Biostem U.S. Corp. OTCQB: HAIR – Momentum Play With Long Term Potential

Biostem U.S. Corporation (OTCQB:HAIR) is ”a technology licensing company with proprietary technology centered on providing hair re-growth using human stem cells. The company also intends to train and license selected physicians to provide Regenerative Cellular Therapy treatments to assist the body’s natural approach to healing tendons, ligaments, joints and muscle injuries by using the patient’s own stem cells. Biostem U.S. is seeking to expand its operations worldwide through licensing of its proprietary technology and acquisition of existing stem cell related facilities. The company’s goal is to operate in the international biotech market, focusing on the rapidly growing regenerative medicine field, using ethically sourced adult stem cells to improve the quality and longevity of life for all mankind.”

We bring this company to your attention today because of increasing investor awareness. As we have mentioned in the past, an increase in investor awareness often leads to share price increases, which presents the opportunity for exciting profits.

Long-term potential:

But what makes HAIR really interesting is that while we are currently presenting it as a momentum play, HAIR might be a smart long term investment as well. This long-term growth speculation stems from the fact that at least two of Biostem’s top players were also instrumental in building Crocs, Inc. (NASDAQ:CROX) into a billion dollar organization. While the other top executives have great clinical and research experience in areas most relevant to Biostem’s potential for success.

Biostem’s recent important announcements include: a) raising a whopping $5,000,000 in a private placement of stock, and b) the appointment of Philip A. Lowry, MD, as the Chairman of its Scientific and Medical Board of Advisors. Dr. Lowry’s career-long interest in regenerative medicine includes studies at Harvard (undergraduate degree) and Yale (medical degree); research into stem cells; teaching at the University of Massachusetts where he helped establish its bone marrow/stem cell transplantation program; and ten years of medical practice in hematology and oncology.

Our take:

As noted above, we are presenting HAIR as a momentum play. Over the short-term, we believe it will behave as a typical company undergoing an investor awareness campaign – that is, a run-up in price that may be followed by a crash. But, considering the company’s long-term growth prospects, the usual crash mechanism may not play out. So the typical pattern of the crash that follows the exit of profit-seeking investors might not be so tragic or long-lasting because many investors may hold for the long-term and/or buy more when bargain opportunities present. We hope that all investors will be able to enjoy nice profits.

However, again we stress that we have made no effort to evaluate HAIR as a long term investment. For investors wanting to investigate Biostem more deeply (perhaps while also jumping in before the investor awareness campaign really starts so as not miss out on potential short term gains), the company’s general website is linked here and its investor relations page here.

Risks in speculation:

Biostem so far has reported minimal revenues, large losses and has negative equity as of its last financial report. Until quite recently HAIR has been lightly traded and may return to that state – leaving investors with hard-to-sell stock.

At this point, we are only presenting HAIR ONLY as a stock that might be of interest to those looking for a highly speculative play. All the attention paid to HAIR will likely drive a lot of volume, but this does not mean prices will go up and in fact may go down.

Investors interested in the momentum play aspects of HAIR should be prepared to get in quickly when they feel the time is right, watch the stock closely and take their profits (if any) at a level they choose. On the buy side, we recommend that investors limit their bid price so they get in at a reasonable price – although based on activity so far it might be difficult to buy at current prices.

Investors in HAIR should be prepared to lose their entire investment. Always remember to do your own due diligence, checking up on company filings and consulting with an investment professional.

Additionally, remember our disclaimer.

NOTICE: This article was based on research of stock market information and other sources of information, found both online and in print media. Neither StockTips.com nor any of its owners, contributors, officers, directors, consultants, or employees take responsibility for the accuracy of the information contained in this article or the accuracy of the information on which this article was based. StockTips.com was not compensated by any of the companies mentioned in this article for the preparation of this material, nor were the materials approved by the companies which were mentioned.