Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
It is now to the point either management needs to announce a signifigant inventory aquisition, or management needs to explain the status of the a/s, what the debt attached to them has been used for, and why this debt has not been used for inventory aquisition.
We are a good way into the 1st quarter 2012. The same nonsense with the shares and the pps continues in the same way it did prior to the r/s.
This needs to stop and an accounting as to what occurred needs to be given.
The Chill is no longer an acceptable excuse.
AIMHO, GLTA
I dont think most are happy with what is occurring.
I'm not sure it rises to the level of an SEC investigation at this point.
One thing is for sure CBAI needs to dramatically increase inventory in very short order, or they need to leave the shares in the treasury.
GLTY
your missing the point- I dont care what the financing arangment is. I trust Matt will get the best terms he can. I care what the debt is used for.
GLTY
I dont have any problem if Matt uses the shares. I just have an expectation once the shares are used up, CBAI will have a SIGNIFIGANT amount of stems in inventory. Inventory is what CEO says drives the valuation of companies within the industry.
Once the shares are used. CBAI should have between 100k and 200k stems in inventory.
Around 80mill shares have been used, I am becoming concerned as I am not see the growth in inventory to justify the use of this many shares, as the a/s were earmarked for aquisition.
GLTY
Whatever strategy CEO chooses is fine- Just cant set out a share plan for an aquisition strategy and use it for an organic growth strategy. That wont work. It will kill your investment.
If the strategy is going to be organic growth then a subsequent change in the financing method should follow.
AIMHO GLTY
As long as share financing continues. There willl be no stability to this stock.
CEO wanted a r/s of 500/1 ~ investors allowed a 100/1 split
--- for a total authorization of 250 million shares.
--- currently there are approx 150 mill shares left.
--- The shares were supposed to propel an aggressive aquisition strategy.
--- CEO since the r/s has what appears share finaced approx 80mill shares for operations
--- THIS SHOULD BE EXTREMELY CONCERNING TO ALL INVESTORS.
--- If the remaining shares are used to finance operations under an organic growth strategy rather than the aggressive inventory aquisition strategy they were supposed to be used for, current invesotors will be on the short end of the stick.
When there are 250miill shares outstanding, if what CBAI has to show for it is around 30k stems in storage. Investors should demand change. but at that point it likely will be to late for your investment.
-- Investors would be wise to start being very congnizant of this and pay very close attention to the filings. They should not accpet share financing without inventory acquisition as the major use of the dilutiion funds
--- These minors rises, while all good as they are positive, are really just manipulation of a penny stock under dilution.
--- I am a strong believer in this company and the CEO, I am concerned as to the use of the dilution funds.
AIMHO GLTA
Beware the Dilution man!
I agree Boog..
The positive pressure is building in the industry. Matt has definately positioned CBAI to reap the benefits of the rapidly advancing industry.
The fate of CBAI is intertwined with the fate of the industry. The fate of current CBAI Investors is intertwind with the use of the remaining a/s shares.
AIMHO GLTY
Great news today!
The pressure of the industry is beginning its long upward climb, heading for 2015.
If CEO is careful with the share financing we all should be smiling wide soon.
AIMHO GLTA
@tbk -- It as close to a gurantee in a penny stock your going to get.
This isnt Microsoft. If you havent already, you really need to look into the China stem industry and how it is organized and regulated, and the Chinese attitude for cell therapies. CEO has very wisely positioned CBAI to ultimately have a lucrative piece of China (which ultimatley means Southeast Asia in generally).
Quite Frankly, talk about China being a bad deal for CBAI is non-sense. An investor who thinks so has a fundemental misunderstanding as to what is happening in the Asia stem market.
AIMHO GLTY
The CEO in a posted Q/A when the China lab 1st began operations, clearly stated China was going to start out in the same position as CBAI started out ~ NOT PROFITABLE.
If an investor doesn't understand the vast potential (all but guranteed) of tremedous growth of our China partnership - then they have totally missed the boat. China is part of CBAI future revenue backbone. With a tremendous footprint in an very rigidly control Stem Cell industry in China. China will be GOLD to CBAI over the long term.
The concern for investors at this point should be dilution. If dilution continues and there is not an signifigant aquisition relevant to the amount of dilution ~ the CBAI has a MAJOR problem. At this point shares should be almost exclusively used for aquisition. This was the "deal" as the need for the r/s.
If a signifigant amount of shares are being used to fund operations then this is a MAJOR investor issue.
With the understanding(as I'm sure most here understand) CBAI doesnt dilute directly-- they engage in shares for financing agreements with financiers. This does not mean management is absolved as to the selling of shares. As management should be fully aware that these agreements all but gurantee the financiers will sell their discounted shares into the market, unaturally suppressing the share price.
The recent filing should be concerning to all.
If there is no signifigant(meaning major revenue changing) aquisition by the end of the 1st quarter 2012, and there are more than 100 million shares outstanding ~ then investors should demand a change in the direction and the financing activities of the company.
I am all for slow steady Organic Growth. I am for heavy dilution and signifigant revenue aquisitions. I am definatley NOT for organic growth and heavy dilution.
AIMHO GLTA
HO! HO! HO! is Santa going to bring us coal?
It appears this year is pretty much a wash out for CBAI.
Revenue has been increasing and cost are coming down.
What is troubiling is the amount of o/s approx 107mill vs 68mill since May of this year, without a major aquisition to justify the shares. This seems to indicate the shares are being used to fund operations- this is not good.
There are approx 143 mill a/s shares left. If they are used for anything other than inventory aquisitions, it should concern all investors.
The last thing investors want is additional authorized shares over 250mill. this would pattern the 7 billion share pattern. This wouldnt be acceptable.
The minipulation of CBAI shares as a tool should be over. Every investor should make it very clear their expectations that any shares they were left with and any shares purchased since should have substance. Meaning investors should have assurances from management that current a/s should be used judicously. Not with an assmption if they run out they can simply issue more or r/s again. This is not accpetable. At this point CBAI shares should be treated by management as if they were gold. Someone elses gold.
I understand the concept of not buying the LOI until value in the shares increasee as a good goal is to try and use as few of the shares as possible in order to make the purchases.
This being said, it is now the DUTY of management to focus on increasing the pps and sustaining this increase.
The pump and dump activities is wearing very thin with all investors. 2012 is the time for share nonsense to be over. It should have been over after the r/s. the avoidable Chill, caused a furthering of these activities. The Chill is over the share games should be over also.
To move the blame for CBAI woes from the DTC Chill to JMJ financial is ludicrous, and without merit. CBAI vouluntarily entered into an agreement with this entity. If its a bad deal the owness for this is squarely on CBAI management not JMJ financial.
Plain and simple in 2012 the pps needs to rise SIGNIFIGANTLY and it needs to maintain this rise. If the same pattern of 2011 continues into 2012, there should be immediate calls from investors for management accountability.
CBAI needs to move forward.
Its not acceptable to have a aggressive aquisition strategy as the need for the large r/s then to put in place an organic growth strategy. I am all for a slower organic growth strategy, however with this strategy there should be a halt to the use of anymore a/s shares.
Heavy dilution and an organic growth strategy is not what investors signed onto with the r/s.
The cord industry in reality is crawling along, crawling at a brisk pace, but crawling none the less. This is not the fault of CBAI.
No investor can expect CBAI to skyrocket anytime soon. A 2.00 pps is not a skyrocket, it would be a reasonable pps for a company that has the resources of a 7billion share sale and 107mill share sale over the course of several years. Management has been given the money by invesotrs. It is time to show investors substance for this money. Substance as reflected in a substantial higher pps, a real rise and a sustained rise.
Its time for management to attract the quality investors that the r/s was supposed to do. CEO said prior to the r/s there were several large investors waiting to invest but the share structure was a concern, the share structure has been fixed. where are these investors?
