American Cryostem Corp (OTC:CRYO) is a relatively young company which focuses on collection, processing and long-term CRYO_chart.gifstorage of adult stem cells. The company began trading on the OTC in April this year after R & A Productions, Inc. acquired its assets for 21 million shares, making CRYO the majority shareholder of the company.

Last Friday, CRYO closed up 27.66% at $1.20, however, the volume was only 1,700 shares. The average for CRYO is a little over 2 thousand shares.[BANNER]

While CRYO has announced the launch of a service offering people in the US to store their stem cells from fat tissue, and the opening of an FDA registered tissue processing facility in Mount Laurel NJ, the performance of CRYO stock hasn’t been very impressive – low volumes and inactive sessions.

The market for the services offered by CRYO is still young and relatively limited, so such a performance is to be expected. Furthermore, CRYO is yet to provide some financial results, and if the company can’t finance its operations from revenue the source of funding will be equity or debt, neither of which will benefit the shareholders.

3CRYO_logo.jpgOn the other hand, young markets have a lot of potential to grow, which may result in huge profits. So far, CRYO has hardly provided enough information to allow traders form a solid idea of how the potential downside stacks against the upside potential. Still, it may be a good idea to keep an eye on the company just in case it becomes more interesting.