US Stem Cell Inc (USRM)

[Dragon Lady]

Look at the volume on these huge sell-dump days. It's done almost no volume for a month- just sitting parked and flat lining often, then when it sells off it's gone 1.5 million shares plus.

This isn't retail selling IMO. This is just good ole dilution dumping- most likely the "financing" houses, the convertible debt deals- doing what they do.

Just read the terms on this most recent Magna deal- horrendous, and for about a lousy $200K in cash. It will end up putting about 30 MILLION shares at a minimum on the market, with a price only 1 cent, maybe even lower. That's what dilution and toxic debt financing does.

Figure out those holders of shares who get them for like 1 cent- what's their profit margin even if they sell at 2 cents or 1.75 cents. It's like having an ATM machine- you're doubling your money or making 75% on it, often in a period of a few months, maybe 6 months tops. That's a staggering return; an extremely high profit biz, but risky and shady a bit.

Dilution has consequences- that's what this is IMO. Nothing more complicated than that, the way I see it. Also, lack of confidence that this company will ever move forward something like an actual phase III, FDA level trial- they're simply broke, and when any money does/has come in so far, it's been passed straight to the few insiders and never went to any "trial" or whatever. The total monthly R&D budget has been a pittance of maybe $5K a month in these last 10-Q filings- noise level money. The same amount they paid smallcapvoice for a month of penny stock promotion service- to give some perspective.

And now all this "medical tourism" stuff and junk- it doesn't make any sense IMO. What's it supposed to amount to? Are you a legit FDA "trial", product-to-market company with serious, high quality R&D taking place- or are you now in the class of folks seen on something like the 60 Minutes documentary- offering unproven and unsafe, non FDA approved "treatments" and what not, in 2nd and 3rd tier nations, poor nations mostly, for cash? Which is it- I don't get it anymore? What's the plan?

That's my 2 cents. It's in a serious down trend and a "big boy" or "big boys" plural, are unloading some holdings- it would take tremendous buying pressure to overcome the 10's and 10's of millions of low priced share "overhang" this one's got sitting out there.