The last thing I ever want to turn this blog into is a platform for political debate, I’m not interested in politcs, I’m interested in MONEY! The reason I bring up politics right now is because there may be an overlap between the potentially changing political landscape and ability to profit from it. I am speaking about the current talk of Dems possibly retaking control (please do not leave comments about politics, I will not post them).
Here in Colorado I have seen some of the Democratic campaign advertisements talking about President Bush and Republican opposition to stem cells and how a vote for the Democratic candidate can change the future for this issue. President Bush has been adamant against federal funding for stem cell research and many people think this view is closed minded idealist thinking. I do not wish to express an opinion, only point out the poteintal for a trade based on PERCEPTION of potential change.
If you have read anything about the science of stem cells you probably think that there is some potential for amazing scientific breakthroughs from this emerging science, at least I do. I have traded these stocks numerous times in the past and have been careful not to let my opinion of the science cloud my judgement for the stocks. When a stock is going down it is a bad stock to be long, regardless of what the company does. When the stock is moving higher (or looks like it is about to move higher) then I am interested even if the story doesn’t make sense. When you get a good story with a good chart, all the better! It feels good to know “why” other people are buying, but the money spends the same as if you didn’t know “why”. Sorry for the tangent.
Ok, heres the play. Stem Cells Stocks. These are the ones I am aware of;
StemCells Inc. (STEM)
Aastrom Biosciences Inc. (ASTM)
Geron Corporation (GERN)
AVI Biopharma (AVII)
You may or may not agree with my list, but this is the group of stocks that usually moves when there is news relating to stem cells. If you know of others please post a comment.
Right now I am long a small amount of STEM and plan on adding to it if the stock shows strength. I do not have positions in the other ones, but the AVII chart does interest me.