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I tend to agree with you. the use of the A/S should be a concern for shareholders. This time around there should be a tight grip on them.
They should be restricted to use for the uses deemed to add profit in the near term for their use, not merely for growth.
Seems also a good idea if possible to cap the amount that can be used for options. Very soon those options will be very valuable, they should only be awarded if only measurable profit benchmarks are met. If a/s are used to pay bills, then there should be a cooresponding decrease in the number available for options. I dont know of anything that would be a bigger profit motivator for management than tying their options to benchmarks, other than direct reduction in pay for lack of profit performance.
It would be hard to screw up CBAI's future at this point.
IDK what restrictions can realistically be placed on the a/s.
The more , the better for the current shareholder.
IMO this is still a discussion about who will own CBAI2. Right now current investors own 100% (less what is left in the treasury-IMO not much). 1st proposal 80 a/s we kept about 13% ownership. This proposal 225 /s - ownership goes up to about 25%.
The debate is not the number of shares its the % of shares. As % = ownership.
The shares have to be reduced, no doubt. 100/1 split is the limit of an acceptable split.
The a/s is all that really matters.
If there were going to be zero a/s - You could go by an armored car now. With what we can pretty much BANK on over the next 4 yrs IMO is strong organic growth. If the china operation in total becomes the size of China Cord Blood - just that operation would make us 15% of CCB. They dont build a 200,000 sq ft facility- if they dont know if they are going to fill it. The pps would explode, by 2015. By 2015 the stems public conversation will be completely different than today.
It would seem I could make one almost completely accurate generelization about every investor on this board. Virtually all of us agree, Stems Work, and their uses will only get more widespread and acceptable in the future.
If we all can agree upon this. Then we all can naturally agree on a time frame of 2015. As this is the year the a vast amount of stem clinical trial results are due out.
Here is just a partial listing-
http://clinicaltrials.gov/ct2/results?term=stem+cells
If just ONE of these trial proves stem cells a viable use for any wide spread application, your investment is GOLDEN!. Think its going to happen? I think I could say most investors do. BCBS is still and investor arent they?
If this happens could it sustain a 225 million s/s - Without -A -Doubt.
The most important questions for the current investor IMO are:
What will it take finacially for CBAI to enter 2015 prepared for the onslaught?
What % of ownership will CBAI1 current investor need to surrender,if any, to bring CBAI2 into this financial position?
R/S isnt a reduction in who has rights to the pie. Its just the reduction in the size of the pie itself.
The A/S is what brings more forks to our pie. What would be the reason(s) to let them have some?
There are two questions to be voted on at the meeting.
1. R/S - I think the CEO listened to the current shareholders concerns.
2. A/S - I'm not sure current investors grasp the importance of this question, it really is the most important of the 2.
I think shortly most will start to grasp its importance. Or I at least hope so.
Yesterday was a VERY Good Day for CBAI -- the 1st question was answered. That answer is acceptable to most.
the second? -- Well thats a whole different ?
Thoughts?
AIMHO GLTYA
Thanks- seems
was the most likely reality from the beginning.
IMO think the 500/1 announcement was as much about testing the waters of ownership grab by whomever our New "In-Laws" are going to be.
As it was a cover for the selling off the rest of the treasury shares. I would imagine before the split will be told the rest of the shares (or the great majority) are out there. Which for me is no issue.
AIMHO GLTY
Very Good Day for CBAI!
Thanks, that was nice of you to say.
Dont blame Matt, he is doing his best. He is Doing a VERY VERY GOOD JOB.
He has done such a good job. There are "Peoplties" thsat want as much as they can get of it. Obviously he should get his. He is as invested as me. So if I lose and he wins. I wont disbarage him, As long as he didnt win at my expense, and he meant it to do it.
Its up to me to protect my own interest. Matt (CEO) is not my mother. I don't expect him to draw it out for me, he is not in that position that he can. I compliment him tremendously, for speaking to me straight forward and upfront about my investment. I think he sends me (not personally) when he can. Its up to me to figure out what they mean.
Its up to me to see it for what it is and demand my voice be heard- thru my vote. I am part of the 3rd party in the negotiation(the current shareholder). Most, honestly dont see it that way yet. Trust me the first part of the negotiation is over, we werent in that meeting. Now the proposal is being brought to us. Gurantee who ever was in the meeting, is paying attention to what we are saying today. But there is still two months to go. Thats why. The ones who what your ownership know TIME mellow objection. Thats not MAtt- thats from those who want to own me/you/Matt.
Thanks Matt- never meet him, its irrelevant to my understanding of my investment and dont like to cloud personality with investement. It clouds the understanding of results.(I like to call him CEO. Wouldnt say a word about CBAI if I ever met him (probably exagerating).
Definately its up to me, well up to the group I'm in(current shareholders) to protect my investment.
I truly beleive, he knows its a bad deal, and wants us to resist. So he can go back to the negotiating table to the money he wants, and tell them if you want in its going to have to be on better term to the current sharholder, because I cant get this proposal past them.
Based on what I can ascertain is very near term revenue and cash, I confident those that want in will changes their in our favor, wants current investors as a whole tell them they cant get in under those terms.
if they hard ball. We will have very shortly the organic annutiy growth to wait them out. Trust me it will be worth it!
AIMH0, GLTY-- Thanks for your kind words.
Thanks!
I agree with you timing is everything. : )
GLTY
I forgot to tell u one thing in that last message.
GE Capital for accord-a-cord he is talking about is called
Care Credit- I use it at my dentist. Its like an approved line of credit, that you can use for a whole myriad of medical purposes. You get a card like a credit card. I'm just not sure if provider swipes it or just take down the card number. I just tell my dentist to bill it to them, but never give them my card.
What ever service you are utilizing gets paid upfront to the provider. I'm sure the provider pays some kind of fee like resturants pay visa on every use.
The patient then pays Care Credit in monthly installments. As long as you pay the entire bill within 18months - there is no interest if you pay it off in 18 months/your not late on a payment. If dont pay it off in that time or are late on a payment you get charged interset from the debts incept. The interest rat is high like 20% or so. So if your late on a payment you can really get screwed. You can set it up electronic funds transfer to protect against being late. Its really prety useful. I had 5k in dental work recently , nmy portion was 2k, I can set up payments to pay it in 18 months, and keep my 2k in investments.
I could definately see it as a positive for the Afford-a-Cord program, and I'm on record thinking the program is flawed, based on the interest financing associated with the program. From what you mentioned, it actually very easily for the private storer could be an interest free loan.
Care Credit actually makes me think afford-a-cord is not such a ripoff as I first believed. Since the first 18month of interest can be free. Most people would pay off the initial fee in 18 months - its only 2k. So it really doesnt add real cost to the extended purchaser as opposed to the upfront purchaser.
Really because of the 18 interest free, really does open up a whole new market for private storage. Another in the cap for the CEO! CBAI gets paid upfront and parents gets 18months interest free to pay.
I was unaware GE Care Credit was available for Aford-A-Cord.
Thanks for the info. I wanted to let you know what it was.
GLTY
Thanks for the compliment.
I dont blame CEO - I dont think his purpose is evil. I just think its misguided. The ones selling him the bill of goods are the ones showing him the money. They want as much control as they can get. He wants the money. He is trying to get negotiate the best deal for shareholders. He has some seasoned parties across the table.
The only even possible negative I could say about CEO- IMO is he is going after conveience (getting the money from outside) From from substance(getting the money from prosperity within). There is room for both, just not this much imbalance.
