Power3 Medical Products, Inc. (OTC:PWRM) The Cumulative Effect Still Holds
02 Dec 2010

The share price of Power3 Medical Products, Inc. (OTC:PWRM) stock exploded suddenly last week. The explosion continues this week as well, but as there is no official news recently all points that some newsletters reminding about the announced in September planned acquisition are causing the rush.

Yesterday was another winning session and the PWRM share price surged even higher during the day, breaking also the $0.05 resistance. The stock closed then at $0.042, or 5% higher than the previous day, and the trading volume of 4.4 million was about half of the volume realized when the first reminding newsletters were sent last Tuesday.

In September the company announced its plans to acquire Rozetta-Cell Life Sciences, Inc., a biotechnology company specialized in the delivery and imaging of stem cells. That seems to be considered great news by the market, the only strange thing is that on the day of its announcement PWRM share price could barely overcome the 3 cents level. Now, the newsletters that keep coming out this week as well have managed to make traders believe that the closing of the acquisition should be announced any time.

That “pending news” improved PWRM technical parameters and made it look like a strong buy, but unfortunately the fundamental base is still missing. The company itself has not given any details on the deal, and has only stated that it should be either closed or terminated by the end of the year. Furthermore, the terms of the agreement are expected to cause massive dilution for the current shareholders.

Not counting the intended new asset, Power3 Medical had at the end of September minor assets, much larger debts and still no marketable products.

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