Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
So what: The clinical trial of human embryonic stem cell (hESC)-derived oligodendrocyte progenitor cells will gauge its safety in patients. This is a milestone in possibly finding a cure for paralysis and a big step ahead of the competition for Geron.
Now what: This is the first step in a long road for Geron in clinical trials. The company has very little revenue and is spending about $10 million per quarter in cash flow, so the trial is critical for the company's long-term viability. Today's move is a reaction to great news, but there is a long ways to go for Geron. I would be cautious about buying on the bounce in this stock.
Interested in more info on Geron? Add it to your watchlist by clicking here.
Fool contributor Travis Hoium does not have a position in any company mentioned. Try any of our Foolish newsletter services free for 30 days. True to its name, The Motley Fool is made up of a motley assortment of writers and analysts, each with a unique perspective; sometimes we agree, sometimes we disagree, but we all believe in the power of learning from each other through our Foolish community. The Fool has a disclosure policy.