That's why its important for current investors to keep this front and center. We are the third factor in the negotiation. If we say No, the bill of goods dont get bought.
IMO Substance VS Conveinence- Substance wins in the longterm.
AIMHO/GLTY - Thanks again for the compliment.
Not with a re-auth of 80 mill shares 86% out the ownership in treasury.
Without it it stands on its merits. Thanks for reposting it. Its still a positive for the current shareholder. The flaw is it slows shareholder pps gains. With a 80mill re-auth the revenue gains needed to sustain and grow the pps after the initial pps explosion with 14mill shares would be difficult as 86% of the company is coming onto market. Ultimately it may depress the pps as revenues caught up with o/s.
I post something simialr around the time you found that post talking about a 100/1 split and I beleive no reauth. The shareholder value difference is signifigant.
I agree there has to be some kind of re-auth following a split. At those low number shares somebody could just buy it and maybe take it private.
Which really is a negative potential (smaller risk) that hasnt been talked about.
80 mill protection on 500/1 thats extreme and Unecessary.
A % of a/s is healthy for the shareholder - just not 86% of ownership, thats a farce.
AIMHO/GLTY
Thanks for the through response.
I agree with you much of the current inventory reveunue from cmex may be gone. The 8k avg though comes right from CBAI press release about it. I have to believe CEO on this one. So I dont believe that number is blue sky. If so we have to say CEO is being inaccurate on material information. I dont think your saying that. The inventory averages are also built into the LOI.
Their real. From the close of Cmex on all new revenue from inventories will be CBAI. Inventories that avg 8k new a year for the past three years - Thats a fact.
http://ih.advfn.com/p.php?pid=nmona&article=45566917
And all Market Valuations (leverage) of all current stems stored at cmex will be CBAIs. <- thats a fact.
So he will get both future revenues and current/future inventory value from day 1.
He further says he pojects the combined CBAI revenues to be approx $14mill IF they continue on the current growth rate.
Do you think organic growth is going to continue at this rate? If so a 500/1 and 80mill a/s with stagnant growth would be a DISASTER! He would for sure have to dilute for cost, not value.
The organic growth rate is about to EXPLODE! Just look at China Cord Blood CCB. The CCB link in the post I sent you breakdowns CCB revenues. The MAJORITY of their revenue is from Annuities from private cord contracts. About 5% of their revenue comes from Fee's for matching receipients to stems. (the BANKING in stem cell banking.) CBAI will soon start building a foot print here with use of the DNA testing kit.
We generate substantially all of our revenues from subscription fees (private annuity contracts). We intend to grow our revenues by enlarging our subscriber base and increasing our penetration rates through expanding our hospital networks and enhancing our sales and marketing initiatives. In addition, the nature of our business requires us to deliver our services to our subscribers on a long-term basis. Therefore, the contracts with our subscribers are typically for a period of 18 years. The contracts can be terminated early by the parents or further extended, at the option of the children, after the children reach adulthood. The payment for our services consists of processing fees payable at the time of subscription or by installments over a typical contract period of 18 years depending on the payment option elected by subscribers and storage fees payable by our subscribers on an annual basis for as long as the contracts remain effective. This payment structure enables us to enjoy a steady stream of long-term cash inflow. We expect such long-term cash flow to continue to increase as our subscriber base continues to grow. In addition, we generate a portion of revenues from the fees we charge in providing matching units we collect from public donors to patients in need of transplants.
http://secfilings.nasdaq.com/edgar_conv_html%2f2010%2f10%2f20%2f0001144204-10-054516.html#V199375_20FA_HTM_TBO
The business model of private annuity banking contracts is about as pure organic growth business model you can get. CCel Mex as far as business models is its twin. CCelmex is just shorter (smaller market). CEO just bought his cash cow.
No where in my last post did I say CEO should not have leverage. A 100/1 R/S gives him the same 80 a/s as he is looking far in the 500/1 split.
The force/source of the leverage just changes somewhat. Thru organic annuity revenue growth, as demonstrated by the revenues of CCB/CMEX - This business model creates alot of INVENTORY(leverage against borrowing)/CASH!
The SAME thing CEO says he needs Recapitilization for. Its not CBAI past/current revenues that matter. Its about to be what the revenues from the dilution built out are going to be. He spent the money wisely.
All anyone needs to do is look at the growth and revenues of CCB/CMEX over the past three years. He said he was going to apply this business model globally. Somebody would have to be blind not to be able to see the revenue from annuity private banking that the fruits of last years built out is about to generate.
There has not been a demonstratable need to wipe out 80% of current investors investment value and give it to someone else.
No matter how important their title seems. Or how much money they have to invest, they shouldnt be just handed the ownership from current investors. Especially when the writing is on the wall, the money is about to roll in.
He is going to have to demonstrate why he needs the money. If it is for what the other thing is (see mrl). (other than annuity banking) Then he is going to have to demonstrate why he cant get the funding/leverage from the global organic cash cow he just set up.
If he cant explain it, the split is about something other than funding/leverage. So far he hasn't explained it, as even to a 5th grader it doesnt make sense!
The only explination that makes sense thus far is it is a grab for ownership, from the people that he wants to get a big block of money from (and have them set up an internal management and accounting structure within CBAI(DW). The only cost of secondary leverage that makes sense!
Their are 5 top management positions in CBAI, CEo is basically CEO and CFO - There really is no corporate structure to manage the growth that is about to happen. CEO while very talented cant keeping doing it all.
IMO DW is likely going to come in as this structure and build it out. One of MRL connections is going to be the other the side the product development. In between is the current investor.
DW(administration)---Current(7bill share)Investor----?(operations)
How much the two ends are able to grab, will leave whats left to those in the middle.
Forget CBAI and 7bill shares and a .004 pps - THAT CBAI for all practical purposes is DEAD!
The only reason it matter is the cards (shares) are being reshuffled on top of its grave. Depending on whose dealt the Royal Flush (86% ownership) as opposed to Two of a kind (14% ownership), will determine who reaps the benefits of whats about to happen.
I see your tired of the r/s talk. I wont ask you any direct questions about it anymore. To me though and I think the great majority of Longs, it will be subject # 1 until April.
I think most longs already take it for granted the revenues and success of CBAI is here very soon. they thought it was here even before the 500 proposal was announced. Whats left to determine is who gets 1st class and who gets coach on the rocketship.
IMO its vitally important that all who will vote clearly understand whats at stake definatley a day before the vote.
Disengagment to the substanace of A proposal,then a demand of a quick vote by leaders (CEO) of the voters (current shareholders), is the same way the Federal Bailout Bill was passed. Two years later the Fed is buying $600 Billion of its own debt,not in a good way. To CEO's honor, he has given all current shareholders plenty of notice to decide.
A healthy debate about it is essential, thanks for yours.
I think we pretty much agree on susbstance.
we seem to differ I think in basically 3 areas.
1. I believe CEO gets everything he wants with a 100/1 and 80mill a/s.
You believe it will hamper his plans.
2. I believe the 500 split is a transfer of ownership away from the current investor.
You believe it will enhance the current investors profit potential.
3. I believe the annuity model is industry proven by Cmex/CCB inventories,cash on hand, and proven year over year growth, and is a basically a gurantee of CBAI's revenue from this year forward.
You believe this is still unproven and not a gurantee for CBAI.
The difference in # 3 is the crux of the r/s debate.
Those that are against ,not a split, but a 500/80 spilt/recap. Believe the revenues for CBAI are right in front of CBAI.Believe the CEO did a very good job with dilution funds. CBAI hasnt proven they need that much leverage for success at the expense of current shareholders, and they want to protect their piece of the goose (CBAI) that lays the Golden Eggs (Mars pps).
