Brainstorm Cell Therapeutics, Inc. (OTC:BCLI) had a relatively good session yesterday, but recently a seemingly positive press release triggered a lot of selling.
At the close yesterday, BCLI shares traded for $0.23, a 4.55% gain. The volume of 386 thousand shares was close to the average, unlike the 2 million shares from Jan. 17.
That was the day BCLI issued a press release saying that data from BCLI’s ALS Phase I/II human clinical trial showed no significant side effects.[BANNER]
While the news sounds positive, BCLI closed down. The adverse market reaction may be the result of some traders tired of waiting.
BCLI has been around for a long time, but it’s yet to generate any revenue and, according to its most recent quarterly report, it doesn’t expect that to change until 2013. On top of that, despite having some working capital, BCLI will need significant additional financing for 2012.
Yesterday’s performance may be a signal that shareholders still have faith. Indeed, should the company succeed in its goals, it could bring value to shareholders. At this point, however, the future of the company is by no means certain, and only time will tell where BCLI will be a year from now.
