote about Advanced Cell Technology, Inc. (OTCBB:ACTC) a week ago when their financial report for the second quarter of 2013 came out. We mentioned that some of the figures in it look better compared to the preceding filings while other financials have deteriorated and we talked about the fact that unlike a lot of the small cap ventures out there, they do seem to have an unusually strong (for a biotech penny stock company) support from their shareholders. The reasons for this are still unknown to us.

Like so many other penny stock ventures, ACTC have been going through quite a struggle throughout the years to finally get their technology on the market and start making real money. Unlike a lot of their counterparts, however, cash hasn't been that much of a problem. With the $35 million line of credit that they announced back in September 2012, it's unlikely that it will become one in the near future, either. In addition to this, the management team seem very optimistic about the trials that they've been conducting.

At the same time, as we mentioned numerous times in the past, the whole development stage seems to be taking quite a lot of time which, on the one hand, is to be expected from a life science start-up enterprise, but on the other, is not always a good sign in Pennyland. The conclusion that we reached was that being an ACTC shareholder is, most definitely, not an easy task and one that requires a lot of patience and trust towards the management team.

With that in mind, we knew that fluctuations in the price are to be expected and that a consistent surge in the right direction 59PSON.pngwill not happened in the near future (if at all). But what about factors that could depress the price?

As we all know, penny stocks are often vulnerable to influences from media (or in fact any other sort of) coverage. We've seen in recent months that sometimes contributors on Seeking Alpha tend to write articles that reveal some huge red flags around companies that are being targeted by paid promoters. It happened to Petrosonic Energy Inc (OTCMKTS:PSON) back in January and in July Northumberland Resources Inc 660NHUR.png(OTCMKTS:NHUR) went through the same treatment. As you can see from the charts on the right, the effects of the Seeking Alpha articles were pretty devastating.

Unlike PSON and NHUR, ACTC hasn't been under the promotional spotlight for the last two years but despite this, a person by the name of Josh Ginsburg published his opinion on the company in a Seeking Alpha article and, just like the two examples that we gave you above, he doesn't seem to be particularly fond of ACTC or, in fact, their management team.

Mr. Ginsburg's exposé went online just minutes after the start of Monday's trading session and it had its immediate effect. ACTC opened the day at $0.0685 and shortly after, it started sliding. By the end of the day around 14 million shares had changed hands resulting in around 7.6% in losses. It managed to recover a small portion of the lost ground on Tuesday, but yesterday it slid some more. As we mentioned, this kind of behavior is to be expected from a volatile penny stock, but the real question is: "Should you trust Mr. Ginsburg and his arguments?".

It's entirely up to you, but we should say that he is speaking about a lot of real problems around ACTC that we've mentioned in our own coverages over the years. He tells us about the overgenerous annual salaries among members of the management team, about the problems with the SEC, but the building block of his argument is the massive dilution.

ACTC recently announced that they want to add a further 1,000,000,000 to the number of authorized shares and currently they are also contemplating increasing the ratio of their planned stock split. Generally speaking, opinions are divided, but having seen the message boards, we are inclined to think that a larger portion of the shareholders reckon that, rather than bringing ACTC closer to uplisting on one of the national stock exchanges, these steps will simply create room for yet more share issuance and thus, further dilution.

At this point, nobody is able to say for sure what exactly is going to happen and there can be no guarantees that the aforementioned steps will even be approved by the shareholders. Despite this, we reckon that considering all the possibilities and dangers is crucial before deciding on your next move.

Comments 16

1. Guest
May 08, 2019, 11:51AM

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2. Guest
August 30, 2013, 11:41AM

Quotes Gary Rabin is one of the worst CEO's I've seen. He is doing the company and his investors a great disservice by pursuing this reverse stock split. Continually, talking about the split has scared off investors and kept the stock price low. Rabin needs to concentrate on proving value and allowing the market to take its course. Instead he is willing to sacrifice the profit potential of the numerous smaller investors that helped to get the company where it is today. Vote AGAINST a split.

3. Guest
August 22, 2013, 01:49PM

Quotes I have followed Mr. Josh Ginsburg's articles and followed some of his
suggestions...ie: OPK and have done well. Of course I'll keep an open mind
in lieu of my wallet.
STEVE ZINZ

4. Guest
August 22, 2013, 01:32PM

Quotes Out of ACTC air space at once!

http://www.youtube.com/watch?v=zbnDr_IbdIU

5. Guest
August 22, 2013, 01:27PM

Quotes Nelly was more up and down bouncy on this ACT thing plus better to look at

6. Guest
August 22, 2013, 01:25PM

Quotes Vlad The Impaler has a better haircut than Boris

7. Guest
August 22, 2013, 12:53PM

Quotes Borislav,

I'd suggest that you buy a ticket to America and learn a thing or two about Advanced Cell Technology. Sitting there clueless in Bulgaria doesn't give you a lot of credibility.

