There are some company announcements that the market simply refuses to respond to. Not because they are good or bad, but mainly, because they cannot really be classified as news in the general meaning of the word. Cord Blood America Inc.(OTC:CBAI) released just that this week, and this is perhaps why the usual volume of shares gets traded, while the price keeps its level. 
Truth be told, it is a matter of interpretation, since what Cord Blood announced is a potential acquisition of a South American company. Yet, there is only a non-binding agreement, cash is still to be found for the acquisition to take place. All in all, it will not be a surprise if the above happens, neither will it be one if it does not. So the stock price keeps its sub-penny level of $0.0023, while the volume of traded shares is as usual – between 30 and 70 million per day.
Yet, this situation is still better than in February this year, when a very sharp decline of the price took place in a matter of just a few days. In fact, ever since January 2010, when the price was still above $0.01, a decline began, which brought Cord Blood to its current level. Among the usual reasons that come along with penny stocks, one other might be the uncertainty of the business this company is set to succeed in.
Cord Blood America is engaged in the business of collecting, testing, processing and preserving umbilical cord blood, thereby allowing families to preserve cord blood at the birth of a child for potential use in future stem cell therapy. While some see this as the next big thing in medicine, others are not that optimistic. [BANNER]
For starters, it is without a question that stem cell technologies have the ability to treat a certain set of diseases. There are various studies proving that from countries all over the world. Much like organ transplants, the cord blood or bone marrow stem cells need to match the patient, and what better match than a person`s own umbilical cord as the cord blood has a lot of stem cells.
The flip side of the coin, however, is that while praised by some, this industry and the stem cell banks are highly criticized by US scientists. Furthermore, in countries like France and Italy, private cord-blood banking is banned altogether. Let alone, there is no guarantee that a person`s cord blood can cure a disease later, like in the case of one New York family.
And this, in fact, describes the situation with Cord Blood as well. The potential of investing in it now could be of immense profits in the near future. But as with stem cell treatment, evee for the illnesses for which it has been proved that they can be cured the success rate isn’t 00% either.