Those that champion the 500/80 proposal must be concerned the CEO's stated revenue growth strategy is flawed, and that he will have to have 80% of the ownership availble to find new money to stay a float. They must not think the diulution build out for organic growth he did last year is going to work. Its funny, some of them report to be his biggest advocate's. Yet they advocate like his dilution plan execution was a big failure. BTW- I dont mean you.
If its for a potential hostile takeover- A 100/1 70-80 a/s leaves over 50% of the shares in the treasury.
Thanks for reading that post and your insightful feedback.
AIMHO/GLTY/A
Neck- this is specifically for U.
I would have sent it to you as a PM - but I dont have that capabilty.
Its WAY too long for most on the board to read it. I'm sure if you read it all,it wont be in one sitting. If you choose not to read it I wont take offense.
IDK if the 500/1 proposal is a tactic, real, or something in between. TIME will tell.
What I do know is come the APRIL vote wether it makes a difference or not, if the proposal stand as is and the justifications are the same. There is no way I could vote to give to someone else 80% of my potential EXTRA TIME in life.
I hope if you choose to read my reasoning, when you are done (hopefully by the April vote! :) ) you will see it the same way I do.
If not, no harm. I hope at least it was an entertaining read. It took me awhile to write it.
Please dont history, math, or spell check me to death- unless any mistake materially affects the main point, or is completly confusing. Im sure its filled with grammatical errors.
Main Point:
CEO will be able to accomplish all he wants to and have all the resources he needs without having to do it thru his 500/1 proposal, and the proposal as it stands today is a clear attempt to transfer ownership from the current investor to high dollar investors. More for the companys conveince, rather than for the good of the current ownership or for the ultimate good of CBAI.
I hope you enjoy - It took me a long TIME to write it. GLTY
------------------------------------------------------------------
I agree that would be the pps breakdown on 100 v 500 split @ a 42 mill market cap.
But that misses my point which is my ultimate point.
A 42 mill market cap after either split IMO is basically irrelevant. Relevant only in the regards to its distance from a 100 million share company.
Once the split happens the pps isnt going to be sticking around very long where it starts.
IMO - it should naturally begin to gravitate towards the Markets valuation perception (whats the market thinks CBAI is really worth), relative to revenue and if there is 80 a/s recapitilization relative to the likelihood of dilution and at what timeframe.
IMO the pps will begin to gravitate towards this number.
Depending on how far the o/s are and where they are positioned relative to this number, will determine the direction and speed of the direction of the pps after any size r/s.
The main two things which will alter this direction (what ever direction that ends up being) is revenue and dilution. Each could act independent of one another or in step with one another. With potential good and bad results for the shareholder depending on the facts surrounding news on each. Meaning dilution for expanded revenue my have a positive impact on the pps. Just as a decline in revenue or dilution to pay the bills, likely will have a negative effect.
So how can we try and calculate the likely speed and direction of the pps after a 500 v 100 r/s?
Hmmm? Well, my physics skills are about as bad as my pselling skills so let me try and get a sense of it in a different way.
It would seem would have to begin by looking at the industry as it looks today and whats around us (CBAI).
For a moment we have to put aside mrl intriquing connections as to what we may have in the FUTURE (however as we will see CRITICAL in determining if 500/1 r/s is a good deal for the investor), and just deal with - what we have NOW, and the short term after dilution.
NOW - We have a 7,000,000,000 Billion share company.
IMO one of the main reasons for the early announcement is CEO is getting rid of the rest of the shares. IMO I am all for it and unconcerned about same. CBAI might as well use them up thats what they were authorized for. Again its JMO I may be incorrect, for this post its irrelevant.
A dollar bill is likely about twice as complicated and costly to make as a share certificate. A dollar bill currently cost about 6 cents to make.
If the CEO had make and hand a share certificate to each of his shareholders 7 billion share certificates would cost him $210,000,000 dollars (7bill x .03).
CEO would definately know each and every shareholder by name after he was done, as he would see most of us at least 1000's of times over and over. ( Maybe we should see if we can require this, as then maybe he will lower the split, so he can save TIME from coming to take them back from us :).
Thank you for my share certificate Mr. CEO- shake~shake : ) ( : ...Thank you for my share certificate MR CEO- shake~shake : ) ( : ...and so on and so on and so on and so on.......
Here is my share back Mr CEO- shake ~ shake : ( ) : . Here is my share back Mr CEO shake~ Shake : ( ) : and so on and so on...
------u get the picture.
DEFINATLEY -- CBAI to flourish needs a R/S--
The level of the split in relation to the future a/s, and revenues is the difference in your investment.
500/1 = 14 o/s mill & 86 mill a/s = 100 mill share co.
This likley will be about right for the size and revenue of CBAI just prior to the split.
We will look about like CCEl but likely in a better position as we would have taken a licensing revenue source from them with the purchase of ccelmex, giving CBAI nearing 100k stems, with 14 mill o/s shares, with ownerships and partenrships in various places throughout the world.
If there is no further revenue news, the Market would likely see CBAI as simialr in value as CCEL. One difference would be CBAI has similar O/S for similar stems banked(as CEO stated how companies are valued in the eyes of the industry), but would have potential 86% of the ownership in a/s.
Dont you think the Market would treat this as a positive if the industry evaluation puts CBAI assests (stored stems) at roughly the same level if CBAI continues aquisitions, and revenue growth equal to ccelmex? Likley! as long as the 80 a/s arent released.
Do you really think 86% of the ownership of CBAI is going to be kept under lock/ key for very long? REALLY?
Likely not.
If the use of the shares brings in revenue greater than the shares cost, then dilution (or recapitilization-however u want to call it) would likely have an upward effect on the pps. The speed IMO would be determined by the distance from which the O/S distance is from The Markets valuation of CBAI's actual/potential revenues after a revenue or aquisition annoucement, relative to the new # of shares + existing shares combined distance from the ultimate 100 million share company- CBAI's ultimate stated goal.
At the same time there would be fewer A/S shares putting tremendous upward pressure on the pps as long as new revenues out pace dilutuion. The greater the gap between the two, and the farther below the pps is from the Markets value evaluation, IMO the faster the pps will rise to this level. The closer it is the slower and less dramatic the rise.
To continue to try and figure out our direction and speed, we have to think about what CBAI's next level likely will be (Again putting aside MRL -info for now).
Seems resonable to think that CEO's likely next industry level he is working very hard towards is the level of say China Cord Blood. (CCB) Avg pps -approx $4, approx 70 mill o/s and approx 140k stored stems(a 50% increase year after year) projected 57,000 stem storage growth rate this year, with projected 187,000 stems stored by the end of this year.
They are a dominate stem cell banking company in China. They hold a license in 2 of the 6 licensed zones (and involved in most of the others) with an approximate potential market of 1billion and a zone specific market of approx 200 million people.
They had a new quarterly record 12,000 stem contracts 2010. They have mainted a 50% organic growth rate year after year. They have $47 mill in cash and 6.6mill in debt. They are a leader in the organic growth business model in the stem cell banking industry. Their projected pps in 2015 is $12.00 @ their growth rate by 2015 they should be storing about 360,000 stems -- 3 yrs @ approx 60k/yr .
http://www.proactiveinvestors.com/companies/news/8314/china-cord-blood-increases-q1-profits-and-sales-on-record-new-subscriber-growth-8314.html
CEO explains banking companies are valued as to number of stems in their inventory.
