Yesterday, the stock price of Cord Blood America, Inc. (OTC:CBAI, CBAI message board) continued its sharp surging up that started after the company announced on Monday to have made a step ahead of its competitors. The shares are now overbought and their value got almost doubled this week.
CBAI jumped up another 33.33%, crossed the 200-day moving average as well and closed the session at $0.0072 on the highest trading volume for the past six months.
Over 266.5 million shares were traded, improving even more the technical indicators and extending the effects of the latest announcement by the company.
On Monday this week, Cord Blood America said that it is the first cord blood stem cell storage company that has become an alliance partner of the national organization America's Health Insurance Plans (AHIP). AHIP provides insurance coverage for more than 200 million people in America. The market's excitement got high, as this should give the company the chance to meet large insurance companies and make them aware of the importance of stem cells storage, and probably get its services covered by the insurers. Of course, that is probably expected to grow the revenues at a higher rate and eventually make the business profitable.
At the end of September, Cord Blood America also filed the confirmation for their previously announced acquisition of an Argentina-based cord blood bank, also part of the company's strategy to leverage its growth. According to the SEC filing, the acquired company is the second largest cord blood bank in Argentina with 12 branch offices and has ambitious plans to expand in other South American countries.
Strangely, the share price of CBAI did not change its general downtrend after the announcement, which makes the rise from this week look like it could not hold for long. Maybe because at the end of June Cord Blood had enormous $5.5 million working capital deficit and because some trading alerts have been enhancing the demand for the shares this week.
http://www.hotstocked.com/article/3271/...otc-cbai-keeps-surging.html