Stem Cell Therapeutics Corp. (CVE:SSS) (PINK:SCTPF) shares start another week in the same price channel despite the heavier than normal activity over the last two trading sessions.
SSS lost 16.7% on Friday and the stock price remains pressed hard against support at 7.5 cents. Such a situation was challenged by a massive trading activity detected on Thursday, but it failed to carry on and didn’t do much for the stock price either.
The stock couldn’t get out of the channel and bounced of the resistance at 9 cents. Thursday’s move had significant potential to it as the commotion was caused by news announcement. The failed breakout depicts a significant weakness and lack of positive sentiment.
On May 19 the company announced they were granted a patent relating to platelet derived growth factor. The patent allows them to produce populations of neural progenitor cells, which can be differentiated into neurons and oligodendrocytes. The cells can be used to treat some neural diseases such as stroke, multiple sclerosis, Parkinson’s and Alzheimer’s diseases.
The business is worth $14 million on the market, three times the $3.5 million in book value. Further drop thus possible but unlikely, especially considering the support is strengthening with each test and there is a strong historical support just a bit lower at 5 cents.