PK purchased their stems for $2300. Based on the projected industry growth rate of $5-15bilion by 2015 Seems resonable that a valuation of a stem by then would be about $3k.
Very plainly -if you take a $3k market stem evaluation by 2015 - Would likely put a vlaue on CCB of about $1billion dollars / by 70 million shares approx $13/share.
A very nice pps rise for organic growth dont you think? Triple a sutainable pps in 4 years? Sustained thru organic growth, where they got the $47 mill in cash. (note -They recently did authorize some dilution 13 mill shares - offering to cash out 8 warrants for 1 share).
This is from CCB SEC filing-- it speaks to CEO what CEO is refering to when he talks about how the iindustry values companies - by their stem "inventories"-- for CCB it 3 ways, private organic growth (about 120k, processing of donated stem(approx 13k), and this way :
[color=red]Another source of donations in the future may be the cord blood of the newborns of our former subscribers who cease subscription for our services at the end of 18 years and do not demand return of their cord blood units and the cord blood units stored by our subscribers who fail to pay. We require our employees to fully inform all prospective subscribers of our policy of releasing cord blood units to our cord blood inventory in such circumstances, and our subscribers are required to give their consent to this policy when subscribing for our storage services. In the opinion of our PRC counsel, JunZeJun Law Offices, a consent of this nature is enforceable under PRC law. Based on information available to us, treating cord blood units abandoned by former subscribers and releasing such units to cord blood bank inventory available to patients in need of transplants is a common practice followed by cord blood bank operators in China.
I imagine when CEO talkes about stem invetories and MRL speculates about if CBAL is sitting on a pile of stems. the above may bring some clarity.[/color]
http://secfilings.nasdaq.com/edgar_conv_html%2f2010%2f10%2f20%2f0001144204-10-054516.html#FIS_COMPANY_INFORMATION
After Ccelmex closes, CBAI will have approx 100k stems. CBAI will have ownership of labs on three continents and 4 countries. It will have minority stakes in labs in 2 other countries on two different continents. According to CBAI info CCElmex has avg stem storage rate of 8k/yr.
If the 3 other owned labs combined do half cmex year rate -4k. by end of the year should at least have growth rate of 12k stems/yr. 1/4 the organic growth rate of CCB.
Is the CEO going to concentrate on organic revenue?
At this stage looks like he is trying to get to CCB level buy buying into the stems, thru aquisitions or partnerships. Anything wrong with that? Probably not, if CEO is accurate to say the Market values companies via amount of stems in inventory. As long as cost to aquire isnt greater than worth. CEO advising cost to aquire is avg about $300.
IMO when he talks about values on high end $2300 and low end $500 on values he is talking about purpose = value.
Likely value of a research cord is on the lower end and a private banking sample on the higher end(annuity contract).
In order to aquire stems thru aquisiton he is going to either need $ /shares or one of the other. Thus his request for recapitilization= 80 a/s.
He will either obtain them by sucking them up into the tanks of the 4 labs he has or he will buy or partner with somebody that has more stems than him.
After the Cmex deal he will be about 40k stems away from # of stems CCB has today (140k.
Could reasonably say ( based on how CEO says companies are valued) would have a pps of about 3/4ths of CCB if our shares were equal- about $3/share vs CCB $4.
If it splits 500/1 and CEO does nothing else after cmex aquisition - just with a 12k year stem bank growth/yr, by 2015 would have approx 150k stems in inventory. On the road to equaling CCB projected 360k stems and $12pps by 2015.
Right know with 7billion shares,ccmex deal, and a very low projected organic growth (not including any idversified revenue streams) CBAI could accurately be projected to be about half the Market evaluation of CCB according to how CEO says the Markets values companies (# of stems in inventory).
So a $12/CCB70 mill O/S in 2015 vs a 70mill O/S CBAI in 2015 - $6 dollar CBAI in 2015? The 1 mill CBAI shareholder under a 500/1 split - would be worth about $12k, the 100/1 split would be worth $60k.
Do you really think CBAI is going to have only 150k stems in storage by 2015?
Just what CBAI is involved with today- they have access to over twice the population of CCB market ( NA -300mill, central/S America 1 billion, europe 500 mill), in addition we are involved in CCB front yard China. Just in organic growth we have twice the population access to try and equal CCB projected (based on current growth rate) 360k stems by 2015 - based largley on organic growth.
Think CBAI is going to catch CCB by 2015? I do.
Think it likley will go well past CCB by 2015? I do.
I have no doubt in my mind CEO is building an awesome company!
Thats why I invested in him so early. Much earlier than the potential investors that are on the outside wanting the 500/1 r/s.
You have demonstrated from one of your earlier post the power in revenue of organic growth.
I have just demonstrated what a stem banking company can accomplish thru organic growth/ 70 million O/S---$ 47mill in cash, $ 6 million in debt, 140k stems, $4pps and a 2015 pps projection of $12.00. With a organic growth rate of approx 57k stems a/year, in a market 1/2 the size of CBAI current (just owned labs) markets.
If CBAI reaches half the pps as CCB 2015 pps $6 - Just using what CBAI has now- whether its 100 or 150 mill o/s in the amount of revenue availble in the industry over the next 4 yrs, do you really think CBAI wont be half of projected CCB by 2015?
the 500/1 market cap- if 100 mill shares are o/s by then -$6- $ 600,000,000 m/c
the 100/1 market cap- if 150 mill shares are o/s by then- $6- $900,00,000 m/c
CCB projected market cap in 2015 360k stored stems, 70 mill o/s, $12pps = $840,000,000
Think CBAI revenue will be able to absorb a $900,000,000 market cap by 2015?
Just with small organic growth (12 k stems/yr) and what we own after ccmex. CBAI will have half the stems CCB has in 2015, based on CCB real current organic aquisiton rate.
In order to double CCB by 2015 CBAI would need to under inventory about 720k stems.
Has CEO positioned CBAI this year to do this? I think so.
Whats seems to be the key for CBAI now? Growth (Aquisition without revenue)?, or Prosperity (Revenue thru organic growth- CCB has 47million in cash / 6 mill in debt)?
Some advocates of the 500/1 split like to advocated by saying if we dont agree to it we are going to miss the boat and loses out on a BIG aquisition to someone else dashing are hopes to excel in the industry.
I just demonstrated that with just what CBAI is involved with now and a small yearly organic growth by 2015 we will VERY conservatively be 1/2 of CCB, one of the strongest banking companies in the industry today and projected to remain so tommorrow.
Its interesting advocates of a 500/1 r/s use the analogy of missing the boat if we dont do it.
There are two stories in maritime history that come to mind when I hear that saying in the context of CBAI.
In 1912 the largest pasenger liner the world has ever seen set sail- The Titanic. A very oppulent ship. It was 882 ft long and could carry 3000 passengers. Chandeliers and fine china permeated the interior. Everyone wanted on the madien voyage, of the Greatest ship ever created.
Unfortunately its madien voyage was its last voyage. It struck an iceberg- made up of the same substance the Titanic just seconds before was gliding over gracefully with no worries at all. (its was floating on water). All of a sudden it struck waters fraternal twin sister- ICE.
Which is really just H20 slowed down. When it gets cold out H20 lots to huddle together. Sorta like people like to do. H20 molecules like each other more than people like each other so when H20 molecules huddle they tend to form strong bonds and stay that way until it warms up, then they go back to being water, frolicking around, making waves, having fun. water says, Sure it will get out of your boats way- glide on by its Summer, H20's not mad, it will get out of your way, its warm. It only refuses to budge when its cold.
