Brainstorm Cell Therapeutics Inc (OTC:BCLI) is a healthcare company engaged in the development of stem cell products. This alone is a good basis to take a look at it, but doesn’t mean it will take the market by storm.
This didn’t stop Ray Dirks from giving a recommendation on Jun. 22, giving BCLI target prices of $1.40 and $2.80 for 6 months and 1 year, respectively.[BANNER]
As a result, BCLI surged 75.86% on 11.5 million shares and 5.88% on 7.6 million shares the following two sessions, leaving the closing price on Friday $0.54.
Traders seem to be very excited about the target prices. However, they should keep in mind these are not certain by any means. BCLI has just recently began clinical trials and is unlikely to generate any revenue in the near future.
In addition, the company secured some significant funding in February. According to the latest available financial report, about 40% of BCLI’s current assets could cover their current liabilities, and the remaining amount would be sufficient for about one year, if they continue spending money at this rate.
Companies in the development-stage are always risky. BCLI is still there. The potential profits could be impressive, if their plans work out. However, there is absolutely no guarantee they will, and traders should not act rashly.
