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  • stem_cur stem_cur May 6, 2013 2:36 PM Flag

    ....Sell ACTC.......Buy STEM.......Article..... STEM Possibly Worth 100x Current Valuation

    StemCell Inc. CEO building a BLOCKBUSTER company (Seeking Alpha article) Excerpt...

    Sam: Do you think your stock will be a hundred times the current valuation in five years? Why?

    Martin: First of all, I am firmly of the view that, if you just look at Stem Cells, Inc.'s current valuation today, we are significantly undervalued relative to our current comps. We're anywhere from 2Xto 4X times undervalued, so view just closing that gap, there's a 2-4X opportunity for shareholders.

    It's hard to determine what our future a valuation will be, but I'll just say this … our valuation in the next five years will be a function of how well we execute our translational agenda in spinal cord injury, in the brain, in the eye with age-related macular degeneration, and in Alzheimer's.

    Within five years, we will have a lot of answers in the clinic. The valuation will be a function of how meaningful and how relevant the clinical data will be. I'm confident that within the five years … I don't know which month or year it will happen … but, we will reach the tipping point in terms of clinical evidence that we are onto a real winner here.

    I don't know whether the data from one of our trials alone will be sufficient to tip the scales or whether it will require a composite of data from all of the trials that will be completed along the way. However, in my opinion, I am confident the tipping point will come.

    Sam: Thank you, Martin.

    Martin: I'll just add one other thing, Sam. Valuation will also be affected by whether or not the data entices potential partners to step into the story and help us complete the registration trials that will be required to bring the products to market. There's no question that we are a very attractive investment opportunity. I don't know whether the multiple will be 2x, 4x, 40x or 100x but I really believe, with the market's support and patience to allow us execute our game plan, our investors will be well rewarded.

    Sentiment: Strong Buy

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