Geron (GERN) is an Obama hype stem cell stock; daytraders delight. The stock has been between $3 and $5 for the better part of the year but when Obama signed the stem call legislation daytraders rushed it. Once daytraders are done with it, I believe it shall collapse. This is "thesis" stock 101. There is no rational valuation you can put on a company like this; they will be lucky to do $1M in revenue in any quarter... it's "hope" and "promise".
- Shares of Geron Corp. continued rising Monday, buoyed by the possibility that President Barack Obama might loosen restrictions on federal funding for embryonic stem cell research. The stock gained $1.06, or 15 percent, to close at $8.15. Shares hit $8.47 earlier in the day, their highest point in more than two years.
- On Friday, the Food and Drug Administration cleared Geron's application to conduct early-stage clinical trials on its stem-cell based therapy, aimed at treating severe spinal cord injuries. The Menlo Park, Calif.-based company is the first to gain such clearance for embryonic stem cells, which are unspecialized cells capable of turning into a wide variety of other cells.
My goal is that gap to fill in the $5.60s so I'm setting a limit order to cover at $5.80. That would be a tidy 25% gain from here.
Short Geron in fund and personal account
3 comments:
It will reach the $9 dollar level when this bill passes congress and is signed into law by Obama.
H.R. 872. To amend the Public Health Service Act to provide for human embryonic stem cell research, to direct the National Institutes of Health to issue guidelines for such stem cell research, and for other purposes.
http://www.govtrack.us/congress/bill.xpd?bill=h111-872
Sponsored by Diana DeGette and Mike Castle. It was the same bill that Bush vetod twice. If I were shorting this stock, I would wait until after the ban is lifted. But for now I am long.
I posted my tade on youtube.
"Long GERN $8.17"
http://www.youtube.com/watch?v=RjqbfzGvSS4
Great analysis Mark. It was clear that GERN was overbought.
Shorted GERN at $7.50 and bought to cover today for a 22.6% return.
Keep up the great work.
Admin,
glad to see someone prospered.
I only did half the trade correctly (entering). Exiting was another matter.
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