Geron Fans Make Mountain Out of GE Molehill

Geron(GERN Quote) shares rose sharply Tuesday after the company announced a pact with the health care unit of General Electric(GE Quote) to develop embryonic stem-cell test products.

As with most announcements that come out of Geron, investors overreacted Tuesday, sending shares up 18.4% to $7.92. This makes shorting the stock a tempting option. The agreement with GE Healthcare is relatively minor and isn't likely to have much of a financial benefit for Geron.

Nonetheless, it's probably still too early to put on a Geron short. The company is still gearing up to enroll the first paralyzed patient in the company's phase I spinal cord injury study with its stem-cell drug GRNOPC1. ...