@jacobskip tweets, "What do you think about ACTC? Is Socius funding kiss of death? Have any additional information to share on Socius/Peizer?"
This was in response to a tweet of mine pointing out that Advanced Cell Technologies (ACTC.OB) nabbed $25 million in funding from Socius Capital Group. Sounds innocuous enough, but Socius is chaired by Terren Peizer, the founder and CEO of Hythiam (HYTM.OB), peddlers of the controversial Prometa addiction treatment program. Peizer claims Prometa is a revolutionary new way for addicts to kick the habit. Critics accuse Peizer of selling snake oil. I suggest checking out Hythiam's stock chart over the past few years before deciding which side is right.
Now, Advanced Cell's embryonic stem cell research has nothing to do with Hythiam or treating drug addicts. However, if Advanced Cell's stem cell technology is as revolutionary as its founders claim, why does the stock trade on the bulletin boards, and why does the company need to seek out funding from someone as controversial as Peizer?
Socius has an "impressive record of making investments in emerging life scienes companies," said Advanced Cell in its funding announcement. I checked Socius' recent filings with the Securities and Exchange Commission and found that the firm's investment holdings include Muscle Pharm (MLSP.OB), New Generation Biofuels Holdings (NGPF.PK), PositiveID (PSID), Dutch Gold Resources (DGRI.PK), International Stem Cell (ISCO.OB), DayStar Technologies (DSTI) and ZBB Energy (ZBB), among others.Advanced Cell, even trading for 20 cents a share, has an enterprise value of $250 million because the company has 1.3 billion shares outstanding! Traders likely consider a 20-cent stock to be cheap and love that the company issues press releases all day long to keep the stock liquid. For those of us who look at fundamentals and balance sheets, a $250 million enterprise value for a high-risk company like Advanced Cell is really expensive. --Written by Adam Feuerstein in Boston.
>To contact the writer of this article, click here: Adam Feuerstein. >To follow the writer on Twitter, go to http://twitter.com/adamfeuerstein. >To submit a news tip, send an email to: email@example.com.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV