Biotech firm's balance sheet smells suspicious.
Advanced Cell Technology (OTC: BB: ACTC, Stock Forum) recently had a private placement which brought in just over $3 million. It's a good thing. Otherwise the company might not be around.
ACTC's business is working on human embryonic stem cells. Whether it is doing a good job with that work is open to question. An "expert" who follows the company recently said the "ACTCellerate technology will greatly hasten the translation of human embryonic stem cell-based therapies into safe and effective products." So, why does the company trade at just over eight cents down from a 52-week high of 78 cents? The answer to that is not in any of the ACTC PR.
ACTC accounting practices leave something to be desired. The Audit Committee at the firm recently said that certain of the company's financial reports were off because of improper accounting for debentures and warrants.
Last month, ACTC announced it could not file its 10Q on time. A look at the 10K shows that the number of warrants and options outstanding represent huge dilution potential. In 2007 ACTC lost over $23 million.
A good stock to bury before it starts to stink.
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