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Obama stock: Stem cell research benefits Geron (GERN)

This post is part of a series in which TheStockAdvisors.com asked financial experts to name their top stock pick if McCain or if Obama wins the election.

"If Barack Obama wins the presidency, one under-the-radar play would be embryonic stem cell research; Geron (NASDAQ: GERN) is the current leader in embryonic stem cell research among publicly traded companies," explains trading and investing expert Bill Martin in his BullMarket.com.

"Embryonic stem cell research in the U.S. is not restricted in any way, as is often popularly believed in this hotly contested debate. The real issue at hand is federal funding, and whether federal taxpayer dollars should be used to help fund the research.

"Currently, federal funding is only available to firms that won't create embryos for use in scientific research or clone them for any reason, and that are working with stem cell lines derived from embryos destroyed before August 9th, 2001.

"In addition, the stem cell lines must have been obtained from 'left over' embryos created solely for in-vitro fertilization purposes from consenting donors without any financial incentive.

"According to a September 2003 NIH report, the only publicly traded company of the more than a dozen institutions listed with stem cell lines that qualified for federal funding was Geron, which has been a pioneer in the field since 1999.

"Embryonic stem cell research is among three areas of concentration for the biotech firm, and it has a large number of related stem cell patents. Some of its major areas of focus include spinal cord injuries, heart disease, and diabetes.

"If Obama takes office, there is a pretty good chance that he and the Democrat controlled Congress will offer government funding for embryonic stem cell research. If this happens, expect Geron to head higher."

Steven Halpern's TheStockAdvisors.com offers a daily look at the latest market commentary and favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.

Symbol Lookup
IndexesChangePrice
DJIA-93.7910,197.47
NASDAQ-17.882,149.02
S&P 500-11.271,087.24

Last updated: November 12, 2009: 11:23 PM

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