Too bad the Titanic (well more for its passengers) didnt set sail in July instead of April, likley would have been smooth sailing!
Really the Titanic when you think about it was just floating on air. Its hull was 1 1/2 inches thick, smaller than a toothpick lengthwise. The material that it was made from when it got cold, became brittle (meaning its lost its flexibility,its ability to abosrb shock). Inside were just compartments of air, and above them were the facades of oppulence, the face of the ship. Showcasing power and granduer This granduer couldnt withstand the collapse of the fragile hull. The chandeliners now sit 2.5 miles of cold deep dark mad waters of the North Atlantic. Proving size alone doesnt gurantee a ships invincibility or longevity.
In 1812 a ship set sail in America. It was a different ship than the Titanic.This ship was built for a different purpose. It was built to win.
The US Constitution was 150 ft long and had a thick hard oak hull. It could hold 450 people. One event would change its course in history.
The War of 1812 is sometimes referred to as the 2nd Revolutinary War. About 36 years before the colonist kicked the British out of America and groomed their own society with new rules of society and business. Those 36 years proved pretty profitable for the colonist. The British knew, Ole' America was going to make it and they wanted one more crack at owning it. Near Boston Harbor one day in 1812.
The Consitution sailed out to me a English ship threating the "builders" of Boston, putting the crew in great risk. The Britsh pointed their Mighty ship cannons and fired upon the Constitution. An amazing thing happened. The cannon balls just bounced off its hull. The ships Oak hull, made from decades old old growth tree trunks, steadily growing thicker and stronger as the years went by, were so strong the modern British cannon balls were no match. From then on The mighty ship was referred to as "Old Iron Sides", and remains today in Boston Harbor, the oldest commissioned ship in the US NAVY fleet.
Its kind of interesting to think about the 500/1 reverse split 14mill and 86 million a/s 100 mill t/s in relation to the Titanic - Pre-CBAI r/s (A huge ship is built-growth). 500/1 r/s(most of the shipbuilders are laid off) 14 million o/s( ship workers are hired). 80mill a/s - brochure are sent out seeking wealthy passengers. ( dilution)- resources for the ship are purchased. Fine wine and gourmet food for the passengers, the passengers (new investors-ie dilution) start arriving. They start to dine and dance, and enjoy their cost of the ride. (profit off their investment) The workers do to at first just not at the same rate, some(if you have more than 10million shares) catch half a lobster tail here and there(have enough to play some swings and build on your core position. Most workers (current shareholders), got position/ salary/longer and longer hours(current shareholders investments become stagnant, the pps does not rise high enough/they dont have enough shares to make a signifigant gain for the risk they took. Risk taken due to CBAI promises to remember the shareholder, as the ship sails) to make as the guest needs(big block manipulation) get greater and greater, reducing their hourly rate ( workers lost value -Time is Time, $ for Time, thats something different) This is not though what was told to the workers(current investors) when they signed on with their labor, they were told by the ship company(CBAI) their safety(amount of dilution), and best interest (ownership percentage of the company) would be paramount, before they agreed to come aboard. ( To give CBAI - their $ (current investors fruits of their labor)=(current investors Time) =current investors original investment= current investors $) (Which is what its all about. ).The ship sets sail destination the New World (top of the industry). The Captain(CEO) gets confused in the darkness, but maintains 22 knots(continued very fast expansion) after being warned of Icebergs (lack of revenue) makes a misjudgment hits an iceberg (lack of revenue creditor wall). The thin hull (growth without revenue (prosperity)) cracks (bankruptcy). Water(liens flow in) To many passengers (100 mill shares) There's not enough lifeboats(preferred shares).To thirds go down with the ship, 900 survive. (CBAI assests are sold at 2/3 discount- the prefered shares get the payment after storage tanks and labs are sold to Frozen Food International for future endevors. ) Many of the surviviors go on to live prospers live, For sure, all the survivors at least got their money back. The rest (common share holders u/me) they lay 2.5 miles below the Iceberg (no revenue) on the bottom of the cold waters(end of 2nd dilution and no revenues to justify a 100 million share comany) of the the North Atlantic with the Grand Ballroom (ALL CBAI POTENTIAL) laying on top of them. $SUNK$ BYE BYE CBAI!
Do I think that will happen? - NO!-- But...the darkness (leverage for unknown future aquisitions)... does hold that risk.
Lets look at a 100/1 r/s and and 80mill recap 150 mill t/s to the US Constitution ("Old Ironsides")
- A strong ship is built(pre-r/s shares) Hewned from Old Growth Forest (Organic Growth- see CCB) Rather than untested thin steel (aquisition without revenue). Was built for force, not for splendor (revenue growth vs growth with cost) was built for a specific purpose( a true business organization starts to develop) Have you read DW web site yet? (I know u have, hint- IMO, and the other half- ?- also IMO, I wish we knew all who was trying to own us, ) "Old Ironsides meet his adversary in the chilly(slightly heavy pps at first) Boston Harbor(Market place) to meet his adversary ( the economy) and withstand his enemies barage (another economic meltdown) thanks to "Old Irons" sides thick old growth Oak hull ( cash in the treasury rather than shares to weather another economic downturn, which really pushed CBAI into the first dilution to begin with (They have tried to grow out of their own negative economic position, by obtain a loan from current investors, to buy up companies globally in a worse or simialr economic position as them, the change from this will be cmex- China according to CEO will be a net negative start ie- not profitable. If you think we arent going to have another signifigant economic downtrun. IMO think again- the fed is in the process of buying $600 mill in treasuries, IMO its says it all). With its superior oak hull (organic growth-see ccb) the US Constitution lives on today. Now considered an object of splendor, a natonal treasury, and still a commissioned navy ship-still maintaining its mission(CBAI- the most signifigant stem cell company in the industry- IMO this means prosperity(revenue growth, rather than mere growth). I dont have the figures, but I would imagine the decendents of the peolple of Boston who gave up there labor (time =$ = representation of labor = time) to hewn the strong oak trees(current investors $ ,dilution funds, which built CBAI to this point) to build the US Constitution "Old Iron Sides" have surley reaped just in tourism dollars( pps growth just from contracts) the labor(lost time n life) it cost(amount of time (labor=$=time) their ancesotors had to $ spend(labor they gave) to build it.
Which ship would you have rather been on?
During the cold was Mikayl Gorbechev asked Ronald Reagen when they were negotiating a reduction of Nuclear Weapons-- MG asked RR - Dont you trust us? RR answered, Its not that we dont trust you, we just want trust with verification. <-- not exact quotes.
After entrusting the representation ($) of your time in life to the gurantees articulated by CBAI, dont you think the current shareholder deserves some verification from CBAI (obtaining meaningful revenue growth, growing our cash reserves, before we agree to reduce our ownership share again. Voluntairy forgoing potential gain in time in life (profit), by voting yes for a split, and furthur dilution potential )?
Lets look at what CEO says about how the Market values banking companies. Based on stem invetories (see above CCB sec filing). CEO says that companies are valued based upon stems in invetory. He staes PK-- paid 2300/stem on their purchase. CEO suggesting this as the value ceiling for stems. He continues by stating he sees a value of CBAI stems as $1000. He qualifies this by stating even if they are only worth 1/2 this value $500. CBAI is picking up stems for about $300.00 thru aquisition. Using this logic to value CBAI after CCelmex @ $100 mill dollars.
To test CEO valuation, best to look at the industry today. Lets look again at CCB.
