Those who have followed Sirtuin Investor understand that one of the key aspects that make Cytori Therapeutics a compelling investment, aside from it's platform for regenerative medicine therapies is the
beauty of it's story. Although the science behind the platform is complex and the result of decades hard work and hundreds of millions of dollars in R&D spending, the story is simple and has mass appeal to a John Q. Public. It's a story that can be broken down into a simple 4 step process.
- Extract fat from the body.
- Extract a concentration of stem and regenerative cells from a portion of the the fat.
- Mix those "miracle"regenerative cells back into the fat.
- Insert the enriched fat back into the body to cure or treat multiple afflictions.
Its a story that generates excitement and amazement and rightfully so. It's also a story that plays well into the media. Throw in the angle about natural breast augmentation (no more implants!) and you have a recipe for media hype. It doesn't take a genius to understand what media hype can do to a stock price even WHEN the underlying story is unsustainable, which does not seem to be the case here..
We have already seen several local news broadcasts, a few posted on this blog, that indicate that the Cytori story is starting to go viral. Here's just one more that was recently shown on NBC in Northern California -
Click Here. As mentioned before on this blog, this is the type of story that can lead to the Holy Grail of Investing: IRRATIONAL EXUBERANCE. We are not there yet given Cytori's huge potential but when it comes you'll know.
As always, everyone is obligated to do your their own due diligence.
2 comments:
What do you see for Cytori in the next couple weeks? Months?
From a business standpoint, the next few weeks and months should be exciting. The one year clinical results of Apollo Phase I clinical trials should be released to the public no later than May 28th. I expect that these results will show dramatic improvement for treated patients versus the placebo control group. There is also the FDA approval process of the flagship technology of Cytori. called the Celution. Predicting the time frame for FDA approval is far more difficult...could be within a few months could be more than a year. There is also the possibility of a joint venture with a large medical device or drug company for one of Cytori's many treatment indications.
Meanwhile, I expect more stories of patients worldwide, that are already being treated, to continue to come to the public's attention and generate further interest and excitement. From heart patients to all natural breast augmentation to facial rejuvenations, all very large markets.
With regard to short term stock price performance, all the factors I mentioned above are potential positives, in my opinion. However, the overall stock market performance and extraneous global financial conditions for the next six months are also factors that are difficult predict but important nonetheless.
Do your own due diligence.
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