US Stem Cell Inc (USRM)

[Dragon Lady]

Low volume = shares have value? When did that become the normal? Low volume is typically known as being ill-liquid and it not a sign of a "good thing" for a stock from everything I've read and studied?

If one wanted to sell even a moderate position at these volumes (last few days are lucky to crack $5K maybe $6K total dollar vol in a trading day)- the price would get crushed via the selling IMO. Stocks with high volume are "strong" and safer, not thinly traded, nano-caps, where they often sit (like this one) w/o a single trade crossing the tape for one hour or more. Two days ago, it took almost 15 minutes after market open for a single trade of about $500 bucks to post. Ill-liquid typically = violent price swings and big down days if even a modest seller wants to unload a position.

Pull up the 3 month chart: that's what ill-liquid looks like. Huge price swings and days where it will lose 20 to 30% faster than one can blink.

The "value" of the shares is about 2.5 to 2.75 cents. That's the "value" as of right now.

Here's what the SEC site has to say under it's "warnings" and "risks" related to micro and nano cap stocks:
http://www.sec.gov/investor/pubs/microcapstock.htm

"Because many microcap stocks trade in low volumes, any size of trade can have a large percentage impact on the price of the stock."
In other words, "low volume" does not = "shares have value"

Or, here's from the BHRT own 10-K filing, PAGE 46:
"Future issuances of shares for various considerations including working capital and operating expenses will increase the number of shares outstanding which will dilute existing investors and may have a depressive effect on the company's stock price.

There may be substantial dilution to our shareholders purchasing in future offerings as a result of future decisions of the Board to issue shares without shareholder approval for cash, services, payment of debt or acquisitions.

There may in all likelihood be little demand for shares of our common stock and as a result investors may be unable to sell at or near ask prices or at all if they need to liquidate their investment."