CCB really has just under 67million o/s its most recent pps was a $3.34 @ 52 week $6.50. Again for best accuracy probably best to use the analyst estimate $6.75 CCB projected invetory (stem) by end of 2011 about 187,000.
67mill shares x $6.75 = aprox $452 mill m/c.
$452 mill m/c / 187,000 inventory = approx $2,400 value per stem (in a vacum). CEO's valuation is correct!
After ccelmex aquisition CBAI will have between 1/2 and 2/3 the inventory of CCB. With just a growth rate cmex 8k stems a year. Just with that growth by 2015 we would have about the same number as CCB has today. Likely we would have a similar pps- analyst $6.75, 52 week $6.50, 52 week low $3.10, last close $3.34 - quite a profitable range in values wouldnt you think. As well as with alot of good bottom support, wouldn't you say? Refelection of a pretty healthy company wouldnt you say? Profitable and safe for the shareholders, wouldnt you say?
Its interesting that the aquisition of cmex according to CEO is going to bring us cash flow positive. None of the other aquisition nor the China operation, nor the Vegas operation individually or combined as allowed CBAI to become cash flow positive. Yet one aquisition Ccelmex - 180 degrees CBAI to cash flow positive. Why?
When we look at cmex business model, a model CEO highlighted as one of its main strengths, we see its based very similarly to CCB model. Estabilishing themselves in hospitals (organic growth, and in at least CCB case collecting both private (87%) and public (13 %) cords.) CCB has 47mill in cash and collects at a rate of 57,000 yr in a 1billion person market.
CCMex has ? cash but we know its has to be positive as we we are going to become instantly cash flow positive with their aquisition. It collects approx 8k stems a/yr in a 111 million market.
Looks like the organic growth business model generates alot of revenue, and grabs alot of invetory very quickly. CEO says he is going to apply this business model to some of the aquired companies. Sounds like he is going to begin to start focusing organically. Just like he said he was going to. Thats a good thing. seems like organic growth generates alot of annuity cash/ alot of invetory.
Two very good things.
What happens to those companies that CEO is not going to apply the organic growth business model to?
---------------------------------------------------------------
Enter MRL. -
Where is the revenue from Stellacure (51%), BIOCells (51%), and Vegas(100%)? They are all billed as one of the largest of their kind in their respected countries. Taking Vegas out of the picture, as CEO says its a different business model. (insurance based model). Dont you think if the hospital based organic growth business model that has been so successful for ccmex/ccb (to totally different economies) is applied to GRE/ARG combined populations 120mill - it will start adding to our revenue and inventory @ a likely approx inventory rate of 16k stems a/yr- about a third of CCB collection rate just with 3 of CBAI companies.
Since ccmex is the only part of the company to date that is generating positive cash flow. Then what kind of stems are in the other tanks? (wheres the annuity). And what have the other labs been busying themselves with? What have they been spending their $ on?
We know this for certain- Two of the companies we are involved in Ger/the spanish company have a relationship with the Red Cross basicaly a red blood cell company).
We know that in the same complex the China operations sits a very large manufacturing plant is being built capable of making tubes/pills, and other such things.
We know that prior to dillution Blue Cross owned 11% of CBAI. There is no indication they have sold their holdings of CBAI.
We know that atleast DWhealth and CBAI at least know who each other is, and likely have had at least 1 conversation.
We know that obtaining 1 of 6 lincenses in China gives exclusive access to at least 150 mill people.
We know CBAI currently has the storage capacity or ability to quickly build the capacity to process and store a large influx of stems.
We know there are approx 200 mill new births worldwide yearly-540k a day.
We know the vast majority of these births are in hospitals.
We know the vast majority of these cords/placentas are being thrown away.
We know being in hospitals is a very lucrative way to obtain inventory very quickly. (CCB/CCMEX).
We know at least in theory there is a way to turn a cord/placenta into o-neg blood very quickly,disease free, and indeterminent self life.
We know there is a relationship with DW and this technology.
We know CBAI at least knows DW.
We know CEO wants to quickly recapitalize for potential aquisitons and potential business uses, and to make it attractive to large investors.(immediate funding $).
Could it be the cord is going to someone else(lack of annuity revenue) and we are taking the placenta(5% of our revenue within 8 months) for MRl blood pharming theory? As maybe we are the ones that have the ability to process the placenta, a more delicate -stringent process (see licensing-FDA)?
Could it be the goal is to fund organic growth by growing or hospital presence?
Our current grow rate just with aquistion projections of 1 arm (ccmex) of our company, we are projected in 2015 what CCB is today ( approx 140k stems).
With 100/1 - 70mill o/s shares (same as CCB) and same pps $3.34 - CBAI would have a m/c of $233mill, and 80 a/s leverage of $267 million.
With 500/1 - 14mill o/s (about ccel) and $3.34pps same as CCB -
CBAI would have a m/c of approx $46 million and leverage of $267million.
Obviously if in 2015 CBAI is what CCB today with 14mill o/s CBAI pps will be much higher than CCB is today, as we have proven earlier that CEO is correct in how the Market values the stems.
I would think with about 1/4 of the shares and 140k stems, it would seem CBAI would sell at least 4 times CCB pps today - about $13/share x 14 mill= $182 mill m/c and 80mill x $13 = $1billion leverage.
Which way to the same end game (ENDventory). Is best for the current shareholder and CBAI? What seems more in balance?
The Million shareholder- 500/1 = 2000 shares x $13 = $26,000
The Million shareholder- 100/1= 10000 shares x $3.34 = $33,400
Thats with equaling (in number of invetory) in 2015 what CCB is today.
Correct me if I wrong, I dont think you believe by 2015 CBAI is merley going to be what CCB was 4 years earlier, do you? I know I dont.
Just what did last years dilution funds,(your/my $) = Representing our time in life pay for?
-Ownership of 4 processing a storage labs in 4 countries and 3 continents (includes ccmex)
- A 15% stake in a Chinese company
-A hospital education program for nurses in hospitals (organic growth foundation)
-Elimination of toxic debt. (but not the debt to u/me)
- Partnerships in China, Spain, Bermuda, Hawaii
- distress assests of a bankrupt Chicago stem company
- 100k x $1000 dollar stems in inventory. ( more than half of CCB 2011 projection)
- Placenta processing ability/ 2 processing contracts (5% of our revenue)
- Partnership in a DNA testing kit.
- $ So CEO to travel the world to develop key relationships and partenrships. (access to 2 billion poeople worldwide- about 134 million potential invetory(cord/placentas) each year, every year, year after year,after year, after year...
- an approx $350k year well deserved combined salary for CEO/wife.
Just applying an organic growth business model to CBAI current assests and comparing their potential to CCB - CBAI organic growth potential doubles CCB's. CCB with hospital based organic private stem banking(85% of revenue) with current inventory growth rates will have 360,000 stems in inventory - or a company value based on on $1000 a stem = $360,000,000 Market value for CCB.
As we see CEO has set CBAI up in a position to double this by 2015 - 720,000 stems in invetory x $1000 stem = $720,000,000 Market value of CBAI - JUST IN a hospital based ORGANIC GROWTH!
So far CEO until the mex pruchase CEO invetory purchases has generated very little revenue. The mex purchase generates revenue. CCB has 47mill in cash, collects approx 57k new invetory a year. IT seems pretty clear if CEO wants wants inventory + revenue which business model works.