I have all confidence in the management of CBAI. With this said I will no longer accpet any excuses for the plan not to be implemented in 2012. The excuse time is over. Its time for real substance, and its time for the use of the a/s only for aquisition not for operations. Nothing else is accpetable.
In 2012 if CBAI doesnt take a tremendous leap forward, the blame sits squarley on management. Complete accountability of management for the pps. begins Jan 1, 2012.
Santa is bringing us all coal in 2011. If management stays true to its words pre-split and investors hold them accountable for those words, by December 2012 investors should have a VERY MERRY Christmas.
If there is no 4 leaf clover by St Patrick's Day, then this company has very serious problems. Quite frankly the pps should be on a sustained rise by now, enough were at least one of the LOI's should have been cost effective to purchase by now. It is very disturbing that come the end of this year this hasnt occurred. If this doesnt occur by the end of the 1st quarter 2012, investors should demand change. I can assure all I will be come very vocal in demanding change if this doesnt occurr.
To all have a Merry Christmas and a Happy New Year. It shaping up that CBAI will have a great 2012. It needs to, its time.
AIMHO, GLTA
Tremendously GOOD NEWS!
The signifigance of this should not be underestimated.
I hope all have been quietly loading up on these cheap shares. Those who had the confidence in the CEO and have done so are going to be rewarded very nicely.
CBAI will shortly take a giant leap forward.
CBAI2 is in front of us.
EXCELLENT JOB MATT!
AIMHO GLTY
Its definately going to be a long and winding road.
Think years not months for a return on your investment.
Human heart stem cells used for repair
http://www.cbc.ca/news/health/story/2011/11/15/heart-stem-cells.html
Geron's Exit Symbolic Ding for Stem Cell Research
http://abcnews.go.com/Health/wireStory/gerons-exit-symbolic-ding-stem-cell-research-14959306
AIMHO GLTA
http://www.wvrecord.com/news/238871-putnam-woman-says-companies-didnt-properly-care-for-umbilical-cord-blood
http://www.wvpersonalinjury.com/Bio/RobertWarner.asp
http://pview.findlaw.com/view/3400193_1
http://www.westvirginia-companies.com/companies/kanawha-county-circuit-court-thirteenth-circuit-judges-judge-paul-zakaib-jr.html
http://www.msnbc.msn.com/id/44988639/ns/health/t/wva-judge-affirms-most-m-damage-award/
Lindsay Bays, individually and as mother and guardian of Luke Bays, a minor child vs. CorCell, Inc.; Cord Blood America; Progenitor Cell Therapy, LLC; and Bergen Community Blood Center
PA- Robert B. Warner, Tammy Bowles Raines; J- Paul Zakaib Jr.
* On Feb. 12, 2007, Lindsay Bays entered into a contract with the defendants for the collection and storage of her unborn child's cord cell blood to be collected from the umbilical cord at birth of the child. Lindsay Bays claims the defendants failed to adequately collect, label, transport and store her son's cord blood. She is seeking compensatory and punitive damages with pre- and post-judgment interest.
Case number: 11-C-1664
GLTY
No Prob Holt, You may want to call them after you set up an account to make sure there are no restrictions on purchasing if your a new account holder. I have been buying with no problem. I bought some a few days ago. Had an order in today, but didnt get filled.
I couldnt say if it is a good time to buy or not. Obviously, I have been buying. I thought when it was bouncing off .12 it was leveling out and bought then. I certainly was wrong. I do still have those shares, and while if I would have waited I could have purchased quite a few more shares with the same funds. I bought some at .024, and some more at .021, tried to buy some at .016 today, but it just missed that level. Are we near the botttom? With the chill in place its difficult to discern. Pre-split dilution, and profitability basically pushed the pps down. Now the chill, dilution, r/s, investor confidence, profitability all are putting negative pressure on the pps.
The next quarterly numbers will say alot. If organic growth is strong and cost are inline, it will go along way to counteract the negative presssures. As it will show the organic growth backbone is getting stronger. Relieving some of the pressure to close the ROI's, reducing the need for dilution, which reduces the Chill effect.
If the numbers are weak and cost are rising, then I would say look out below.
The fact AT wont let you trade is disturbing, coupled with a friend of mine who today told me his brokerage warned him that he may incur the cost of paper certs if he continued with his purchase attempt today. He held off on the purchase. Is a retail lock rolling over the brokerage houses? We will find out. If DTC rechills the retail traders. It would seem they found something they didnt like in the responses. The ticker symbol CBAI would be history shortly therafter.
What it would become is hard to say. There is substance in the assests. So I could see it merger, go private, or a court reorganization. All but a merger with a equal or a lesser entity would be negative for investors.
My feeeling is the Q numbers will be at least decent. Hopefully this will start to push against the negative pressures.
Definately, there needs a substantional move forward. The market knows it, The CEO knows it, and investors know it.
Its definately a time especially if your a pre split long to protect your investment.
I'm nearing a 100% write off on my pre-split core position. Others in my same position have chosen to sell, preseve their remaining cash, and I persume repurchase when thye believe its at the bottom, taking the subsequent tax write off in one lump. If it keeps falling and they find the bottom, then hopefully they can get the tax write off and recover their loss also as strong CBAI pps rises.
I prefer a more flexible strategy. I want to mantain a core position in CBAI, because I think they will ultimately make it at least back to my original average purchase price.
With the current round of shares I am purchasing, while dissapointed at times my patients hasnt allowed me to maximize my bang for my buck, I am able to accumulate core position replacement shares at nominal cost.
I have more than doubled my core position.
I havent yet, but now have the flexibilty to start selling off my higher cost original core position shares taking the tax write off as I sell. If CBAI continues to fall my tax write off continues to get larger, while still maintaining my desired core position at a cost more inline with the current pps. If CBAI turns it around then I start making profit on my new shares fairly quickly.
If a pps rise was a pump, I can sell my new shares for profit, maintaining my core position, and the tax advantage of the more expensive shares. I can then use the profit to buy when it comes down, or bank the profit reducing my original core loss, while still taking the tax write off if I desire on the more expensive shares. If CBAI hits a moon shot, then I am all good up and down my position. With a combination of long and short positions I maintain my capital gains tax flexibility.
I would for sure rather have profit than tax write offs, however when being invested at a current negative position in a company with uncertainty but promise, I would rather build as much flexibility in my investment as possible.
Is it time to buy- sHrUg ~ I'm not qualified to tell you.
If your holding a pre-split position at a higher cost relative to todays pps, and you want to try and maximize that position, should you be working to manage it? I would say~ definately.
AIMHO GLTY
scottrade.
If CEO can hold out all investors are going to be very happy...
12 October 2011 Last updated at 22:10 ET
Gene therapy and stem cells unite
http://www.bbc.co.uk/news/health-15272081
...if not then at least all of our futures look to have taken a healthy leap forward.
CEO said if thought he was going to be running a cord blood storage company over the next ten years he would be looking for an exit strategy.
He recently said he is in it to stay.
My investment dollars still are saying he is in it to stay. I confident he and his management have a solid understanding of the rapid formation of this industry. Continual breakthroughs are rapidly expanding stem use possibilities beyond cord/placenta blood.
Cord storage is supposed to be the annuity cash backbone with diversity into other stem processing and storage products setting CBAI revenue wise apart from current competition. I would imagine CEO is attempting to get the annuity revenue set as soon as he can in order to position CBAI with as many diversified revenue tenacles the technology will allow. ie the pursuit of inventory.
The "golden parachute" is troubling if it is part of an exit strategy. If it could be a protection for CEO from a hostile take over, or a merger that would displace him. The cost to fire or if resigns in months would be in the 2.5 mill range, with Joe added in your inching closer to 4 million. I would be expensive to get rid of one the other or both. In that regard it could be less of an issue. definatley the information should be out there so investors can make their own judgements.
