Stem Cells and the 2008 Election

Like any good forward-thinking investor, here at the Stockmasters we’re trying to think of what is in store for America in 2009, when our next president takes office. I found what looks like a win-win situation for the Stem Cells Sector. Read on to find out: 

Obama’s Stance on Embryonic Stem Cell Research

“My hope, and the hope of so many in this country, is to provide our researchers with the means to explore the uses of embryonic stem cells so that we can begin to turn the tide on the devastating diseases affecting our nation and the world.”

HR 810, The Stem Cell Research Enhancement Act of 2005, a bill to amend the Public Health Service Act to provide [federal funding] for human embryonic stem cell research. Roll Call Vote #206, July 18, 2006, Senator Obama voted – YES

S 5, The Stem Cell Research Enhancement Act of 2007, a bill to amend the Public Health Service Act to provide [federal funding] for human embryonic stem cell research. Roll Call Vote #127, 4/11/2007, Senator Obama voted – YES

McCain’s Stance on Embryonic Stem Cell Research

HR 810, The Stem Cell Research Enhancement Act of 2005, a bill to amend the Public Health Service Act to provide [federal funding] for human embryonic stem cell research Roll Call Vote #206, July 18, 2006, Senator McCain voted – YES

S 5, The Stem Cell Research Enhancement Act of 2007, a bill to amend the Public Health Service Act to provide [federal funding] for human embryonic stem cell research. Roll Call Vote #127, 4/11/2007, Senator McCain voted – YES

Fellow Stockmasters, as November draws near, more and more investors are going to start paying attention to the sectors that could benefit from the Presidential Election. It’s pretty evident that Stem Cell companies are going to benefit tremendously – regardless of the outcome of the Election.
 

Back in January of 2007, shares of stem-cell companies rallied, a reflection of hopes that a newly Democratic Congress would make good on its promise to lift certain restrictions on the public funding of embryonic stem-cell research put into place earlier this decade by the Bush administration. What investors didn’t realize is that President Bush had no plans to change his ways, and he has continued to veto such legislation as he had in the past.

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Unfortunately, investors jumped the gun – once the excitement of the Democrats regaining control of congress for the first time in 12 years wore off, so did the prospects for Stem Cell Research. Until now.

Here are the companies that we think are worth a look:

Osiris Therapeutics, Inc.  (Public, NASDAQ:OSIR)

StemCells, Inc.  (Public, NASDAQ:STEM)

Genzyme Corporation  (Public, NASDAQ:GENZ)

The downside -when you're buying stock, there's almost never a sure thing. You never know; McCain or Obama may change their mind about Stem Cells once they take office. Not to turn this into a politically opinionated article, but I would guess that McCain would change his mind before Obama.

Disclaimer: The author owns no shares of the securities mentioned in this article

Article written by Eric Cheshier

Co-Founder of theStockMasters.com

If you liked this article, Eric Cheshier also contributes to the Master Picks Newsletter and the Quant Method , only available at WallstNewsletters.com.