If any of MRL connections prove to be correct and the largest part of CBAI revenue generation is going to be other than private organic growth. The CEO himself said if he thought he was going to be a private cord banker for the next 10 years he would be looking for an exit strategy. Just with organic growth we have a very strong potential to be a $720,00,000 valued company by 2015.
@ 100/1 r/s - 70mill o/s @ $24 pps (double CCB projected $12 in 2015) $1.6 bill m/c and 80 mill auth = $2 billion leverage
If the all the shares are released by 2015 ( seemingly they are going to be used for already profitable aquisitions- CEO stated) would be 150mill @ $24 share = m/c 3.6 bill with 720k in organic inventory - Out of line?
As opposed to CCB projected 80 mill x $12 = $960 mill. with 360 inventory?
500/1 - with 100 mill x 24 = m/c- 2.4 bill with 720k inventory.
CCB has generated $47 mill in cash of annuities from 140k private stems.
Using this - with half CCB invetory 70k stems - CBAI should have approx $23 mill in cash shortly. (when revenue from mex come in).
If CBAI is the same inventory as CCB in 2015 should generate about $90 mill on 360k stems.
If CBAI is double CCB in2015 -just with what we have today we likely are on track-CBAI should have about $180mill in cash. Or at least generated as much. Just in the organic private growth part of CBAI.
It seems pretty evident that something other than private stem banking is brewing, if we take what CEO says about an exit strategy as valid.
If this is much bigger than private stem banking, but still involves stems and placentas. Why the need to split and recap at such an imbalance.?
100/1 split leave same o/s shares as CCB- 70 million. The CEO is hinting that he has something in the works to garner revenue to outpace that of organic private stem banking.
@ 70 mill o/s CCB m/c is about $210 mill , projected to be m/c $840 mill in 2015. 86% of this stength ORGANIC PRIVATE STEM growth, potentially generating $ 90 mill in cash.
CEO says he has something bigger planned. Where do think for the security, strength, and value increase do you think is a safer bet for the current sharholder to ask the CEO to get these funds?
Thru a 500/1 r/s and a 86% potential recap - to purchase invetory? Which as of yet hasnt proven to generate much revenue.
Or thru a 100/1 r/s and 70 o/s and about 50%-80 a/s in leverage. Getting the leverage difference in cash thru organic growth which ccmex and CCB have already proven is a winning revenue and invetory model. So much so CEO is going to apply it to other parts of the company.
CEO says he is picking stems up thru aquisition @ about $ 300/each. If he is getting them so cheap, why does he need so much leverage? When we already know he can get all he wants for free in where he already is or shortly will be in the hospitals.
There are 542k stems availble ever day at the worlds hospitals. Mostly being thrown away. Plus another 542k placentas. One million a day in the hospitals mostly being thrown away!
He has all the invetory he wants at his front door. The aquisitions he is after must not be for the annutiy cash - As we can already see where the annutiy cash is - In the hospitals.
If the revenue he has are larger than the cash generated from private annuities, then why the need for such and large transfer of shares from o/s (from the current investor) back to the treasury(a/s- 86%) ?
It seems pretty clear - CBAI very shortly is going to be generating a whole lot of organic growth cash. Coupled with the Larger , non private bank revenue.
Its difficult to see where CBAI would need so much leverage with the revenue about to be generated.
It difficult to see where CBAI wouldnt have all the revenue and sustainble pps growth (increasing leverage) @ a 100/1 split 70mill o/s and 80 mill a/s = 150mill @ 24/share (double CCB $12/share- m/c 840mill in 2015 = $ 3.6billion m/c when all the shares are used.
500/1 14mill o/s and 80 o/s = 100 mill @ 24/share = $ 2.4bill when all the shares are used.
If you think $3.6 bill cap is too high, How large a 2nd split would there need to be to bring the cap to $2.4 bill. I wouldnt think very high. By then there would seem to be plenty of cash on hand for a buyback. If not then that means it was likely used in lew of a/s- so the o/s share number would likely be much lower. putting even more positive pressure on the pps.
1mill share current shareholder - 500 split- 2k shares x 24 = $48,000
1 mill share current shareholder-100 split-10k shares x 24= $ 240,000
Whats the difference?
-80% of of the current shareholders potential profit -transfered to large block investors (a CEO stated reason for the recap- to attract larger investors), so as CBAI can continue to pursue aquisitions to pursue inventory at $300 a sample.
IMO (you can rest assured he talking about the transportation and processing cost of the placenta.
When he is talking about $2300 he is taking about the private cord annuity.
When he talks about the $1000 he is talking about what he can sell the processed placenta for - sorta starts fitting in with MRL blood pharming concept IMO.
Everything I just wrote above boils down to one concept?
I totally agree with you, as well as every long here, there is no doubt IMO that CBAI is going to be a wildly successful company! I think I can honestly say I think it will be bigger than you think it will be.
CEO wants most of the current shareholders IOU's back to generate cash and leverage. About the same amount of cash and leverage - just if his 4 labs (not China) generate the same inventory as CCB will this year (57k), it gives an industry value of $57 mill for those cords. If he sells the palcenta for a his low value of 500 less 300 cost= $200.00 = $11.4 mill. If he gets $1000 -300 cost $700.00 = $39 mill- he already has 2 placenta processing contracts.
He is set up to have all the cash he needs right now, in just with what he has now. This cash will do wonders for him with the leverage he is provided with a 100/1 split 70mil o/s and the 80 mill a/s leverage he wants. Any lack of leverage he has with 70mill o/s holding back the pps /m/c will be very easily and readily made up with the cash= CBAI is about to generate from private organic annuity contracts.
The concept you tied up your $ -(representing your time in life from past labor) for atleast a couple with your investment in CBAI, when most others wouldnt. With the hope the time you lost in life from the past labor - represented by your investment $ in CBAI. That CBAI success one day would allow you to recoup more than the past labor, you invested in CBAI represented by $.
Allowing you to aquiring more representations of past labor($) than you invested, so as to free up what evertime you have left in life free of undesired labor.
Congratulations!!! The future is now! Its here! You have just about won. Your investment has just about paid off.
http://www.youtube.com/watch?v=3GwjfUFyY6M
There is just one little (BIG!) thing left, before you celebrate YOU HAVE TO PROTECT IT FROM ENTITES WHO WANT TO DO WHAT YOU HAVE BEEN WAITING FOR ALL THIS TIME. Profit tremendously from a GREAT company.
How are they going to try and do it? By literally transferring 80% of your claims (IOU's-Shares) for this extra TIME in life to them, thru a 500/1 R/S.
Why let someone literally take your future extra TIME in life?
Isnt CBAI whole mission to provide people with extra Time in life?
You just gave your hard earned money to a company that focuses on providing life saving materials to people to try and prevent their death(end of individuals conscious TIME)?
Now that company is on the doorstep of success, Why shouldnt you enjoy some of that extra time in life? After all, without your past labor and generosity to invest (u could have invested in Ford Motor Company- but you took the higher risk in order to build a company focused on saving hearbeats, rather than gas mileage, so some might have a fighting chance. VERY HONORABLE INVESTMENT!
Dont you think you deserve 80% of the reward that comes with it rather than 20%? 500/1 v 100/1. That rewards is going to someones. CBAI's long journey is about to pay off. Who deserves this reward more than the current investor? The reward will remain the same , its the ownership of the reward which will change.
What valid reason has ever been given to you to justify taking 80% of your potential extra time in life and giving it to someone or something else?
