Laura Cadden says Aastrom Biosciences, Inc. (NASDAQ:ASTM) is one of the hottest biotech stocks priced under $5. The company hopes to use its proprietary Tissue Repair Cell (TRC) technology to revolutionise treatment for heart disease. And it is making good progress through the trial phases. Laura says Aastrom is poised to make 20% gains in six months

This from Today’s Financial News:

Investors expect President-Elect Obama to make good on his campaign promise to lift restrictions on federally funding human embryonic stem cell research. House Speaker Nancy Pelosi has vowed to introduce legislation for a regulatory framework necessary to enable expanded stem cell research.

Biotechnology experts consider both the regulatory framework (to underpin clinical trials) and the additional funding to be crucial to the future of the American bio-pharma industry. In fact, it could ring in a new era for American stem cell companies. Many foreign stem cell researchers already fear that even private and institutional U.S. funding may be “repatriated” to U.S. companies.

No matter how long it may take for federal dollars to have a measurable effect on companies’ actual bottom lines, stem cell research will make headlines in the weeks ahead.

This is just the kind of opportunity we at TFN… and our premium service Hot Stock Confidential… are looking for. Right now, we’re keeping our eyes on literally dozens of similar opportunities.

As a general rule, the equity recommendations we select for Hot Stock Confidential Members are stocks we’d buy ourselves, even in a “normal” market… and would have no problem recommending to our relatives. They’re companies whose insiders are buying… that have easy-to-understand business concepts, established markets, growing revenues and unique products. Some are making great progress in the fields of biotechnology… genetics… medical diagnostics. Long-term, they will make good investments.

But in the meantime, every small breakthrough… every successful step in the approval process… holds the potential for amazing short-term profits. Especially in volatile markets like this!

In many instances the daily trading volume of these companies is so light, a single story in the mainstream media… an Internet rumor… a line dropped on a bulletin board… could double or triple their average daily trading activity and push stock prices out of our advisable buying range.

Use the current market slump to position yourself for publicity-driven price spikes in some of the best-situated stem cell stocks.

We’ve found three of the hottest stem cell stocks around. Each has winning potential… and is currently selling at bargain rates! Invest now… and you could see gains of 50%, 100%, even 200% within the first two quarters of 2009.

These stocks are priced below $5 each. Even a moderate investment may pay off handsomely if the reinstatement of federal funding triggers the wave of investor interest we expect it to!

HOT STEM CELL STOCK #1: Aastrom Biosciences, Inc. (NASDAQ:ASTM)

Over 5 million people in the U.S. suffer from cardiomyopathy (heart muscle disease). The condition is a contributing factor in at least 250,000 deaths each year.

Dilated cardiomyopathy (DCM) is the most common form of the disease. More men suffer from it than women. It usually occurs in those aged between 20 and 60 years — though even children can have it. In fact, my own brother is a sufferer and I lost a grandmother and uncle to DCM.

Patient numbers are bound to increase as the U.S. population ages.

But one company is hoping to reduce the mortality rate through revolutionary treatments.

Aastrom Biosciences, Inc. develops products for the repair or regeneration of human tissue. Aastrom’s proprietary Tissue Repair Cell (TRC) technology involves autologous, mixed-cell products containing stem and early progenitor cells to treat cardiac and vascular tissue regeneration.

Mending the Ailing Heart

The company has just launched Phase II IMPACT-DCM clinical trials for the evaluation Aastrom’s Cardiac Repair Cells (CRCs) in the treatment of dilated cardiomyopathy (DCM) or congestive heart failure.

The CRCs are delivered surgically, directly into the heart muscle.

The company intends to enroll patients with end-stage DCM. Half will have ischemic DCM (often caused by repeated heart attacks) and the other half, non-ischemic DCM (where the damage is due to hypertension, viral infection or alcoholism).

Orphan Drug Designation

Early indications from a “compassionate use” case in Germany are promising. (“Compassionate use” means an experimental therapy that is not yet officially approved but permission has been granted to treat a patients who has run out of other options)

As a result, the U.S. Food and Drug Administration gave Aastrom’s CRCs the Orphan Drug Designation. That allows for an expedited FDA review, a reduction of filing fees, possible tax credits, and the right to seven years of marketing exclusivity once the product receives FDA approval.

The current market has battered down stocks like this micro cap. As a matter of fact, the Nasdaq has given Aastrom until March to bring their stock price above $1 for 10 consecutive days. Otherwise, Aastrom will lose their listing.

Of course, they aren’t the only company in this situation. But with the increased interest in stem cell research, potential federal grant money coming, and a treatment that — if it works — could change the lives of millions, I recommend you buy shares of Aastrom Biosciences, Inc. at or under 85 cents.

I expect this stock to go up at least 20% in the next 6 months.

PS. This stock pick is part of a free special report for Hot Stock Confidential subscribers, which offers two more hot stem cell stock picks and much, much more. Click here for more information.

Source: The 3 Hottest Stem Cell Stocks Under $5