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Beware Buying Biotech on Basis of Ballyhoo

Stock of biotech Aethlon Medical enjoyed a big ride this week on the basis of a news release touting a product, but the bloom is already off the rose. On Tuesday, the tiny company sent out a release saying that its Hemopurifier product "is effective in capturing the current pandemic strain of the H1N1 swine flu virus," according to the release. The study was purportedly done "by third party researchers approved by the Uited States Department of Health and Human Services," said the company. The stock soared Tuesday. At one point it was up more than 50%. It backed off, but by day's end it settled at 36 cents, up from 29 cents. Today (Oct. 21), it closed at 32 cents.

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Stock of biotech Aethlon Medical enjoyed a big ride this week on the basis of a news release touting a product, but the bloom is already off the rose. On Tuesday, the tiny company sent out a release saying that its Hemopurifier product "is effective in capturing the current pandemic strain of the H1N1 swine flu virus," according to the release. The study was purportedly done "by third party researchers approved by the Uited States Department of Health and Human Services," said the company. The stock soared Tuesday. At one point it was up more than 50%. It backed off, but by day's end it settled at 36 cents, up from 29 cents. Today (Oct. 21), it closed at 32 cents.

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