Stem cell company’s engage in research methods which some people find to be objectionable. President Bush has been one of the largest critics of their methods and has taken the extreme action of vetoing Federal funding for embryonic stem cell research twice. The coming change in administration will bring support for embryonic research (see positions of both candidates from wikipedia below) which means the companys engaged in that area of research will become eligible for federal funding for their research. Of course it will take time to pass the bills and get the money to the companys, but the perception of change is likely to be the catalyst for more investor awareness/ buying of the stocks. None of the stocks look bullish here, but some of the charts are improving. The stocks I am watching in this group are:ASTM, GERN and STEM. I am long some ASTM now and will be a seller of part of the position near .40 and will hold the balance for a move up towards .50-.55 if the momentum builds. I do not consider these to be good investments, they are small speculative bets on a change in perception. If the stock drops down towards .32 I will liquidate and move on. Do your own research and manage risk.
Obama supports embryonic stem cell research and was a co-sponsor of the 2005 Stem Cell Research Enhancement Act which was passed by both houses of Congress but vetoed by President Bush. Obama condemned Bush’s veto, saying, “Democrats want this bill to pass. Conservative, pro-life Republicans want this bill to pass. By large margins, the American people want this bill to pass. It is only the White House standing in the way of progress – standing in the way of so many potential cures.” He also voted in favor of the 2007 bill lifting restrictions on embryonic stem cell research that was passed but was also vetoed by President Bush.
McCain is a member of The Republican Main Street Partnership and supports embryonic stem cell research despite his earlier opposition. He states that he believes that stem cell research, and indeed embryonic stem cell research, will continue whether or not the U.S. sanctions it, and so it would be the wisest course of action to support it to the extent that the United States will be able to regulate and monitor the use. In July 2008 he said “At the moment I support stem cell research [because of] the potential it has for curing some of the most terrible diseases that afflict mankind.