US Stem Cell Inc (OTCMKTS:USRM) has been holding a strong bid in the current pattern, with support under the dime level taking hold this past week in a rising trend, well above both the 50- and 200-day simple moving averages. We have been generally bullish on the stock since we speculated back in March that its upside was related to the potential amicable settlement of a legal matter with NorthStar Biotech.
As it turns out, that narrative was very much on right track. And the stock hasn’t really looked back. Traders will note 32% piled on for shareholders of the listing during the trailing month. This is emblematic of the stock. USRM has a history of dramatic rallies. Moreover, the name has seen an influx in interest of late, with the stock’s recent average trading volume running 18% above its longer run average levels.
US Stem Cell Inc (OTCMKTS:USRM) bills itself as a company committed to the development of effective cell technologies to treat a variety of diseases and injuries. By harnessing the body’s own healing potential, we may be able to reverse damaged tissue to normal function.
U.S. Stem Cell’s discoveries include multiple cell therapies in various stages of development that repair damaged tissues throughout the body due to injury or disease so that patients may return to a normal lifestyle.
USRM is focused on regenerative medicine. While most stem cell companies use one particular cell type to treat a variety of diseases, U.S Stem Cell utilizes various cell types to treat different diseases. It is our belief that the unique qualities within the various cell types make them more advantageous to treat a particular disease.
According to company materials, “US Stem Cell, Inc. (formerly Bioheart, Inc.) is an emerging enterprise in the regenerative medicine / cellular therapy industry. We are focused on the discovery, development and commercialization of cell based therapeutics that prevent, treat or cure disease by repairing and replacing damaged or aged tissue, cells and organs and restoring their normal function. We believe that regenerative medicine / cellular therapeutics will play a large role in positively changing the natural history of diseases ultimately, we contend, lessening patient burdens as well as reducing the associated economic impact disease imposes upon modern society.”
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The company also recently highlighted its Q1 results. Their latest press release highlights the following results from operations for the quarter ending March 31, 2017: Revenue up by 62% from $710,000 in Q1 2016 to $1.15M in Q1 2017, Gross profit up by 45.6% from $556,000 in Q1 2016 to $810,000 in Q1 2017, Cash Flow is positive Q1 2017 at $268,000 compared to Q1 2016 at ($62,000), All debt-to-equity convertible notes have been either fully paid or converted as of March 31, 2017.
“We are very pleased with the 2017 improvements in operations and balance sheet performance,” said Mike Tomás, President & CEO of U.S. Stem Cell, Inc. “We are progressing with our principal strategic business initiatives which include growing top line revenues and pursuing new business opportunities for exponential growth.”
That has defined the tone for the stock in recent action, and we look for more of the same in coming action because the tape tells a story, as always. In our experience, when you see a rising set of daily range lows as we have seen over the past 15 days in USRM, you want to bias for further gains and be very careful on the short side. The bid is dominating despite any evidence of over-enthusiasm in the press or by momentum traders.
Slow and steady wins the race in tape-reading. Very rarely is it the flashy moves that sustain themselves. It’s not immediate headlines either. It’s the slow, steady grind that tells the story. In USRM right now, what we have is a stock that is grinding higher on steady volume as the company comes off a positive legal conclusion in a high-growth market segment. That has a good feel to it right now.
At this time, carrying a capital value in the market of $34M, USRM has a reserve ($619K) of reported cash on the books, which stands against about $3.3M in total current liabilities. One should also note that debt has been growing over recent quarters. USRM is pulling in trailing 12-month revenues of $3.5M. In addition, the company is seeing major top line growth, with y/y quarterly revenues growing at 62.5%. We will update the story again soon as developments transpire. For continuing coverage on shares of $USRM stock, as well as our other hot stock picks, sign up for our free newsletter today and get our next hot stock pick!