Welcome grass1973. The place I usually begint my DD is with the quarterly reports and reading the transcripts of the earnings conference calls. A lot of good info there, but probably not as interesting as the message boards for a non-business person. I’m not sure what you mean about “management and the CEO.” Could management be better? Maybe. They certainly could be a lot worse. But really, how many top notch management teams do you see in nano-cap companies?
In the 5 years this management team has been here, they have invested in and improved their product offerings, and repositioned them to be more client focused. This has been a very good business strategy and they have earned an excellent reputation, developed long-standing relationships with all of the top names in the cell therapy and pharma industry, and now have established a commanding leadership position and a very long list of loyal clients. This year revenues have increased over 50%, they have reduced expenses, increased margins, transitioned outsourced sales and marketing staff in-house, prepared for at least 2 commercial launches, and hired executives to focus on landing large pharma and consulting contracts. And yes, they have landed 68 new biopharma accounts, netted 66 new clinical trials, and signed the first 2 commercial CAR-T contracts this year. How’s that for “executing a successful business plan?”
Yes, there are some here who are complaining that management is not providing enough information during the conference calls to maintain the stock price It’s a legitimate complaint, but that’s not really management’s job is it? I think in general, some analysts like to be spoon fed earnings estimates from the company rather than doing some of the work themselves. But in this case, it’s difficult to project earning for Cryoport right now because they are still at the developmental stage and transitioning into a commercial stage company and earnings can be unstable and analysts are a little more dependent upon guidance from management. Almost 75% of their revenues are from clinical trials which can vary widely, and management hasn’t given the exact figures to be able to accurately calculate expected revenues from these trials. In addition, management has been rather tight lipped about some of the critical aspects of the recent commercial contracts they have signed. The timing and amount of expected revenues will help analysts accurately project revenues in the following quarters and years and write reports and advise their clients to purchase the stock which supports the price. The problem is that Cryoport supports a number of very large clients who are competing directly with each other and therefore cannot disclose all the information that analysts and investors would probably like.
In my opinion, Cryoport’s management is decent, and is not the reason the stock price has fallen. If management concentrates on running the company, and “executing a successful business plan” as you say, the stock price will take care of itself. I’m very confident your investment is safe and the stock price will make new highs again.
The board is certainly better with more information shared from many people with different backgrounds, expertise, and experiences and I look forward to your contributions.