CBAI is definately at a critical time. It has to get off the teet of shares for funding. In order to do this they may have to reorganize the ownership structure. How much ownership, at what price, with whom, and the direction it takes CBAI is the strategic alternatives.
If the Chill remains it is going to have to happen sooner than later. If the Chill is lifted then the alternativies may not be necessary.
Can the CEO put it together? The answer, well thats...
i did 2 weeks ago
It seems you could be pretty close to the reality of the situation.
Think merger with a non-chilled company. Where CBAI disappears. The danger for current investors, is if a merger happens when the pps is at these levels, likely would receive relatively few shares in a merged CBAI.
If a merger happens with a stable company, your investment could be stuck in neutral for a long time. As CBAI will bring relatively few assest to the merger, if the LOI's are put on the shelf. It may stabilize your investment. But a minor stake in a stable cord company, means a long wait on ROI.
If there is a merger with an equal sized company, and the chill is neutralized via the merger, If CEO(if its Matt) is then able to proceed forward on the LOI's could end up a very good thing.
At this point any strategic initiative would seem to come from a position of weakness rather than strength
AIMHO GLTY
As Dr. O'Neill said its not 30 years away but its not 10 years either...
seems were getting closer to ten
Like a river --- the current keeps moving along
http://www.cbsnews.com/8301-504763_162-20116695-10391704.html
http://www.latimes.com/health/la-sci-stem-cell-cloning-20111006,0,1856857.story
http://www.nature.com/news/2011/111005/full/news.2011.578.html
GLTA
Thanks Boog R--
I know you get whats going on. I was surprised you sold, but I understand your thinking behind it.
Let me set the record straight -- I have no ill will towards Paul nor am I am deeply concerned that he said one of the LOI's was lost.I have had subsequent conversations beyond Paul, that advised me the 3 LOI's were still in place. I will take that word as gold until I see otherwise.
They are not sure bets, but they are still in play. We will see what time does.
They 3 LOI's are not a total mystery. 1 we now is cmex. 1 is a major North American Compnay, the other is a major south American company. We don't know their names, because those letters of intent unlike Cmex are non-binding. If matt revealed their names he would do a great disservice to shareholders, and I am sure violate the LOI agreement.
I only posted my followup post to DD, because Paul posted what I posted was a Blantant Misquote. Basically he was saying I wasnt being truthful. I had to defend myself. Its irrelevant wheather Paul realizes what he said or not, he doesnt make the decisons for CBAI. So I followed on my conversation with Paul, and received assurances, IMO are solid. I am comfortable that the 3 LOIs while not anywhere near a sure thing, still have a potential for CBAI. If the chill is lifted, then I think we will land one of them. 1 will change the dynamic of CBAI. There are rose colored glasses investors, that really do alot of harm to CBAI. They bring alot of nonsense and a warped reality to the dialogue.
thanks dd ---
--- time will tell the fate of cbai- im banking it will be postitive for those who are patient -- and take the risk
--- definately no gurantees.-
glty-
Hey Double D
One of the LOI has been lost~ is definately what was said by Paul in my phone conversation with Paul.
Realize I had the phone conversation as I am an investor who hasn't sold. I do not make alot of phone inquires, in fact that phone conversation was at Paul's offer. I was paying very close attention as to what was being said.
For Paul to characterize the information I brought to the board as a "blatant misquote" - he is basically saying it was an offensive misrepresentation of what he said. Basically he is calling me a liar, which is very disturbing.
I have been posting on this board for awhile now. Those who have read any of my post are able to judge for themselves if they think I am a liar or not. Paul has been active on the board for a short while now. Those who have read his post can also judge for themselves the level of truth they attach to his post. I have no desire,and wont get into a he said he said debate with Paul. I know what was said.
My interest is the measured progression of CBAI - I am here for money, and revolutionary technology ~ not nonsense.
Subsequant to the conversation with Paul, I had another conversation where I was told all there LOI's were still in place. Time will determine if they are obtainable.
Aside from the LOI's there is a healthy progression of organic growth. With the Chill issues, it is a positive sign to see this progression. What should be watched is the cost in shares. A high share usage for organic growth purposes would be a negative.
GLTY
Paul told me in a phone conversation.
GLTY
A 3
---- The quarterly is disturbing and my inquiries since have been even more disturbing.
Investors call for immediate action is in their investments best interest.
KCA was correct to be concerned about the Chill. It is the most overiding, pressing issue for CBAI.
The Q has shown the Chill thus far has cost CBAI nearly $1 million dollars in penalties.
My inquiries have revealed there is a "hope" that the chill will be cleared up soon, but there are no gurantee/ There is no gurantee the Chill will not become permanent, which appears would destroy the company.
One of the LOIs has been lost due to the chill, and the others including cmex are on hold with or without a success in court. The money apparently is too expensive with the Chill in place.
-- I posted earlier, there is no sense crying over spilled milk- I continue to believe this. Nor should we continue to say the glass is half full, when the glass clearly has a leak in it.
The rhetoric on both ends only distract investors from focusing on the real issues. Its not about the CEO, its about protecting ones investment.
The real issues are the stated need for the proxi-
--- the 100/1 split ratio was in order to attract quality investors and finacing. Where is this? The apparent reason for the delay in attracting these investors/financing is the Chill.
--- the a/s amount 180 million was to short term fund operations until the 1st LOI purchase. From then CBAI would operate under its own cash flow and the remainder of the majority of shares were to be used to purchase inventory @ a cost of $300/per, as opposed to a higher cost thru organic growth. Where is this? Again the apparent reason is the Chill.
--- The questions to be concerned about is
1. How many shares have been released since the split?
2. What specific purposes were they used?
--- The Q doesn't show the shares released since June.
If a large amount of shares have been used for operations,then the question should be asked~ What specific cost cutting measures have been implemented and how much has this saved?
Additionally, has there been any options awards?
The Chill should be managements priority number one. This should override all other issues. A halt to the use of any and all resources not directly putting inventory in the tanks and keeping the lights on should be implemented. Investors should be provided difinitive indication of this. Management doesn't want to say much about the Chill publicly at the risk of negative feedback from the DTC and a permanent Chill be implemented. Fine, if this helps a positive resolution.
However, the reason for the Chill should be explored internally, and the reason for the Chill should be a concern for all investors.
They stated reason by management is ~ They have no idea what caused it. The best indication is the Chill is related to the previous 7 billion dilution.
Investors should give very serious consideration to implementing levels of control over their investment, and should contemplate whether the following is needed.
1. Whether an independent Board or Directors would be beneficial?
2. Whether a Director of Operations and a Chief Financial Officer should be hired?
3. Should an Independent audit be called for?
4. Do new rules need to be implemented regarding the use of shares for non-inventory purchase puposes?
5. Should there be an independent compensation committee?
6. Should compensation and options benchmarks be instituted?
The CEO lobbied for and conveinced shareholders that the proxi plan was to implement a inventory aquisition strategy in order to rise to a level of inventory sooner, rather than later thru organic growth. The proxi ratio was the formula for this success.
It should be kept in mind that originally CEO asked for 500/1 and 80mill A/S. this was modified due to shareholder resistance. If the 100/1 ratio changed his originally plan and caused any financing issue, then CEO should articulate this to shareholders, and specifically what issues it has caused.
Based on what appears to be the current issues either split ratio would have brought us to this situation.
The CEO has alot of explaning to do, and has alot of tanks around the world to fill. CEO should get working on both immediately. He should demonstrate this thru inventory numbers. It seems time to publicly disclose the number of stems we have in storage, and make this a permanent feature of the quarterly report. This is common practice for other stem companies. It should be common prctice for CBAI no matter what that number may be.
