STEMLIFE Skyrocket without anyone notice

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Jul 31 2007
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It was merely about two-weeks ago when FinanceTwitter wrote about TMC Life Sciences Bhd (KLSE: TMCLIFE, stock-code 0101) stock any justify why you should own it in your portfolio. Yes I know the stock has not move yet (you’re really impatient when come to stocks investing, aren’t you?), in fact it has consolidated from the peak to current RM1.38 per share, well above the support of RM1.24. Isn’t this a good level for you to accumulate, you greedy investor (or rather punter?) who always thinks of making fast money overnight?

Well, this post is not to talk about TMC Life but rather on StemLife Berhad (KLSE: STEMLFE, stock-code 0137). Between the two devils, StemLife’s stock obviously performs better. Just to refresh, it was about two-weeks ago on the same article, I was nagging about how I should not have sold my positions in StemLife, even though I’m still holding a very small amount of shares as of now. On the date of that article being written, the stock price of StemLife was about RM4.00+ per share. Can you please go and take a look at the price now?

But if you have found FinanceTwitter’s blog and read the article on why you should invest in TMC Life and StemLife stock back in Jan 2007 when it was trading at about RM1.00 per share, you would have gained a whopping 400 percent in profit if you had just follow the recommendation blindly. If only life is so predictable, it would be a wonderful world, won’t it?

StemLife Stocks ChartAnyway, looking at the momentum and technical analysis, you would notice StemLife has been trading within a narrow but uptrend range without fail since it broke out from the resistance of RM2.60 per share in 21st May 2007. The stock is trading at RM 5.75 per share at the time of writing. Will it reaches RM7.00 or even RM8.00 per share? With the amount of 5 cents on every next bid after RM5.00 per share, it’s a matter of time before the target is reached, provided the trading range is not broken.

Having said that, aren’t StemLife expensive at the current share price? You bet, it’s obvious the stock is being “fried” but considering the stock has Goldman Sachs (8.85% stake) and JP Morgan (4% stake) in its shareholders list (as of Mar 2007), it’s not that difficult to convince others the stock could goes up further. The latest would be Capital Group International Inc. which acquired 5.27 percent stake on 4th July 2007. Furthermore StemLife is the main player in the stem-cell storage in town with TMC Life set to kick-in sometime in September 2007 to give StemLife a run for some money. It was said that come 2008, the number of players would increase to 7 (seven) in the stem-cell banking business giving more competition.

StemLifeRegardless whether the StemLife is frying the stock to make fast bucks or knowing in advance that it might be “acquired” soon (please don’t drop your jaw in surprise *grin*), the shares will continue to attract a small of followers who are laughing all the way to the bank. I mentioned small followers because the daily volume is negligible. I won’t complaint a word if you start to buy StemLife and help push the price higher. Of course I would hope the stock will skyrocket to RM10.00 per share but then I should accumulate in stages on TMC Life, don’t you think so?

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