I’ll just start off by telling you that yes, this stock might be one of the most familiar biotech ideas we’ve ever covered here at Stock Gumshoe — not necessarily because I like it or our other writers like it, or even because it’s been a good investment, but because it’s been so aggressively teased and touted so many times for so many years. And several of you have written in to guess at the stock (with the right answers, naturally, we’ve got a wise bunch here).
But I don’t want to spoil the surprise, and the ad is brand new in this current version, so let’s dig into it and see what they’re talking about…
… the ad is from Stephen Petranek for his Breakthrough Technology Alert over at Agora Financial (either $1,250 or $2,000/yr, depending who you ask), here’s how it starts:
“U.S. Food and Drug Administration Readies for Breakthroughs from…
“The Resurrection Cell
“Here’s why a little-known $2 stock on the forefront of this Nobel Prize winning technology could explode over 1,000% starting March 31, 2016”
What does it mean an explosion “could start” on March 31? You guessed it, that means — nothing at all! But it sure sounds exciting and imminent and gives you that feeling of “oh my GOD I can’t wait a second I have to get in now!”… and that’s all a copywriter needs to get your attention without making the lawyers mad.
On the order form it says…
“… in as early as a few days, shares in Ethical Stem Cells Inc. has [sic] the potential to soar if possible news of the first stem cell approval hits. If it does, it’ll take Wall Street by surprise.
“And your quick action today puts you out front of the “so called experts” who will be scrambling to catch up.”
So we’ll keep that “promise” in mind as we skim through the rest of the ad — and yes, they did make up a clever name to disguise their secret recommendation, so no need to go Googling “Ethical Stem Cells Inc.,” that’s just their invented term for this stock.
So what is it? Well, it is indeed a stem cell company (remember when those were hot stuff five or ten years ago?), and Petranek gets the ad started by asking you to imagine having a heart attack, getting to the hospital on time, and having the cardiologist tell you that he can take some stem cells from your armpit, turn them into heart cells, and inject them to rebuild your damaged heart tissue in 60 days. Which obviously sounds fantastic (and, no coincidence I’m sure, 60-70 year old men who are most afraid of heart attacks on the golf course are also the prime market for investment newsletters). Here’s a bit of the ad:
“Just last July, scientists grew fully functioning; beating cardiac tissue… using a strange new cell that may be the biggest game-changer in medical history….
“This technology has already been tested on humans with great success.
“In fact, one Mayo Clinic trial achieved a 100% success rate with a form of this cell!
“The doctor in charge of the trial reported ‘We have demonstrated the feasibility and safety of this procedure.’
“Institutions like UCLA, Cornell and the prestigious Icahn School of Medicine at Mt. Sinai are into forms of this technology… big..
“Even companies like General Electric and Google are ready to send shockwaves through medical science with this technology on their own.
“In a few moments I’ll show you more, incontrovertible evidence that a simple cell could indeed cure heart disease inside of a decade.
“And I’ll also show you how it could make shareholders in companies that work with The Resurrection Cell utterly ridiculous amounts of money.
“In particular, a tiny company that I think holds not only the keys to The Resurrection Cell, but other regenerative medicines. And this company has already shot up as much as 1,000% in the past R