Big plans by tiny NeoStem ( (NBS)
), which collects and stores adult stem cells for future medical use, have helped catapult its stock to 2.27 a share from 50 cents on Mar. 9. NeoStem applied for patent protection in May for a technology that allows use of an adult's stem cells in cosmetic surgery. And it took a 51% stake in a profitable Chinese drug company with $60 million in sales to distribute stem cell therapies in China. In April it raised $11 million in China to improve its balance sheet. It also signed a 10-year pact on June 15 with China's Enhanced Biomed Holdings to build stem cell treatment clinics in China. Rachel Kirsch of Pro-Active Research Group (it did business with NeoStem) rates the stock a speculative buy, seeing it at 5 in a year. Gary Goldstein, president of Mithra Research, says China operations should yield revenues of $50 million a year. His 12-month target: 7.
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