ATHX the Next Frontier?
If we take a look at the three year chart, it isn't a pretty one. Usually I will stay away from these stocks just because of the downward trend. It went from $5.50 per share to 1.01 per share. We are seeing it close to its 52 week low and just above the support (horizontal blue line) established in December 2010. The next two target points are $1.12 and $1.24. The lowest this stock has ever been at is about $.34 per share in late 2008.
The world may not be ready for stem cell technological advances, but sooner or later it will come. We've seen this stock move from $1 to $5 in a matter of weeks. No reason why it can't move like that again.
The fundamentals are not that great as witnessed by the company's need to raise additional funds just to keep the company afloat. Furthermore, technically speaking, if it busts through that 2010 support, we could be going down for a wild ride. Like with any small biotech company, you are almost gambling. Do your due diligence.
Disclaimer: Article is written for informational purposes. It isn't intended as investment advice.
Disclosure: I have a position in ATHX.