The shares of Geron Corporation (NASDAQ: GERN) rocketed sharply higher on Jan. 23, when the Food and Drug Administration (FDA) granted approval for the world's first clinical trial of human stem cells. Now, GERN has collected an impressive year-to-date gain of 57.8%. However, CEO Thomas Okarma isn't feeling too complacent with his stock's respectable rally. He told Reuters Tuesday, "If this were a normal macro environment, our stock would have tripled with this kind of advance."

No doubt, the FDA's timing could have been better, since Okarma says more money is needed for academic stem cell research -- and demands on federal funding have rarely been greater. "There's no question that there are a lot of big fish in the Washington frying pan these days," commented the CEO. He's calling for the establishment of a presidential commission on stem cell policy to keep the industry on Washington's radar.

Looking for stocks that should benefit now that Senator Obama is officially President-Elect Obama? Many investors believe that liberals negatively impact stock markets in general and that the only companies to benefit from a liberal adminstration are those that stand to get tax breaks or incentives.

Personally, I don't believe that the market is going to go to hell in a handbasket just because Obama is now officially 'the man.' We have had some real rough times already and there are quite a few bargain stocks out there. An Obama victory looked more and more certain in the weeks approaching Election Day. There should not be a big negative reaction, because the markets will have already priced in the high likelihood of an Obama win. That being said, there should still be certain industries and stocks that are boosted more than others.

My pick for a strong industry under President Obama is the biotechnology sector, specifically those companies that work with stem cells. While not a major issue through the election cycle, Obama has generally favored the removal of federal stem cell restrictions, including research on embryonic stem cells. A few years ago, the Stem Cell Research Enhancement Act of 2005 was approved by both the House and Senate, but vetoed by President Bush. The House failed in its attempt to override the veto. Obama voted in favor of the measure in the Senate and it is not a stretch to think that in the next two years with a Democratically-controlled Congress that a similar measure would be brought up and passed without much opposition.

Osiris Therapeutics (NASDAQ: OSIR - option chain) is a leader in the stem cell industry, and currently uses cells harvested from adult bone marrow. OSIR has recently partnered with Genzyme (NASDAQ: GENZ- option chain) to sell two of its developing drugs internationally. OSIR retains the rights to these therapies in the US and in Canada. OSIR received $130M up front for these rights, but the agreement calls for more payments (up to $1.25B) depending on future sales.

MAJOR PAPERS:

• Last November, Google Inc (NASDAQ: GOOG) and 30 partners were said be developing a new type of handset using Android that was expected to revolutionize the industry. The first new phones were expected to be available in this year's second half but are now slated for the fourth quarter the Wall Street Journal reported.
• According to people familiar with the situation, the Wall Street Journal reported that Citigroup Incorporated (NYSE: C) will make sharp cuts in its investment banking division this week.
• The Wall Street Journal reported that Live Nation Inc's (NYSE: LYV) Chairman, Michael Cohl, stepped down down as a director and executive to end the strategy feud with CEO Michael Rapino. over how to pursue the "360 deals" with music superstars.
• The Financial Times reported that there are worries that investment banks will accelerate the pace of their layoffs this summer, after it became known that The Goldman Sachs Group Inc (NYSE: GS) gave pink slips to workers in its investment banking division last week. Goldman is now expected to lay off up to 10% of the workers at the division.

OTHER PAPERS:

• New Jersey put its $150M center for stem cell research on hold, the Star Ledger reported, eight months after ground was broken on the project.

MAJOR PAPERS:

• Barron's Online's "Weekday Trader" section said that Bankrate Inc (NASDAQ: RATE), Answers Corporation (NASDAQ: ANSW), WebMD Health Corp (NASDAQ: WBMD) and The Knot Inc (NASDAQ: KNOT) may be the next preferred takeover targets for Google Inc (NASDAQ: GOOG) and Microsoft Corporation (NASDAQ: MSFT).
• The Wall Street Journal reported that Brad Tierney is interested in Dow Jones and Company (NYSE: DJ), which in talks with News Corporation's (NYSE: NWS) Rupert Murdoch for a possible $5B sale.
• According to the Wall Street Journal, citing a person close to the deal, Deutsche Telekom (NYSE: DT) will acquire the Orange Netherlands unit of France Telecom for about EUR1.3B, and simultaneously sell Ya.com for EUR320M to them.
• The Financial Times reported that three separate research teams showed the embryonic stem cells can be created by reprogramming some of the genes in adult mice skin cells, without creating an embryo. The news will be well-received by opponents of embryonic stem cell research, but scientists said it is too early to tell if the technique can be used with human cells.

OTHER PAPERS:

• The Herald Sun reported that a new $237B Chinese state-owned investment fund may be interested in acquiring natural resources company BHP Billiton Limited (NYSE: BHP), according to Bell Potter research chief Peter Quinton.

MAJOR PAPERS:

• Barron's Magazine (subscription required) highlighted a number of possible M&A targets, along with a few stocks it believes to be undervalued:
• M&A is expected to continue in Europe: possible large cap targets include Barclays (NYSE: BCS), Deutsche Telekom (NYSE: DT), Deutsche Bank (NYSE: DB), ABN Amro (NYSE: ABN), Volkswagen (OTC: VLKAY), Koninklljke (NYSE: KPN) and Swisscom (NYSE: SCM); possible small-mid cap targets include Hellenic Telecom (NYSE: OTE).
  
• There may still be upside in shares of Xerox (NYSE: XRX), says James Benson, a partner and securities analyst at Harris Associates.
• Shares of YRC Worldwide (NASDAQ: YRCW) may be undervalued by as much as 50%, says Barron's "Bottom Line," which writes that shares could climb above $60.
• The Wall Street Journal (subscription required) featured an article on Pfizer's new CEO and his strategic plan.
• Pfizer's (NYSE: PFE) new CEO, Jeffrey B. Kindler, is preparing to detail his strategic vision for the company that will likely involve more job cuts.
• Hewlett-Packard (NYSE: HPQ) is claiming a nanotechnology research breakthrough that would bring big benefits in performance.
• According to a Nomura report, Sony Corp (NYSE: SNE) will reach only 75% of its global target for PlayStation 3 sales this fiscal year through March.
• The New York Times had an article highlighting the possibility of New York funding stem cell research.
• New York Governor Eliot Spitzer called for the passage of a $2B 10-year bond initiative for research and development, at least half of which would be set aside to pay for stem cell research.
• Citigroup (NYSE: C) may shorten its name to Citi and drop its umbrella logo.

OTHER PAPERS:

• The UK Times wrote that Ford (NYSE: F) may have trouble selling its Aston Martin unit after potential buyers found problems in the divisions books while doing due diligence.
• El Pais wrote that Fidel Castro is in "very grave" condition after three failed operations and complications from an intestinal infection known as diverticulitis.