Investors should give serious consideration as to whether organizational safeguards need to be implemented in order to protect their investment, so as future situations such as the Chill do not occur.
I give the situation a 3 of 10 as the organic growth numbers seem to be progressing. However the proxi was set up for an inventory purchase strategy. If we move to a dominant organic growth strategy, then the use of the remaining a/s should be closely scrutinized.
All investors should be paying very close attention to their investment right now. It is a very dangerous time for it.
The most helpful shareholder right now is the long shareholder who sat quietly supportive of the CEO and voted for the proxi. If they are concerned, if they voice their concern to managment it will reinforce that is not the same disgruntled investors that are concerned. I have done my part in this regard, although I did vote no on the proxi.
Its definatley not time for no proxi vote shareholders to get pleasure from the situation. Its more important to urge (Require if needed) management to correct the problems.
No more blaming external forces for the causes of our problems, its time to look at the companies internal choices.
As I stated in an earlier post. If the CMEX court case is succesful and the deal doesnt close by the end of September, there is a MAJOR problem. We may be in the midst of that problem now.
This company definatly can fly for the long term. It may be helpful or necessary for investors to give management a perspective they may not be able to see due to the current organizational structure.
GLTY AIMHO
Rick Perry recovering well from experimental stem cell procedure
http://news.google.com/news/more?pz=1&jfkl=true&cf=all&ned=us&ncl=d89ltZj0ony08OMOmighRY0e4_31M&topic=m
Agreed, I definately dont think that deal is dead in the water yet.
GLTY
We are definately on the same team in regards what we want for or investment and the future of CBAI.
Don't misunderstand I dont put blind faith in the CEO. Its at the point where he definately needs to start filling the tanks. Not next year, this year.
Personally, I like the organic growth model better, I think its proven and has less risk than the aquisition strategy. I'm concerned that the aquisition strategy can have leagal cost that spiral out of control. So far three legal hurdles have popped up with this strategy. The Chill, Cmex, and the bankrupt Ill company resisting turning over their assests. I think this cost should be factored into the $300/per inventory aquisition cost CEO advises vs the 1k organic growth cost. If aquisiton starts to equate to organic growth cost, then I hope we turn to a predominately organic growth model.
I must though give deference to the CEO, its easy for me or anyone else to armchair quarterback him. The reality of it is, I invested in this company full knowing what I was investing in. A high risk penny stock, with potential for tremendous gains. So far, while I have not seen the pps return on my investment. I have definately watched CBAI expand globally and domestically tremendously. There are 5 main people at the top of CBAI. Those deserve the credit and my thanks for this.
CEO stated he needed the r/s and a/s to fill the global tanks with inventory. He got it. The plan is buying the inventory with diluted shares, rather than cost cutting and slower aquisiton thru organic growth. There is no mystery to this plan.
If the next Q comes out and there are 90 mill o/s shares and not a signifigant increase in inventory, I will be the first advocating the CEO put the brakes on the aquisiton strateg, and turn the ship towards the organic growth. It may be higher cost, but its safer.
I wanted to be on Old Ironsides. We are on the Titanic. Investors should be very watchful of icebergs. If there is heavy dilution and no signifigant inventory (not company) aquisition, then there is a MAJOR problem.
I have also very strongly advocated Options awards should be strictly tied to revenue benchmarks.
We have to give the CEO a (little) time to excecute his plan. If I pretended to know more about stem cell banking and the nuances of what it takes to succeed in it than the CEO, I would be a fool.
I give the CEO trust with verification. This plays out for me as inventory aquistion vs dilution and revenue vs option awards.
CEO has a short window to get it done.
AIMHO GLTY
At least 18 million
http://www.globenewswire.com/newsroom/news.html?d=201346
It was a NON-BINDING offer of $1.50 x approx 12mill shares. The offer came from a private equity group.
The offer never got off the ground ~ so the funding plan went away. Or was put on the shelf for the time being.
CMEX is a different deal different entities involved ~ differenet funding plan.
I would imagine with both deals the end result would have been the same a r/s and a/s. The difference being CBAI likely wouldn't have had sole ownership of ccel. CBAI will have sole ownership of cmex.
Do you really think CEO is going around making offers for companies, without a pre-understanding of where the funds will come from? If so you may want to go back and think about things a little more in depth.
CEO said he didnt have the funding yet for cmex as was contigent upon a positive proxi vote. Which you answered your own question with your followup post to this one, when you posted the details of the contigencies of the cmex agreement. Thanks for helping us all out.
AIMHO GLTY
With all respect I'm not sure if you actually read the post. I know it was long so I dont blame you if you just read bits and pieces of it. Unfortunately, this one is longer. Sister Angela Marie taught me how to listen, but forgot to teach me to be concise.
I talked about the Chill alot because that what KCA post asked my opinion about. I was giving her some detailed thoughts because she was concerned it was being overlooked and is concerning to her.
I agreed with her ~ the Chill is a concern the level of which is yet to be determined. It has potential to be a major concern or may end up being an expensive nusiance. depending on whether he can accomplish his clearly defined plan for the 2nd dilution.
I dont believe I was vague at all as to what that plan is, I explained it right below that statment.
It's simple. He is going to dilute for operations until he becomes cash flow positive, at which time he will no longer use shares for operations and work off our own positive cash flow. He is going to get this positive cash flow buy buying 1 or all of 3 companies. 1 we know is cmex, the under two are unknown except one is a major north american company and one is a major south american company. He has not said the names of the other two because the LOI are non-binding. We know CMEX as the LOI is binding.
The cmex deal was contigent on 3 things, CBAI Due Dilligence(examining cmex books) A correction of the CBAI share structure-to reflect their ability to buy Cmex, and financing. A fourth contigent was added with the law suit.
CEO announce the cmex LOI over 6 months ago. He has recently announced $8 million in financing was secured for the LOI. Which is the Tangiers 20 mill share dilution deal. The dilution phase we are currently in. The indication is this phase of dilution is near complete and the pps is settling into the value of a 90 million share company with no appreciable inventory, bouncing off 12 cents for 2 weeks. Which would highly suggest that the due dilligence is over and the purchase is being held up via the September court date. While technically doesnt hold it up, the CEO would be incompentant to settle the deal prior to the court disposition. If the court outcome is CBAI positive then the cmex deal should go thru very shortly after.
Cmex sits on 70k inventory with an yearly avg 8k new inventory a year. CBAI currently has approx 30k inventory (its a little higher). The combined companies will have approx 100k inventory, with an avg industry value of 1k/per. This will give CBAI an industry inventory value of $100 million, with at least $8 million in inventory value coming in each year. This changes CBAI overnight. If the court case is positive this should happen around the end of September,less than 60 days from now.
The reason CEO is buying these companies with diluted shares is his belief that the industry is in a mass consolidation and the same valued inventory that cost him over 1k/per to get organicaly, he can purchase for $300/per, netting Cbai a $700/per positive value net. Concurrently, he is continuing to build the organic growth network thru the insurance relationships and thru the Ger, Arg , and China purchases. He is going to use the positive cash flow from the LOI to fund the organic growth and diversification of revenue stream operations, thus freeing up the remainder of a/s to purchase quality inventory as the industry consolidation continues.
When he announced the proxi he expalained the investors choice, to vote yes and buy the inventory to get to positive cash flow quicker or vote no and reduce expenses and concentrate on organic growth a much longer process. Shareholders overwelmingly voted for the former.
The ultimate goal is to be the most signifigant stem cell storage company in the world, meaning he wants to control the stem inventory in its various forms; teeth pulp, placentas, cord, etc. This is the long term goal. There is going to be alot of "term" in between.
