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Creative Medical Technology Holdings Inc. (OTCMKTS:CELZ) An Emerging Bounce Back Play

Creative Medical Technology Holdings Inc. (OTCMKTS:CELZ) An Emerging Bounce Back Play
Written by
Ryan Mitchell
Published on
March 29, 2018
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Creative Medical Technology Holdings Inc. (OTCMKTS:CELZ) has caught our attention, on growing investor activity around the stock. Trading volumes have spiked, a further testament that the stock could bottom out as investors take note of the company’s long-term prospects.While the recent momentum confirms our firm belief that the stock is due for a reversal after being in a bear run over the past one year, it may be wise to wait for further confirmation. First, the stock needs to rise on huge volume and close above the $0.02 mark to be considered a good reversal play.CELZ Daily ChartConsidering improving investor sentiments, it may be a matter of time before the stock makes a push for the $0.02 mark. On the downside, immediate support is at the $0.01 mark, below which the stock remains susceptible to further declines in the continuation of the long-term bear run.About Creative Medical TechnologyCreative Medical Technology casts itself as a commercial-stage company focused on stem cell research and applications, for treating male and female sexual dysfunction, infertility and other related issues. It is currently conducting a clinical trial study for erectile dysfunction treatment.The company also develops stem cell therapies for treating brain injuries as well as neurodegenerative diseases.CaverStem Stem Cell Procedure OpportunityCreative Medical Technology is the subject of renewed investor interest after achieving significant milestones on the reduction of bad debt over the past year. The company has already extinguished a deficit of $255,000 from early round lenders, as it continues to clean its balance sheet of toxic debt.While debt always adds some baggage to company's books, Creative Medical Technology has been able to advance its technologies with the financing. The company is now nearing commercialization of its technology, which should pave the way for it to generate significant value and free cash flow after years of investments.The company has already begun marketing its lead CaverStem stem cell procedure for erectile dysfunction in California. Plans are also underway to unveil the procedure at the upcoming American Urological Association conference in May, as part of an effort that seeks to broaden awareness to more clients and users

"Our cutting-edge technology in autologous stem cell treatment for erectile dysfunction is anticipated to be received by the urologic community with great enthusiasm. Our CaverStem TM procedure represents an all-natural alternative for those patients resistant to the use of PDE5 inhibitors such as Viagra and Cialis," said Thomas Ichim PhD, Founder and Chief Scientific Officer of Creative Medical Technology Holdings, Inc.

CaverStem procedure presents a unique opportunity with enormous potential, given that about 30% of the 30 million men suffering from erectile dysfunction are resistant to PDE5 inhibitors, commonly used to rectify the situation.Creative Medical Technology continues to receive positive responses from the urology community a further testament of the opportunity at stake on full launch.In addition to pursuing opportunities on the treatment of erectile dysfunction, Creative Medical Technology has moved to expand its business portfolio in the medical space. The company has formed a new subsidiary dubbed CerebroStem LLC that will focus on the use of stem cell to treat brain injuries and neurodegenerative diseases.The subsidiary will initially focus on the treatment of radiation-induced brain damage, a significant cause of cognitive dysfunction in brain cancer patients. The unit will also pursue other areas of brain degeneration, including stroke and Parkinson disease.To spearhead the company’s effort on this front is an AmnioStem Cell product, designed to offer a potent platform for developing second-generation stem cell therapies. Dr. Santosh Kesari will serve as the Chief Medical Advisor for the subsidiary.

“The desire of Dr. Kesari to combine his strengths with ours in the area of neurology is a major validation of the potential of the AmnioStem™ stem cell. For the past three years, we have been developing amniotic stem cells as a therapeutic product based on their potent regenerative activities. We believe that under Dr. Kesari's guidance, these cells will be capable of addressing numerous unmet medical needs in the area of neurology,” said CEO, Timothy Warbington.

What Next For Creative Medical TechnologyStem cell technology adoption is gaining momentum in the U.S at a time when Creative Medical technology already has a product on its hands for pursuing market share. CaverStem is a procedure that has the potential to generate significant returns for the company taking into consideration the number of men suffering from erectile dysfunction.That said, Creative Medical Technology remains well positioned to generate significant value given its first market mover advantage. Having cleared a substantial amount of bad debts, the company remains well positioned to advance commercialization efforts in a bid to generate revenues after years of investment.The company’s outlook should continue to improve given the recent developments, which should have a positive impact on share price value going forward.Disclosure: We have no position in CELZ and have not been compensated for this article.

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