One small step for AMBS investors, one GIANT leap for… no one so far.
SR followers are aware that coverage of Amarantus was discontinued October 28th, 2014.
Back then, even with the multitude of potential catalysts, it became painfully obvious that Gerald had been too enthusiastic for far too long. Most investors, fatigued by the barrage of hype in PRs and Chairman’s blog posts, simply went elsewhere looking for gains.
The evidence is quite clear, while many of those catalysts have come and gone, four months later the share price still hovers at $.08. ‘Opportunity cost’ had hit Amarantus’ stock price.
Which brings us to a small step in the right direction. Last week Amarantus announced a Lympro collaboration with Anavex to evaluate their drugs in future clinical trial phases. A customer finally finished window-shopping and even put a down-payment (Letter of Intent) on a future purchase!
This brings us to SR’s current stance on AMBS stock.
The four-month long opportunity cost to investors does not appear to be lifted by this news. Future trials of Anavex’s drug cocktails won’t begin until the later half of 2015. Amarantus’ promise of commercialization in 2014Q4 was missed entirely.
However, investors may see this as confirmation of their investment thesis. For this reason alone, SR now rates AMBS as a hold. Where there is one customer, more usually follow. Trying to time trades or investments with new Lympro purchases would probably result in missing them entirely.
SR is still not confident that the opportunity cost of owning AMBS stock has passed, but if you already own shares it may not be the best time to bail. If you are looking for a spec play in the penny-stock biotech arena, this may be a good time to start planning your entry points.
That’s it in a nutshell! Too many missed timelines but a recent small confirmation that it isn’t all penny-stock hooey.