CEO plan actually was supposed to materialize during the 7 billion dilution. The second half of 2010 CCEl announced that a company made an offer to buy them twice. CCEl turned them down. That company was CBAI. This information came to light during court proceedings in the cmex suit. Neither company divulged the other prior, probably because they were both still interested in the deal. Had the deal gone thru CBAI would have been cash flow positive likely near the end of 2010. Instead CEO was able to secure a binding LOI from cmex, which also likely would have closed by now for not the suit. Meaning the CEO plan was to be cash flow positve near the end of 2010. Which is consitent with what he said the goals for 2010 were at the end of 2009.
CEO has been very clear about what the goals are, there is nothing fuzzy about his words. CCEl said no, then sued to prolong another company from saying yes. It changed his timeline. Not by choice, rather by circumstances.
No where have I ever read or watched the CEO say dilution was over. CEO has been attributed to saying this to a well known former poster on this board while a current poster on this board was standing there during the vegas grand opening festivities in jan 2010. At that time there were at least 1.4 billion shares in the treasury and none of the Europe, S. America or Asia companies were purchased. The offices in Bermuda and Hawaii were not open (think genecticly purer stem lines). The assest of the Ill companies were not purchased. The DNA testing kit was not around,and the insurance relationship were consisted of bc/bs of nj, and a 4 million share holding by bc/bs (which likely continues today.) all this was done with the 1.4 bill dilution of 2010. After CEO supposed statement, if he did tell this investor dilution was over, arent you glad he lied?(rhetorical ?).
When I was in 3rd grade on nice days our teacher would take us outside to sit in a circle. She would then quielty tell one of us a sentence. That student would quietly pass it along to the next person and so on until the sentence went full circle back to the teacher where the last student would say out loud the sentence they heard. Yeah know, all those times we played that game I dont remember the sentence ever coming back the same way it left, but we sure had alot of laughs hearing what it ended up.
Looking back all that fun did one thing ~ It sure made we understand how important it was to listen to whats really being said.
Thank You Sister Angela Marie were ever you may be!
I dont believe anywhere in my post I said all longs bought to flip the stock. What I did post is many (not all) investors who were there to flip the stock were forced to become longs as they got caught in the power of a mass dilution. Sorta of like a rip tide keeping a swimmer from reaching shore. If you try and swim against it the swimmer dies. If he swim along with it he lives.
CBAI is a penny stock selling for less than 6/10 a share in early December 2009. Over a three week period CBAI rose to a high of .0197, within a month it was back to 7/10 a share. More than doubling then dropping back more than half in a two month period. Many investors made tidy profit during that period. Many investors lost a tremendous profit opprotunity and now are long investors(investors holding stock for more than a year).
If an investor is not long CBAI because of a miscalculated short term trade opprotunity, I dont see where pointing this out would be offensive to a investor who purchased CBAI as a long term hold.
It would seem the investor would purchased during the grand opening timeframe would have known CBAI had 1.4 billion left in a 7 billion dilution, with the CEO on record stating the goal of 2010 was aquisition and reduction of toxic debt. As well as being on record in 2010 saying the goal of 2011 was inventory aquisition, revenue diversification, and stream lining the operations of the 2010 aquisitions. CBAI in jan 2010 was an otc penny stock with 7 bill a/s, no real revenue, no global foot print, toxic debt and a new lab that needed a buildout.
I would be surprised if most buy and hold investors coming in during that period would not have realized any quality ROI would be years down the road.
I have a hard time understanding why any investor who purchased for the long term would be concerned about the pps at this point, as they wouldnt be trying to sell now anyhow. The CEO has VERY CLEARLY thru pr's, interview,filings, and letters to investors,(second had statments attributed to him by enthusastic investors at a grand opening party in message board posting dont count,its just nonsnese) laid out the plan.
CEO has followed this plan unless unforseen circumstances has caused him to adapt or push back the timeliine. A major step forward in this plan (cmex) is scheduled to occur within 60 days.
I have a hard time seeing where a buy and hold investor does not see the positive momentum as to what is starting to come together.
I'm not sure the angry or disappointed post of mine your refering to, but I imagine it was regarding the proxi. I stand by those post. I was against the proxi ratio and would have preferred a smaller split and a concentration on organic growth. I prefer safety over speed, as I'm prepared to wait for ROI.
The vote went the otherway so I cant cry over split milk. I was also surprised an disappointed at the rate of the final 7 bill dilution, until the CEO explained to me (and all) that CBAI was broke.
So at that I can agree that the rate of dilution was necessary for operations even though I believe it was the reason for the Chill. Yes, If CEO deosnt know the exact reason for the chill he has a good idea.
Is it good or bad he doesnt say publicly? Flip a two headed coin and pick yes or no. If he didnt do anything illegal, he probable has a good reason for not saying. I dont think he did anything illegal. He may have been too aggressive, but I dont think illegal.
I place no judgement on any investor wether he is buy/hold, trading, or flipping- there is room at this table for all 3, as long as they dont profess to be one when they are really another.(not saying thats u, just generalizing).
And yes, if a current investor wasnt already aware of the majority of the information in this post then they are not listening to what the CEO has been saying as most of it is paraphrased from his interviews and filings over the past two years.
It's too bad they didnt have Sister Angela Marie in 3rd grade.
AIMHO GLTY/A
by the way you mentioned intrinsic value in your post ~ you may be interested in this
What Does Intrinsic Value Mean?
1. The actual value of a company or an asset based on an underlying perception of its true value including all aspects of the business, in terms of both tangible and intangible factors. This value may or may not be the same as the current market value. Value investors use a variety of analytical techniques in order to estimate the intrinsic value of securities in hopes of finding investments where the true value of the investment exceeds its current market value.
1. For example, value investors that follow fundamental analysis look at both qualitative (business model, governance, target market factors etc.) and quantitative (ratios, financial statement analysis, etc.) aspects of a business to see if the business is currently out of favor with the market and is really worth much more than its current valuation.
Sounds alot like where CBAI is right now doesnt it?
I wonder what that global foot print is really worth?
I wonder if any Value investors are taking a look?
My guess is were going to find out sooner than later
http://www.investopedia.com/terms/i/intrinsicvalue.asp
Cheers
KCA I understand your Chill concerns. The next filing should give a pretty good idea how much its has cost CBAI.
In the middle of june the dtc was asking the company for clarification on some shares, and clarification on information CBAI and sent DTC prior.
Here is the link to the CBAI agreement with Tangiers regarding the Chill.
http://sec.edgar-online.com/cord-blood-america-inc/8-k-current-report-filing/2011/03/21/section15.aspx
IDK where the Chill stemmed from. I would imagine it has something to do with the 1.4 billion dilution in 14 months. Shares were flying out fast and furious. I sure wasnt happy about it when I saw those kind of dilution numbers in that time period.
The Chill reason will likely remain a mystery, at least for now. I would say at least past the next Q filing. If the cost are a big blackeye on the report then I think its a big concern, and investors will start demanding clearer answers to whats causing it, and what the company is doing to resolve it.
If the effect is reasonable vs % revenue I dont think it will be looked as more than a concern.
At this point It seems it is going to be the former, and answers will be asked for. If he buys one of the LOI prior to the Q and the purchase is signigfigant what ever the Chill penalty it will be negligable vs CBAI new finacial position after the purchase. If 2 are purchased prior to end of Sept the Chill would be a nusiance.
Dont think he will be able to purchase the 2nd LOI without the lifting of the Chill though, as I think your right the financing would be tough if its Tangiers type financing for the 2nd purchase. He doesnt have that financing yet. He does have the first LOI financing. The cost of the first purchase could go up dramatically if the pps moves after the purchase of the 1st LOI negative to CBAI relative to the Tangiers agreement I posted above.
The Chill definately is a factor if its affecting signifigantly cost and time. The next Q will give us a good idea of its cost to this point. I would suspect there will need to be a resolution to the issue sooner than later. I suspect it will be resolved by the end of the year, but I would guess much sooner than that. If ultimately there is no CBAI impropriety in the cause, If the 3 LOI are purchased the cost will be insignifigant in the long run.
