American Cryostem Corp (OTC:CRYO) has been facing an obstinate market in the last couple of days. Specifically speaking, CRYO stock has been recording more and more empty session and on top of it all this ordeal has been accompanied by a decreasing share price.
Looking back at September, the common investor can see the CRYO was sold at $2.25 then. Now that near two months have passed since then, CRYO is at the threshold of the penny stock area.
Even the announcement that this month CRYO had opened a Stem Cell Processing and Storage Laboratory couldn't stop the tremendous devaluation of the stock.
A probable factor which can explain the current situation with CRYO is the increase in the number of outstanding shares which is shown by the last quarterly report of the company.
The 10-Q filed in August shows that at October, 2010 the company had 5.5 million outstanding shares. However, nine months later the number of outstanding shares had reached 2011. This is more than a fivefold increase.
As the financial report shows most of the new shares were issued for the purchase of assets in April this year. In addition 2.2 million shares were issued for a private placement.
It is very likely that it is the dilution caused by the newly issued shares which lies behind the downtrend of the stock. Moreover, it is obvious that the general interest towards CRYO stock is very low as the daily average volume is only 1350 shares, which is another reason for the decreasing share value.
Nows here's a stock thats trading over 1 dollar.
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