US Stem Cell Inc (OTCMKTS:USRM): Look Beyond The Metrics

Sometimes what's going on at chart level, or with a company's financials, or with the way a company's management is communicating with shareholders, or an array of other, similar inputs, can obscure underlying fundamentals. This is especially true in the development stage biotech space. Things like the potential for a reverse split, or dilution risk, while perfectly justifiable as inputs, often attract more attention than day to day operational progress, and make companies that might be very attractive long term value propositions look like just the opposite.One example of exactly this concept is US Stem Cell Inc (OTCMKTS:USRM).The company has seen some pretty substantial swings over the last few weeks, and currently trades or around $0.02 a share – down 60% on a late February peak. It's actually run up considerably this year, but the general perception of the company is that it's plagued by exactly those risks mentioned above – RS, dilution, management inconsistency, etc. – and as such, makes for a very risky long term prospect.Take a look under the hood, however, and this company looks like a real game changer.For those not familiar with US Stem Cell, it's – as its name suggests – a stem cell company that is working on a host of different therapies for various indications, but primarily (and what underpins it's lead therapy) a fat based stem cell treatment. Basically, the company takes a sample of fat, which reportedly has up to 500 times more stem cells in than currently widespread use sample (read: bone marrow) and formulates into a treatment tailored to the patient it's treating. If the patient has knee joint trouble, it's injected directly into the knee. If the patient has spinal problems, it's introduced in a region whereby the stem cells will travel down the spine. Blood problems, introduced through IV, etc. Right now, the approach isn’t FDA approved, and so each of the patients that the company treats are volunteer, compassionate therapy cases. In other words, patients that have waived claim rights to any negative repercussions of therapy. It's a bit of a wild west space, but some of the results are incredible. Patients that have been unable to walk are now walking. MS sufferers are recovering. Diabetes sufferers that are about to lose feet or legs because of ischemia have been removed from the amputation list last minute as a result of the therapy that US Stem Cell provides.It's tough to do it justice here, but for readers looking to gain some insight, we recommend watching this presentation. It's company CSO Kristin Comella, a global stem cell and regenerative medicine expert, explaining what the company does and what it has achieved. It's well worth a look, and offers exactly the sort of perspective needed to be able to look past some of the metric based concerns.So what's the business plan?This company wants to get its treatment FDA approved in a variety of indications. This is going to be expensive, and take time, and there's plenty of risk rooted in both these facts. It's got a wealth of legacy data in place that demonstrates efficacy, however, and the safety profile of the therapy, which spans 6000 cases in various indications, is squeaky clean. Some short term headache problems, a skin infection that resolved with antibiotics, a quickly resolved pulse elevation, that sort of thing.In other words, while there's cost and time risks, the data suggests the therapy is both safe and effective, and we think this makes the risk worth bearing. We're not naïve, of course, and we know that the data in place is worthless outside of anecdotal viewpoint. Anecdotal viewpoint is often where these game changing therapies begin however.Markets have run this one up on basically no news, and the most reasonable assumption is that smart money is waking up to US Stem Cells potential.Given this assumption, and at its current market cap – just $1 million – we think this one's well worth a look.Again, don't take our word for it – take a look at Comella's presentation.We will be updating our subscribers as soon as we know more. For the latest updates on USRM, sign up below!Disclosure: We have no position in USRM and have not been compensated for this article.