Arthur Jones

8. Guest
August 22, 2013, 12:48PM

Quotes One other thing 26 patients in a phase I/II clinical trials have been treated so far with 50k, 100k and 150 k with RPE cells (not a drug) from hESC with no safety issues for all 26 with acuity improvements. When was the last time that something was done in medicine for all you hot shots? Try 1953 with Jonas Salk. Oh and by the way Robert Lanza trained under Dr Salk. Google Salk maybe you have heard of him.......

9. Guest
August 22, 2013, 11:51AM

Quotes "Embryonic stem cells as a
treatment for macular
degeneration"


not maybe a treatment but treatment Expert opinions for unmet #1 medical need. go read the paper please

10. Guest
August 22, 2013, 11:40AM

Quotes Analysis these,read the paper go find the patents

Experimental Eye Research
journal homepage: Experimental Eye Research - Journal - Elsevier

Reynolds, J., Lamba, D.A., Human embryonic stem cell applications for retinal degenerations, Experimental Eye
Research (2013), http://dx.doi.org/10.1016/j.exer.2013.07.010

Embryonic stem cells as a
treatment for macular
degeneration
Carolyn K Pan, Gad Heilweil, Robert Lanza & Steven D Schwartz†
†University of California, Jules Stein Eye Institute, Retina Division, Los Angeles,
CA, USA

Expert Opin. Biol. Ther. [Early Online]







11. Guest
August 22, 2013, 11:15AM

Quotes Reasons for investor support
1. Visual acuity improvement in almost every patient treated to date.
2. Halt of disease and maintained VA in all but 2 patients and that includes the first 2 patients treated more than 2 years ago.
3. 4 out of the 5 top eye hospitals in the US participating in these trials including the top eye hospital in the world, Moorefield Eye Hospital. (Ask them why they are on board)
4. FDA approval to treat early stage patients in a Phase I trial due to exceptional results to date.
5. Robert Lanza CSO http://en.wikipedia.org/wiki/Robert_Lanza
6. Rober Langer on the BOD http://en.wikipedia.org/wiki/Robert_S._Langer
7. Amazing imminent pipeline of products that will rival the already enormous AMD market (Blood products, MSC's).
8. 0 investors here because of management.

12. Guest
August 22, 2013, 11:00AM

Quotes If you didn't know dilution - read FUNDING FOR PHASE II - was coming then you haven't been paying attention and are naive. He has been talking about uplist being TOP PRIORITY for 2 years now. sheeshhh

13. Guest
August 22, 2013, 10:51AM

Quotes Despite the amazing promise with the science, what CEO Rabin did last week is totally reprehensible. He made a show of how well they are doing and the planned uplist, but mentioned nothing about the 1B share dilution proposed. Many investors (including myself) added to their positions based on the strength of that conference call. Two days later, the bombshell is dropped about the planned massive increase in shares, which means huge dilution. This is a hugely material factor, and for Rabin not to have mentioned it is nothing short of criminal. This is why I am having my lawyer look into the possibility of a civil suit against Rabin, as well as lodging complaints with the SEC.

14. Guest
August 22, 2013, 10:12AM

Quotes 1. Top five eye hospitals/vitreoretinal surgeons in the world conducting the trials
2. Only FDA approved human eSC Phase I trial with 100% safety AND efficacy.
3. Patent on single blastomere technology THAT DOES NOT HARM THE EMBYO allowing for non-politically charged hESC research.
4. Dr. Robert Lanza Keynote speaker Georgia Tech Regen Med conference March 2013
5. Dr. Robert Lanza Keynote speaker Boston's Brigham-Women's Hospital Regen Med conference May 2013. Dr. Paul Knopfler stem cell blog after which posted "If this is true, this is HUGE."

15. Guest
August 22, 2013, 10:06AM

Quotes "we talked about the fact that unlike a lot of the small cap ventures out there, they do seem to have an unusually strong (for a biotech penny stock company) support from their shareholders. The reasons for this are still unknown to us."
Um, other than trying to halt or cure blindness and, so far, being pretty damn successful at it, I can't think of a reason either. Oh yeah, then there is that Lanza guy. Wait, isn't there a guy named Langer on their Board who is sort of well known? Didn't I read somewhere that THE TOP FIVE EYE HOSPITALS IN THE COUNTRY are the ones participating in their trials? Nope - can't figure out a single reason why shareholders are gung ho.
One more thing: 20/400 to 20/40.

Ike

16. Guest
August 22, 2013, 10:05AM

Quotes "we talked about the fact that unlike a lot of the small cap ventures out there, they do seem to have an unusually strong (for a biotech penny stock company) support from their shareholders. The reasons for this are still unknown to us."
Um, other than trying to halt or cure blindness and, so far, being pretty damn successful at it, I can't think of a reason either. Oh yeah, then there is that Lanza guy. Wait, isn't there a guy named Langer on their Board who is sort of well known? Didn't I read somewhere that THE TOP FIVE EYE HOSPITALS IN THE COUNTRY are the ones participating in their trials? Nope - can't figure out a single reason why shareholders are gung ho.
One more thing: 20/400 to 20/40.

Ike

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