US Stem Cell Inc (USRM)

[NoMoDo]

What I do know is people bought this stock on RMAT approval hype,

A lot of people did, but the real rise from .002 to .08 had nothing to do with RMAT.

At the time, the company was near bankrupt. It's major investor Northstar was suing them for non-payment of a major loan. The company had major toxic debt that was killing the share price so they could no longer pay their bills let alone do any FDA trials. When USRM got news of a buyout offer, Northstar refused to settle the lawsuit with a promise to pay from the new company. Instead they worked out a deal with USRM to put their person on the USRM BOD. He immediately eliminated the toxic debt. He cleaned up the balance sheet. He found a partner to open clinics on the partner's dime and USRM gets 33% of that income plus 100% of the test kit fees (required by all customers). This is what caused the major run up.

Then when USRM came into play, we shot up to .18 for a brief second and the momo players started leaving. As RMAT delayed, we settled back down to .08's again even though the company is now worth multiples of that value. Very few people were still in the stock based on RMAT.

When the blog was posted, it was an opportunity to short the stock on the "supposed" bad news. That play is now coming to an end and the stock will likely return to .06's and then .07's, and without any news, it will see .08's. As people grasp what Texas means to the stock - likely the first week of August, the stock will move up to it's real value.