I imagine the SEC has looked into or is continuing to look into the Chill. I am comfortable investing at this time. Firstly because I'm betting the CEO did nothing outside his bounds to cause it. It seems that comes down to whether you think the CEO has integrity or not. I think he gets a bad rap in that category from alot on here, I'm not sure if he deserves it all.
I dont see where he has done alot of things against what he said he was going to do. He ran thru the 7 billion shares at the end hard, which wiped out any chance of longs payday during the last year of that stage. He had to do it CBAI was broke, he needed the money. Still is broke and is still using dilution for operations. He also made cryptic statements about rewarding investors that back fired on him in the eyes of many investors.
It seems mostly a disconnect between what CEO believes is a reward and what some investors perceive as that reward.
Lets face it, its a bad economy unless you bought a whole bunch of silver in 09. Many investors, including MANY who got stuck trying to turn a quick buck a year and a haalf ago and now find themselves a long. They are really traders who were looking to jump on the grand opening ride and got stuck trying to time the stock. They miscalculated the force of the dilution that the company was in the middle of at the grand opening and bought high, Very High .007 to .0197 pre split .70 to 1.97 post split. They are either here awhile (I think it will be shorter than they believe) or take their tax write off buy something else with what they have left.
Had those invesotrs actually did their DD as to what CEO said the plan was prior to the 7 bill dilution, he was very clear, some likely would had held off their investment. Most I imagine didnt go back and do this. Instead they saw the pps quickly rise between Dec 09 and mid jan 2010 and thought they were going to turn 5k into 500k in a year. That investor obviously didnt listen to what the CEO had said, as they would have realized CBAI wasnt the company for that kind of investment return timeframe. CEO cant be blamed for that.
What they did get for being stuck is a global storage framwork and 100/1 less of their shares, which takes away the 5k~ 500k dream, but it was only that anyway, there are no 14 billion m/c stem companies out there (yet) is what it would have taken.
So what for the investors was taken away in fantasy was replaced with reality and opportunity. The share structure is now in reality for a real company, and the CEO has given a clearly defined vision of the the second dilution.
His vision is very simple ~ and I think it is what he should held to other than having options tied to revenues, and attracting better finacing.
The CEO made it very clear the majority of the proxi was to attract better funding (r/s) and to purchase inventory rather than primarily for organic growth (a/s). He should be held accountable for this and only this at this point.
Come the next quarterly -- if there are nearly 100 mill o/s and none of the LOI have been purchased there should be a concern greater than the Chill concern. If after a positive outcome of the CMEX case in September, and there isnt an almost immediate closure of the deal and 1 of the other 2 LOI arent finalized then there is a serious problem, and investors should raise immediate concerns.
CEO maintains the cost of purchasing the inventory is $300/per vs over $1k/per cost for organic growth inventory, and this inventory has the same value $1k/per thru the eyes of current industry company assest valuation. CBAI financial reports shaould begin to reflect this. This cost basis should include the legal cost involved in these purchases which would naturally encompass the Chill as financing is needed to purchase the inventories. If this cost basis starts to near the organic growth cost basis, I think he should re-evaluate his plan.
No companies growth plan is a straight line. Because the CEO has been wrong on some of his timeline doesnt mean he lacks integrity or competence. If it was as easy as it sounds we would all be living off the annuties from the stems in the storage tanks in our garage.
It is important for the investor to filter thru the fog of the idle mind, to see what is truly important. CBAI, basically has been quiet pps wise for a over a year.
When I said I think it is a good time to buy, I am definately not encouraging any one else to do the same. Someone else investment strategy is their own business.
I'm buying because I sense at least a temporary decent uplift, and the pps keeps bouncing off .12. The next major batch of news is going to move it strong one way or the other. That news will will involve the LOI's, Q, Chill, O/S, court disposition, and financing.
I'm betting that batch will be a net positive and will move the pps upward decently at least until the dilution for the next purchase begins. It may not be a big profit window, but I believe there will be one. If I'm wrong any signifigant decline in the pps from here will signal a major problem that will have come to light. Shares are so cheap right now its a cheap bet to take and I think the odds are in my favor. I doubt the shares I am buying now I will be holding for the long term.
If I was out of the stock right now and looking to buy and hold I dont think I would buy until the Chill is lifted, there is a risk there due to the mystery of it.
If I'm looking to buy and turn in the short term I dont think the Chill will affect the next run, which if happens, I believe will happen by end September.
The Chill affects the uplist potential. I dont see an uplist before the chill is lifted, but I dont think the Chill is affecting the uplist timeframe right now. I dont see an uplist even without a chill in the short term.
AIMHO GLTY/A
Thanks for the Kudos, and thanks for taking the time to read it.
Cheers to you.
Thank You!
DoubleD I appreciate your frustration with the pps. If I didnt keep going back and revist the reality of what has happened with this company just over the course of the last few years, I likely would be as frustrated as you. Your one of my favorites, so I wanted to give you an understanding of why I'm buying shares now.
The reality of the situation is this. If you currently hold shares in CBAI then you have a solid investment that will pay off sooner than later as long as you are buying and positioning yourself and prepared to trade shares outside of your core position when the opprotunity arises.
That opprotunity exist mainly due to the solid decisions made by the CEO over the course of this company. He is not perfect, none of us are. What he has done especially over the last 2 years, has been an extrodinary accomplishment.
The reason I am buying shares right now is not because he may (at least) be storing placentas for the company in the link I posted.
My excitment on the article is more so in the technology of the collection. Between the cord and the placenta- The placenta is really were most of the stems are, there is no debate in that. The fact that one company (unk who) holds the patent for the technique to extract 10 times the amount of traditional method. 8 billion stems vs traditional 800 million. It takes 30 million stems per 2.2 lbs of body weight for effective treatment. For the 300 lb person it takes ~ give or take 6 billion stems for treatment. The placenta is the key to the next leap forward in this technology.
The industry now goes from saying they can provide matching for a person 65 lbs or less to saying they can collect potential effective treatment for people up to about 325 lbs. Think about what this will do for the industry. This no longer becomes a treatment option for a young child, the net has been cast to include the vast majority of us. One company holds the patent for this tool. This will fundementaly change the thinking of the use of stems as therapy, as there will be enough product to be potentially effective treatment. Couple this with the clinical trials due in 2015. Huge momentum in the industry is building.
This is a major major leap forward. When this leap happened IDK. What I do know is shortly after the Vegas lab opened. CEO started to pursuing the processing of placentas, which rose to be 5% of CBAI revenue in 8 months. I believe now he has 2 placenta processing contracts.
Contrary to what some on the board suggest that the CEO is incompetent, I would suggest otherwise. Instead it seems CEO has made a very wise choice to immediatley start concentrating on the placenta, he knows where the red gold is.
Understand what industry your invested in. It has moved from the boy in the bubble and bone marrow transplants(still occurring) moving towards an outpatient shot in the butt. This is an incredible medical transformation. As this revolution continues, people are going to make fortunes, HUGE fortunes, in many different aspects of the industry.
Look where the CEO has brought investors to get a slice of that $ pie from starting with 2 credit cards. 7 years later he is still around, even after a near economic meltdown in 2009.He was wise enough to survive that, ALOT of companies didn't.
7 years later he has a global storage network and processing labs on 4 continents. This Global footprint is larger than some of the most respected companies in the industry. Just the Vegas(17k sq ft) and China(200k sq ft) labs have atleast a storage capacity of a million stems. There are approx 134 mill world births a year.
