CBA Florida Inc. (fka CBAI)

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Technical Trading Overview for Cord Blood America Inc. (CBAI)
Submitted by BeaconEquity.com on Wednesday, 6 January 2010No Comment.Cord Blood America Inc. (OTCBB: CBAI)
Cord Blood America Inc. (CBAI) is engaged in the business of collecting, testing, processing and preserving umbilical cord blood. The Company is primarily a holding company whose subsidiaries include Cord Partners Inc. (Cord), CorCell Co. Inc., CorCell Ltd., CBA Professional Services Inc. D/B/A BodyCells Inc. (BodyCells), CBA Properties Inc. (Properties), Career Channel Inc., D/B/A Rainmakers International (Rain) and Family Marketing Inc. (Family). In addition, the Company provides private cord blood stem cell preservation services to families in the United States. It also engages in collecting, processing and preserving peripheral blood and adipose tissue stem cells, which allows individuals to privately preserve their stem cells for potential future use in stem cell therapy. Further, it creates direct response television and radio advertising campaigns, including media placement and commercial production; involves in the placement of advertising in television and radio outlets; and production of advertising content, including television commercials and radio copy. Additionally, the Company engages in procuring and setting up call centers; editing, dubbing and distribution of radio and television commercials; and procuring and placing print advertising, as well as provides advertising and marketing consulting services relating to the customer’s marketing campaign.
The Company is headquartered in Santa Monica, California.

Share Statistics (5-Jan-10)

FY

2007
FY

2008
%

Chg
Q3 2008
Q3 2009
%

Chg

Symbol CBAI
Revenue, $Mn 5.8M
4.2M
27.6%
n/a
838K
n/a

Current price $0.0129
Gross marg. 34.0%
55.9%
64.4%
n/a
75.7%
n/a

52wk Range: $0.0015-0.025
Oper. margin -67.3%
-32.7%
51.4%
n/a
-112.8%
n/a

Avg Vol (3m): N/A
Net margin -103.3%
-164.8%
59.5%
n/a
-274.5%
n/a

Market Cap. 58.9M







Dil. Shares Outst. 4.6B
EPS, $ -0.04
-0.03
25.0%
n/a
0.00
n/a


Source: Reuters.com, SEC Filings.


Financial Summary
For the nine months ended September 30, 2009, total revenue decreased approximately $0.7 million, or 22.1% to $2.6 million. Rain’s revenues decreased approximately $0.5 million, or 71.6%, due to the steep down turn in the economy, and also due to the change in the Rain business model and management’s decision to deemphasize this business.

CBAI revenues decreased $0.2 million or 8.8%, to $2.4 million, because of significant cutbacks in marketing and advertising due to a lack of capital. The Company remains focused on strategic organic growth and accretive acquisition strategies, which management hopes will reduce or eliminate the losses and negative cash flow.

Cost of services decreased 36.5% or by $0.6 million as a result of lower revenues, but Gross Profit increased from 54.3% of revenues to 62.7%, due to a significantly higher proportion of revenues coming from the higher margin CBAI business. The Company anticipates that through the continued growth and expansion of its business, it will continue to benefit from economies of scale in that business segment.

Administrative and selling expenses increased by approximately $0.6 million or 19.5% from the prior comparative period to $3.4 million. The Company’s salaries expense increased by approximately $0.4 million, primarily due to its awarding stock options to its two senior executives for prior years’ services, resulting in a non-cash expense of approximately $0.6 million. Due to layoffs throughout the year, the Company incurred a saving of $0.2 million, for a net increase of $0.4 million as compared to the comparative period. It also reduced its marketing costs and office expenses by approximately $0.1 million, as the Company reduced its expenses in its Rain division. These reductions were partially offset by an increase in professional fees and public company costs of approximately $0.2 million, primarily due to the Company’s costs associated with acquisition of additional working capital.

Net loss increased by $0.6 million, or 10.5%, from the prior comparative period.

For the three months ended September 30, 2009, total revenue decreased approximately $90,000, or 9.6% to approximately $0.8 million. Rain’s revenues decreased by $54,000, or 74.5%, for the reasons outlined above. CBAI’s revenues remained approximately the same in the comparative periods at $0.8 million. CBAI remains focused on strategic organic growth and accretive acquisition strategies, which management hopes will reduce or eliminate continuing losses and negative cash flow.

Cost of services decreased by approximately 54.7% to $0.2 million, but Gross Profit increased from 51.5% of revenues to 75.8%, due to a significantly higher proportion of revenues coming from the higher margin CBAI business. The Company anticipates that through the continued growth and expansion of its business, it will be able to benefit from economies of scale in that business segment.

Administrative and selling expenses increased by approximately $0.6 million, or 67.7% from the prior comparative period to $1.6 million. The Company awarded stock options to its two senior executives for prior years’ services, resulting in a non-cash expense of approximately $0.6 million. In addition, it hired its lab director for the new cryogenic laboratory in Las Vegas, Nevada, at the beginning of the quarter.

Net loss increased by $0.7 million, or 42.7% from the prior comparative period

CBAI has experienced net losses of $6.0 million and $5.4 million for the nine months ended September 30, 2009, and 2008, respectively. At September 30, 2009, CBAI had $158,164 in cash. CBAI currently collects cash receipts from operations through both subsidiaries: Cord and Rain. CBAI’s cash flows from operations are not currently sufficient to fund operations in combination with its corporate expenses. Because of this shortfall, is has had to obtain additional capital through other sources as discussed in Note 4, Notes and Loans Payable.

