Is Creative Medical Technology Holdings Inc (OTCMKTS:CELZ) A Rebound Play?

Creative Medical Technology Holdings Inc (OTCMKTS:CELZ) share price is showing signs of trading higher after coming under immense selling pressure from short sellers. While the stock is still languishing at all-time lows, a 60% spike and an increase in trade volumes continue to fuel the strong belief that the stock could have already bottomed out.Renewed investor interest in the stock, follows the announcement of positive response on the recruitment of physicians for the company’s Caverstem procedure. The company’s novel treatment of erectile dysfunction, using patients own bone marrow-derived stem cell, is the catalyst that continues to push the stock up the charts. CELZ Daily ChartHowever, with investors’ confidence on the stock at all-time lows, it will take more than the Caverstem news, for the stock to erase a good chunk of the losses accrued over the past year. The stock needs to close above the $0.02 mark, to be considered a bounce back play. A close above the $0.04 will go a long way in affirming the emerging uptrend.A close below the $0.01 mark could see the stock plummeting to its 52 week low.Before we carry out a detailed analysis of the stock, let us first understand what the company does in pursuit of growth and shareholders value.Creative Medical TechnologyCreative Medical Technology through its subsidiary engages in stem cell research and application, for the treatment of male and female sexual dysfunction, infertility, miscarriages and other related issues. The company lead program is currently addressing erectile dysfunction with the proprietary Caverstem procedure.Creative Medical Technology also intends to test and if warranted, market treatment kits under its infertility technology license.Recruitment of PhysiciansThe stock has shone to life on the company announcing positive response on the recruitment of physicians for the patented and clinically tested Caverstem procedure. The Caverstem procedure involves the use of patient’s bone marrow-derived stem cell to treat drug-resistant erectile dysfunction.Creative Medical Technology is currently offering the procedure to selected urologists across the U.S. Since the commercialization of the procedure began late last year, the company says it has received positive feedback from medical doctors in the Southwest United States.The company is currently recruiting doctors in Los Angeles, Orange County, San Diego and Las Vegas as part of an effort that seeks to broaden the procedure’s awareness.

“Patient understanding and interest in our stem cell technology has also been positive. The physicians involved with the Caverstem™ procedure are treating patients and as the patient outreach is expanded we are excited by the ongoing and increased growth in the number of patient’s seeking our treatment.”

What Next Commercialization of the Caverstem presents a unique revenue generating opportunity for Creative Medical Technology. Nearly 30% or 30 million people suffering from erectile dysfunction do not respond to drugs like Viagra and Cialis. In, patients with drug non-responsive erectile dysfunction, there is a deficit that Creative Medical Technology believes it will be able to address.Caverstem is a natural alternative that should be able to address the biological problem and in the process generate significant returns for the company. The unveiling of the procedure comes at a time when demand for stem cells procedures is rapidly growing.

“We are pleased that after several years of development and testing we are now realizing the overwhelming acceptance of our Caverstem™ procedure by highly credible physicians and their patients.” Said Thomas Ichim Ph.D., co-inventor of the Caverstem™ procedure and Director of Creative Medical Technology Holdings Inc.

Capital Raise Creative Medical Technology has been raising capital through the issuance of stock, to gain access to much-needed financing for development and commercialization of Caverstem procedure. Mid last year, the company entered into a debenture agreement with a lender for an aggregate principal amount of up to $400, 000 of which $360, 000 was received.In November, the company entered into another convertible more agreement for an aggregate principal amount of $58,000, for which $55,000 was received in December. The note incurs interest at 12% per annum and is set to mature in November of this year.Expected Stock PerformanceA 64% spike in share price is an indication that Creative Medical Technology could be in for an exciting ride after being in consolidation, last year. The Caverstem procedure is one of the catalysts expected to push the stock up the charts as investors take note of its capabilities in the treatment of drug-resistant erectile dysfunction.With about 30 million people struggling with drug-resistant erectile dysfunction in the U.S alone, there is a huge market opportunity that Creative Medical Technology can take advantage of, in pursuit of return on investments.That said, the stock look set to bounce back on investors taking note of the market opportunity at hand. However, the company has to do more on the commercialization front, if investors’ confidence on the stock is to tick up, from the current lows.We will be updating our subscribers as soon as we know more. For the latest updates on CELZ, sign up below!Disclosure: We have no position in CELZ and have not been compensated for this article.