134 million placentas a year x 8 billion potential stems in each one = 1,072,000,000,000,000? potential individual life enhancing stem cells or a potential help to 446,000, 300 lb people a year- every year. Except that number will conitnue to grow as the world population grows, and who knows what the future of the technolgy holds (see Dr Oneil). One thing is known for sure and in the forseeable future, the placenta and cord stems must be processed a frozen within 5 days. All this product has to go somewhere and quickly. They are going to go generally to the nearest storage facility globally.
If the CEO is correct, the value of a unit in storage is 1k ( I had a post where I demonstrated he was likely correct), once just the Vegas and China facilities are filled - CBAI will have an industry evaluation of 1 billion. CBAI will have a somwhat leeser claim on this value as they own 15% of the China operation.
Keeping in mind the new technology now available to extract enough stems to help a 300 lb person, as well as the continuing success stories of stems, How long do you think it is going to take for those 134 million placentas a year to start being stored?
Keeping in mind the logistic issue of storage, Where do you think those stems will be stored? Likely not far from where they are extracted.
- What company in 2010 positioned themselves to be one of the most signifigant placenta processing companies throughout the world? Looks to me like it is CBAI.
What was the feather moment that CEO promised but didnt deliever? I think it was CCEL. He tried to buy them twice and was turned down. Sure cant blame him for trying, and sure cant blame him for someone else saying no. Why did he want CCEl? I think he wanted there presence in the Indo-China region, CCEL is in Pakistan, and he wanted their menstral stem technology. Keeping true to his stated commitment to diversification of revenue streams, a strategy I highly applaud.
I agree its time to start filling the tanks. We are currently in a 20 million share dilution. Prior to the start of this dilution CEO announced he obtained 8 million in finacing for one of the LOI from Tangiers. This is the cause of the dilution. He is about to start filling the tanks. He now has the money to finish the deal.
There is another court date for ccmex in September, hopefully the last. Maybe he can move forward prior, but why? I would be disturbed if he finalized the deal prior to the final disposition in court. Why go into the expense of wraping the purchase up when he might have to unravel it if the decision is negative. Its the difference of less than 60 days. There is no reason to rush this purchase.
During periods of dilution in a penny stock lacking assests, there is no validity to the pps, its warped. Basically, A small group of people (financers and M/M) are going to mostly determine its direction, rather than large groups of people(individual investors).
The reason I'm am buying shares right now is somebody doesnt want it going below .12, its been bouncing off it for 2 weeks. Will it break thru? Maybe, depending on how long it will take to purchase the 1st company. After he puts 100k (ccelmex) in the tanks. We now overnight have a company industry valued at 100 million 1k x 100k stems. Once CBAI is valued at $100million. Do you think you will be able to pickup up 12 cent shares again? I don't.
What I'm confident in, is that after the 1st purchase and the pps strongly rises, now that the individual investor has the leverage of signifigant assest valuation. The pps is sure to drop again once he dilutes for the second purchase, but not back to 12 cents. I just may sell the shares I just bought when this happens and buy more back with my profits during the second phase of dilution. Its going to be a steadily rising rollercoaster. With both the high and low points gradually rising as the stems come in. Its going to be as predictable as it gets in a pps.
My core position, which I am losing my ass on right now, are not a concern for me. Those are the shares waiting for Dr. O'Neils prediction to come to fruition.
The managemnt structure gets corrected during the uplisting, that is a little down the road. It ultimately is important and necessary but not right now.
Right now the focus is filling the tanks. They are about to be filled. The golden opportunity to get a ticket to this profit party is now.
My opposition to the proxi was centered on one axis. I didnt want to give up my ownership claims (shares) in a company that I am confident is a sure thing.
I havent always agreed with what the CEO has said and done. One thing he has done in 7 years, has been to positioned CBAI to be a Global presence in the burgeoning stem industry. With 134mill world births a year there is going to be plenty of stems around, but there only any good if you have a place to process/ store them in very short order. CBAI now has places all over the world, and the industry with the new placenta collection technology has just made a giant leap forward.
Most Importantly ~ AIMHO / GLTY/A
Thanks for the additional info ~ yeah that would be something if CBAI is storing for them.
The thought of it gives one the urge to buy shares.
GLTY
Mkendra ~from your response I can tell you didnt read the link -
Or if you did you missed the SIGN.
There wasn't much philosophy in my post.
I have a little time today, so I will do a little of your DD for you.
Here's a little help ~
A private firm has developed a proprietary technology that collects stem cells from the placenta and umbilical cord blood, preserving up to 10 times more stem cells than traditional cord blood collection methods. It has the additional advantages of a) using an FDA-approved drug to mobilize stem cells from the placenta tissue, and b) relying on devices designed to enhance the collection process.
Dr. Robert Dracker, Executive Medical Director, Americord Registry, is a leading hematologist, transfusion medicine specialist and recognized leader in cord blood and stem cell banking. Dr. Dracker was recently named as a consultant to the Food and Drug Administration’s (FDA) Pediatric Advisory Committee.
http://cordadvantage.com/
http://cordadvantage.com/product-comparison.html
--- From the time of the Vegas lab opening within the 1st 8 months placenta processing rose to be 5% of CBAI revenue.
---one company has a patent on the tool to extract 10 times more stems from the cord and placenta than traditional techniques.
---the Dr who wrote the article heads the lab of a privatly held New York company heavily focused on stem cell placenta services.
--- CBAI CEO makes periodic trips to New York
--- the pricing structure for this companies services, is similar to CBAI's afford-a-cord program.
----now maybe my Bob Marley reference will make a little more sense. If not then there is some philoshophy that may be appropriate.
You can lead a horse to water..... well you know the rest.
By the way:
http://coedmagazine.com/2009/02/06/the-10-most-successful-potheads-on-the-planet-cool-enough-to-admit-it/
1 of them is very heavily involved in the collection of stem cells
Here is the link in my original post -- in case you wanted to finish the DD I started 4 u.
http://www.healthnewsdigest.com/news/Guest_Columnist_710/Dramatic_Rise_in_Autologous_Therapy_Spurs_Interest_in_Private_Blood_Banking.shtml
Oh -- one more thing-- I bought more shares today.
AIMHO GLTY
Keep your eye on the Prize...
Life is one big road with lots of signs, so when your riding through the ruts, dont complicate your mind; free from hate, mischief and jealousy. Don't bury your thoughts, put your vision to reality.
~ Bob Marley
.... it will be well worth the wait!
http://www.healthnewsdigest.com/news/Guest_Columnist_710/Dramatic_Rise_in_Autologous_Therapy_Spurs_Interest_in_Private_Blood_Banking.shtml
AIMHO GLTA
Dont be fooled by the illusion of delus(tion).
If your hoping for this stock to explode at any minute, your likely in for a moderately short wait. If you take advantage of your opprotunities in between, then you will likely be moderately happy with the results. Once the illusion is over, if the plan works, you will for sure be very very happy.
Dew ~ use to always post, if your young, this stock can make you rich. He's right, as long as the science holds up, and CBAI can hold out.
Investors are tired of this stock for sure. Big block investors aren't coming in until the management structure is realigned and expanded, and until shares are no longer used for operations.
In order to sense when that is going to happen, we have to look at the plan. It helps to understand "the plan" if you break it into its parts.
Look at CBAI1 as the global foundation, supporting a floating central hub. That hub being the individual. With the labs being the spokes to this hub. As CEO informs, there is a critical shelf life of stems, so they must be processed within several days to maintain their usefulness. This necessitates a global network of storage facilites, as global logistics and regional nuances prevent a singular global storage facility. Once the stems are frozen and stabilized, then they have at least a generation of usefulness.
CBAI1 with 7 billion a/s was this global build out. Why did it take 7 billion shares? For 4 real reason. 1. We are in a negative economy situation~ funding is hard to come buy. 2. Global stem demand is not yet here. 3. Big Block investors had no interest in supporting the global buildout in a crowded industry with lack of consumer demand. 4. CEO has made mistakes,(acknowledged) during that period of dilution.
