climbing up at full speed and last Friday its traded volume jumped over 10 million shares.In fact, that’s not something unusual for the company. On the contrary, historical records show that ACT has had regular unexpected gains based on optimistic rumors or promotions. Apparently, this time the up trend is due to more rumors and optimistic news, which continue to push up the stock price.
On March 23, ACT reported it was to be issued broad patent for human ES Cell-derived RPE cells in China. According to the announcement, the company’s progress in obtaining patent protection for its RPE program is considered as a testament to the continued recognition of its inventions and a protection of ACT’s therapeutic programs technology.
Being published, this announcement immediately influenced ACTC stock price and the climb began. Though, it seems that the news wasn’t the only factor for holding the bullish trend.
Along with the optimistic press release, traders on investorshub.com message board opened a big discussion about the massive trade. According to investors, something huge is about to happen with ACT. A possible reason for the recent gains appears to be the anticipation of the company unveiling details on its Phase I/II trials in Stargardt’s Macular Dystrophy and Dry AMD, scheduled to begin this year. Though, the trials are yet to be approved.[BANNER]
In the meantime, the annual report of ACT doesn’t look much optimistic. As of end-December, 2010 the company’s revenue has decreased almost 50% as compared to the year before, while its net loss has increased. Besides, the management of ACT claims that there is a large number of shares underlying the company’s debt and the sale of these shares may depress the market price of its common stock.
Since inception ACT has incurred huge net operating losses and as of December 31 the company had an accumulated deficit of over $180 million, as well as a stockholders’ deficit exceeding $23 million. Despite these results and the fact that the company is still waiting for its patent approvals, the team state they have sufficient capital to finance the operations for at least twelve months. Though, if they fail to ensure additional funds, ACT will be forced to either scale back the business efforts or curtail its activities entirely, while investors may not receive any return on their investment.