Since inception, CBAI has financed cash flow requirements through the issuance of common stock and warrants for cash, services and loans. As CBAI expand its operational activities, it will likely continue to experience net negative cash flows from operations. CBAI hopes to be able to obtain additional financing to fund operations through equity offerings and borrowings to the extent necessary to provide the necessary working capital. Financing may not be available, and, if available, it may not be available on acceptable terms. Should we secure such financing, it could have a negative impact on its financial condition and its shareholders. The sale of debt would, among other things, adversely impact the Company’s balance sheet, increase its expenses and increase its cash flow requirements. The sale of equity could, depending on the terms of its placement, among other things result in dilution to shareholders. If the Company’s cash flows from operations are significantly less than projected, then it would either need to cut back on its budgeted spending, look to outside sources for additional funding or a combination of the two. If CBAI is unable to access sufficient funds when needed, obtain additional external funding or generate sufficient revenue from the sale of its products and services, it could be forced to curtail or possibly cease operations.

In June 2008, the Company announced the signing of a Securities Purchase Agreement with Tangiers Investors LP, whereby Tangiers may purchase up to $4 million of the Company’s common stock. In May 2009, the Company announced the signing of a Secured & Collateralized Convertible Promissory Note for $1.3 million. On July 2, 2009, the Company executed a Preferred Stock Purchase Agreement with Optimus Capital Partners LLC pursuant to which it has secured a $7.5 million capital commitment which may be drawn down in increments, under certain conditions. On November 2, 2009, the Company filed its registration statement for these shares, which is now pending. During the nine months ended September 30, 2009, the Company drew down $500,000 in debt, repaid approximately $200,000 of outstanding debt, and converted $8.7 million in outstanding debt and accrued interest for 3.2 billion shares of common stock. Additionally, the Company 307 million shares of common stock for approximately $1.2 million during the nine months ended September 30, 2009.

Financial Strength (5-Jan-2010) Company Industry Sector S&P 500
Quick Ratio (MRQ) 0.05 1.52 2.58 0.94
Current Ratio (MRQ) 0.05 1.62 3.08 1.10
Long-Term Debt to Equity (MRQ) – 65.67 26.36 123.42
Total Debt to Equity (MRQ) – 76.14 33.94 183.64


Source: Reuters.com, SEC Filings.


Analyst Consensus
No chart available.

Source: www.ft.com


No consensus analysis data available.


Source: http://www.reuters.com/finance/stocks/financialHighlights?symbol=CBAI.OB

Investment Highlights

CBAI recently announced that it has signed a Letter of Intent to process and store cord blood specimens for BioCells Inc., headquartered in Argentina, and its affiliates in Peru, Colombia, Bolivia, Panama and Puerto Rico. BioCells is already the second largest stem cell storage company in Argentina with annual revenues of 1.5M (USD). The company has 12 locations throughout the country and has recently expanded internationally to both Uruguay and Paraguay. CBAI recently announced a grand opening of its 17,000-square-foot stem-cell laboratory and headquarters in Las Vegas, near the city’s international airport, on January 22, 2010. The deal between CBAI and BioCells is pending due diligence, and if it is completed successfully, anticipates the contract closing in the first quarter of 2010.

CBAI, the umbilical cord blood stem cell preservation company focused on bringing the life saving potential of stem cells, a biological insurance policy, to families nationwide and internationally, said in mid December that it has reduced its debt by a total of $1.4 million so far in the fourth quarter of 2009 and total debt eliminated for the year now tops $10 million. CBAI recently announced a grand opening of its stem cell laboratory and headquarters in Las Vegas on January 22, 2010.



Source: http://www.cordblood-america.com/

Technical Analysis




Source: http://stockcharts.com


CBAI is trading above its 50-day moving average. This is considered to be the sign of a bullish trend. There is added weight to this indication because the moving average is rising and suggests that there has been buying interest in this stock.

CBAI’s recent volatility has been greater than normal. This is evidenced by the increased distance between the upper and lower Bollinger Bands. These bands measure volatility using standard deviation and a large width is due to high volatility. Additionally, CBAI is trading near its upper Bollinger Band. This suggests that the stock price is high relative to its recent price action.

The MACD for CBAI currently indicates a strong bullish signal for two reasons. First, the MACD is above the signal line, a 9-day moving average. Second, the MACD is above 0, which implies that the underlying moving averages are trending higher.

Comparative Analysis
Company Name
Ticker
Price per
Mrkt. Cap.
P/E
P/S

Jan-5-2010
symbol
Share, $
$ Mn
2009
2010
2009
2010









PerkinElmer Inc. PKI
20.69
2.42B
31.68
n/a
1.34
n/a

CYRO-CELL International CCEL
1.55
18.22M
10.54
n/a
1.11
n/a

Lifebank Corp. LBK
0.20
N/a
n/a
n/a
n/a
n/a

Healcare Median

1.22B
21.11
n/a
1.22
n/a

Cord Blood America Inc. CBAI
0.0129
58.94M
n/a
n/a
n/a
n/a


Source: Thomson Financial


Insider Trading Activity
NET SHARES PURCHASE ACTIVITY

Inside Purchases – Last 6 Months

Shares
Transaction

Purchases n/a
0

Sales n/a
0

Net Shares Purchased (Sold) n/a
0

Total Insider Shares Held 0
n/a

% Net Shares Purchased (Sold) n/a
n/a

Net Institutional Purchases — Prior Qtr to Latest Qtr

Shares

Net Shares Purchased (Sold) n/a

% Change in Institutional Shares Held n/a



Source: Yahoo Finance

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