The end result however was the successful building of a global network. The opening of a Biocells office in Miami signals the beginning of tying in this network. The difficulties and barriers to the transportation of stems across borders should not be underestimated. The ultimate goal however is the buildiing of the global logistics to deliver stems to the hub(individual) were ever in the world they may be. Until there is global awareness and acceptance of stems, the delievrey may work in reverse, ie - medical tourism, where the hub goes to the stems, ensuring proper delievery. For some the stems will represent their final chance to live.
CBAI now has 4 labs in the most prosperous countries on 4 continents, The longest flight time between labs is about 18hrs, with an avg of about 12hrs. Very good global positioning.
The understanding of stem processing time frames, global demand and border nuances, helps to understand the second part of "the plan"
CBAI2 is what we are experiencing currently. the next part of the plan. It began with the r/s and a/s. The end result is a company that is supposed to be equivelant or greater than the invetory of China Cord Blood $3.52 pps, 52 week-$5.96, 2012 projected $12 pps 74 mil o/s, 246 mill m/c., solid investors.
6/23/11
Golden Meditech to Increase Stake in NYSE-listed Affiliate -- China Cord Blood Corporation to 39.5
How is he trying to get there? By buying the stems(invetory) from struggling companies, and companies unable to develop a global network, a necessity in the industry. This is the industry consolidation CEO has been talking about. Whether investors agree or not this is the path CBAI is on. It is true CCB got to their level largely thru organic growth. Their growth continues to be mainly organic and they have a large cash reserve. When this phase of the plan is complete CBAI wont have any of that.
What we will have (if the plan goes right ) is about the same inventory 187,000 stems as CCB. Inventory that the CEO reports is valued at $1000/per. If he is correct CBAI2 should have a market cap to reflect same or about 187mill at a cost CEO reports of approx cost of aquisition of $300/per or 56 mill.
Where is this invetory ~ Ccelmex and the other 2 LOI (one in south america, the other in the US). If the plan goes correctly that invetory should be CBAI's by this date 2012.
Once the companies are purchased, CBAI should have as many stems if not quite a bit more(ccelmex alone will bring the total to 100k). But will be top heavy on shares relative to other competitors , and likely will lack global demand until many trials are complete in 2015. This will necessitate CBAI3.Its the reason ceo wanted the 500/1 split, he didnt want a second correction. Fot the investor a second correction is better, as it allows accumulation of shares and a very low capital cost. Basically a kid with a lemonade stand can afford to buy alot of shares. Allowing profit opprotunities during the minipulative period of dilution. This will be a much smaller window than the 7 bill. dilution. This will occur in less than 12 months, as opposed the the frist dilution 18+ months.
The third phase of the plan is an uplisting and a management structure reflecting a big board company. This dependent on(product demand) will attract the Big Block investors, eliminating the need to use dilution for operations and funding.
This should all happen by the end of 2012. As dilution continues, if at least 2 of the 3 LOI are not finalized by the end of this year, there is a serious problem. As the split and a/s specifically were going to be used for operations until the first purchase, from that point on dilution was to be used for invetory aquisition. If come the next Q the o/s have increased greater than 80mill and none of the LOI have been purchased, then there is a serious problem, as CEO will be burning thru shares to fund operations.
If the plan pans out and global demand for stems CBAI should rise with the industry, an industry that is dominated by a few global players. Interestingly enough, China Cord Blood currently has no where near the global capacity CBAI just aquired last year. China Cord Blood has a pps projection of $12 by 2015.
There was a good rise from approx .12 to .17 over the past week. Minipulated? Without a doubt. It will be the pattern during this phase of the plan, up until at least the 1st LOI is purchased, and shouldnt be after the 3rd LOi is purchased.
If investors were paying attention, then they had an opprotunity for profit, not alot, but good profit (isnt it all good) none the less. That profit didnt come with an investors long shares(over a year). That profit comes with newly purchased shares post r/s.
Right now CBAI is under potential investors radars. Most dont understand the industry, let alone the patterns of this company. This gives those who have understood early on the vast potential of the industry and the tremendous opprotunity with CBAI, a chance to load up on very cheap shares. An investor can get more tha 5 shares for a $1. If the plan pans out ~ there will never be an opprotunity to get shares this cheap again. This will last until the 1st and possibly thru the second LOI purchase. After this, most of the shares should be used, and the positive pressure of likely more than 150k inventory @ $1000 /per valuation should push the pps up fairly quickly, were it will remain. with the possible exception of a strong dip when the second share correction takes place, if that correction takes the form of a r/s, but there is no gurantee of that.
What is guranteed is a last golden opprotunity to accumulate shares and set your core position, as well as play the minipulative diluton rises and falls, as the industry begins to flourish, and CBAI fills its tanks.
The organic growth is the long term model that comes into play after the uplisting.
If you go back a listen to what Dr O'Neil says as he describs the science of stems, then you will understand when Dew says if your young, this company can make you very rich$. Dr O'Neil describes the "Holy Grail" of the industry ~ Replication- basically The expansion and adaption of "neutral stem cells" into what ever purpose is needed for the Hub(individual). Dr O'Neil says this revolution is not 30 years away, but its not 10 either.
The ability to turn stem cells into blood, and hearts, and ear drums, and livers, and nerves is - for most people today is unimaginable, but research going on right now says its whithin reach. If this technology comes to fruition and a human is able to grow their own new heart, or brain cells to repair stroke damage. If CBAI is top company in the industry, than as little as 10k shares will make the investors who holds them a very rich person.
If your not young enough or patient enough to wait, then have comfort in the fact the industry analyst project China Cord Blood to have a pps of $12 by 2015. CBAI already has a larger global storage network than CCB, and if "the plan" is successful will have at least as many inventory by this time next year.
I voted against the r/s and a/s for ratio and timing reasons. Others disagreed and the split went thru.
There is no point in rehashing CEO's empty promises during th 7 billion dillution. He is human and believe he has learned not to make these kind of cryptic statments. The pr's of late have been fewer but of more substance.
The CEO should be held at this point to one thing, the use of dilution for the purpose of purchasing processed invetory. Nothing more nothing less. Thats his plan, thats what he wanted the proxi vote for.
If the next q results show a large dilution and a LOI is not purchased, then investors should scream for change.
If CBAI has at least 100k stems by the end of the year, then the plan will be working and every investor who invested in the past 2 years will be in a position of profit. Whether one takes that profit and leaves or keeps a core position and waits for Dew's prediction, will depend on whether the investor believes in the words of Dr. O'Neil, or how long they think they will live. If stems become what they seem they can, than an investors lifetime may be alot longer than they ever imagined.
If the plan or the science doesnt pan out, then your investment is lost. But what shouldnt be lost is the fact this is a penny stock. We all new prior to buying that it was a high risk investment. We cant expect it to behave like Google or Coke. Every investor knew(or should have) that the company had very little funding. CBAI definatley isnt a sure bet, but I'm betting its a sure a bet as most other penny stocks.
I think Ben Franklin said- A penny saved is a penny earned. I think I will keep saving my CBAI pennies, and hoping I live long enough to see Dew's prediction to fruition. In between there will be plenty of opprotunity to change some pennies into nickels.
If its a washout, I think it was a cow who said ~ No use crying over spilt milk.
AIMHO GLTA
I appreciate your compliment. I would rather it be stickied to investors brains. I undestand CEO is sensitive about invesotor sentiment. The more investors understand the true position of CBAI in relation to the industry today and into the middle term, the less investor pressure he will need to abosorb allowing him to concentrate on putting it in place. If he can put it into place it will be VERY good for us all. He has alot less room for error from this point forward. Profit opprotunities if one wants them are right around the corner. If aquisition cost spin out of control, it will be a disaster.
AIMHO GLTY