Vericel Corp. (VCEL)

[commoncentsinvestor]

Many times when a stock a person owns has a down period it is easy to get angry or frustrated. Those who make buy & sell decisions based more on emotion than logic can often make incorrect decisions during these periods. Right now there are people claiming MACI is a fraud, the company is a scam, and the management of VCEL doesn't know what they are doing. All this because the share price has been going down.

I suppose it is possible that all those things are true, but there doesn't seem to be any evidence for those claims. Better to look at more likely reasons for the drop.

A good starting point would be to take a look at the Biotechnology index. If you do you would find that on January 10th it was at 2997 and today it is at 2804. That's a drop of 193 points or 6.4% in just 2 weeks. During the same period VCEL has gone from 2.85 down to now at 2.50. A drop of .35 or 12%. Generally microcaps like Vericel can go up or down 3 to 5 times what their index does. So a 2 times drop is actually not bad.

So a rational conclusion might be that the drop has more to do with market sentiment towards the industry as a whole rather than something horrible specifically about this company. Just something to think about.