THE SPLIT IS NOT ABOUT LEVERAGE OR ACQUIRING INVENTORY. I have just shown there are better ways to get this than thru a 500/1 r/s. THE 500/1 R/s and Recapitilization is about OWNERSHIP OF THE REWARD THAT IS ABOUT TO BE BESTOWED ON THE SHAREHOLDERS OF CBAI AFTER THE SHARE STRUCTURE CORRECTION.
Current investers(you and me) deserve more than what a 500/1 80mill recap proposal allows us to get.
It ours! We shouldnt be being told how much we are going to be allowed to keep! We should be telling how much we are willing to give back, when, and under what circumstances.
How much is EXTRA FREE TIME in your life worth fighting for? somebodys going to get it.
To the Victor goes the SPOILS?
Remember David was able to Slay Goliath.
If you have gotten to this point, thanks for reading : ) I hope at least it was entertaining. But more so I hope it helps change your mind.
DEFINATLEY AIMHO/GLTY/A
Using very raw numbers - but they are appropriate to illustrate the point.
It would seem safe to assume 1 of three things or more likely a combination of them will happened if the 500/1 r/s goes thru.
Either - the pps will go up, stay stagnant, or go down- or a combination of the three.
If the 500/1 r/s goes thru -- there will be 14mill-os/86mill a/s 5 mill preferred.
After the split, depending on what happens to CBAU revenue from now until then, the market will value CBAI as either under, over or at value. Ie- it will have either too many shares too few shares or the right amount for the revenues after the split.
If the market judeges CBAI as a 100 mill share company and there are 14 mill o/s this should put tremendous upward pressure on the pps. Not necessarily in a direct line but a steady upward pressure until the market determines the pps price has saturated (in a good way for us) a 100 million share company.
If a 1mill shareholder pre split- had 2k after split then he could expect a nice rise in pps prior to the saturation. At which time pps will stagnate until additional revenue raises the share value or will decline as profit is taken at its pps ceiling.
After a 500/1 split CBAI would basically mimic CCEl. They would have the same amount of shares and about the same number of cords stored. Ccel more or less sells between $1-2 dollars. If the 1 mill shareholder bought @ 1 cent (10k) he would be down temporarily -
as he is not keeping the value of his purchase price he is keeping the value of his split price. Today much lower than 1 cent.
If the market valued CBAI more like China Cord Blood - approx 80 million shares and 200 k cords- pps approx $4.50. Then are 2k shareholder (former 1mill) would likely fairly quickly pull close to even on his original investment.
Unless any of the 80 million shares were released. Each time they were released, depending on the demand and reason for release would either forstall or quicken the road to CCB pps level.
CBAI seems somewhat better positioned than CCB in the future. We have a much healthier global position. Thank You CEO! CCB pps is projected to be $12 in 2015 when the industry is projected to be $15 bilion dollars.
If cbai potential is realize by 2015 they should be somewhat bigger than CCB- say than can support a $15pps.
Based on CBAI and industry projections - Think CBAI could support a $15 x 14mill = $ 210 mill market cap- Highly likely
$15 x 100 mill o/s = $ 1.5 billion market cap ?
$15 x 150 mill o/s = 2.25 billion market cap ?
So after a 500/1 r/s and no further issued shares, if CBAI pps rises 33% greater than CCB projected $12 pps in 2015.
The former 1mill share 2k investor, invested @ 1 cent makes $30k, $20k in profit - $ 5k/year- 50% year for 4 years.
Is this the kind of profit you invested for?
Do the current revenue projections justify either a 1.5 or 2.2 billion market cap by 2015? No.
So any additional shares over the 14million after 500/1 r/s should likely ultimately hamper the pps potential until revenue outpaces market demand for the stock. (in raw terms)
Revenue drives the pps, stem demand drives revenue, # shares realtive to revenue drives determines pps- determines your profit. (in a vacum)
If there is a 100/1 r/s split- 70mill o/s and 80mill a/s. after the split, if market determines CBAI is vlaued at a 100mill share company pps would refelect accordingly and again rise for until 100 mill saturation from 70 mill. A duller spike than 500/1.
If it kept the same market cap as a 14 mill share co. acting like a 100 mill company. We could expect the pps to rise to approx $3 dollars (210mill market cap) the 100 r/s mill shareholder ends up with 10k shares @ apporx $3 pps or $30k same as the 14 mill shareholder at 33% higher than CCB projected 2015 pps.
If mrl suggest we are moving into a new stem era in blood pharming and the pps reaches $ 100.
The 500/1 r/s million share holder(2k) turns into $200 thousand
The 100/1 r/s million shareholder (10k) turns into $ 1 million
Whats the difference?
If you believe the investors that support a 500/1 r/s ( and those that dont) the future of CBAI is EXTREMELY BRIGHT!!!!!!!!!!!!!!!!
The only difference between $200k & $ 1 million for the current 1 million shareholder is :
a NO vote on the 500/1 r/s and TIME!
The pps will take care of itself in time, you just want to have enough shares to make the wait worth your time.
Somebody is going to make that $800k - It might as well be You/Me.
In less your just completley in left field, its pretty obvious CBAI is going to make it. And likely make it very BIG.
I CANNOT STRESS ENOUGH - FORGET ABOUT EVERYTHING ELSE. THIS IS NOW ABOUT OWNERSHIP OF WHAT IS GOING TO BE A VERY BIG COMPANY. THE CEO SHOULD BE SHOWERED WITH PRAISE FOR GETTING US TO THIS POINT.
THIS IS ABOUT MAINTAINING THE FRUITS OF YOUR RISK. ITS OK TO BE GREEDY! SOMEBODY(s) ARE TRYING TO TAKE IT ALL.
CBAI is not doing a r/s split because they are broke. Just the opposite. They are poised to do so well there are some hungry investors (with lots of $) that want in.
They should be let in on your terms not theirs. You own the company they want a piece of. Even the advocates of the 500/1 supported under the guise of how explosive CBAI is going to be, without further aquisition. Meaning what we have now is going to support this explosive growth.
Eliminate what your feelings for or perceptions of motives you have for the CEO. That just muddles the picture. Forget about the fight with ccel. We will own CCElMex.
Think strickly about the future of CBAI and the stem industry. Think about where we are today (dont look at revenue)(until its time to reduce 150mil to 100 mill shares).
4 continents 4 labs. A Myriad of relationships. Globally positioned to be an intrical part in a coming(2015) great leap forward in medicine. Government knows it, Insurance knows it, Universities know it, Richard Branson knows it.
If you cant see what stems are going to be within this decade - your Mr. MaGoo.
If you cant see that 500/1 split will likely cost you 800k for every million you now hold, then let Mr Magoo drive because he can see better then U!
Your Exactly right again.
After the split U will own the same % of the company. Wants he dilutes the 80mill, U wont! Ur Screwed if this proposal goes thru!
Dont let it happen to yourself. Someone(s) are trying to grab ownership. YOUR ownership. Dont let them grab such a big hunk.
If the current investor demands to keep 70million share(100/1) and gives him the 80 mill shares he wants. Gives 150mill shares
a little top heavy. Those extra 50 million shares are the current investors insurance against losing profit potential.
From the time he splits to 70 million to the time he dilutes the 80 mill. there will be some very profitable fluctuations. You will have manitained enough shares to profit from these fluctuations and keep a lucrative core position, and plow the profit right back to buy some of the 80mill shares. ALL GOOD FOR CBAI! AND Good For You!
Once the 150 million shares are out there and the Big Blocks have theirs and their preferred, and the managements has their options.
The 150 can be brought down very easily to 100 million. I would imagine the CEO could even set it up where the majority of the second split only effects effects only the 80 million diluted shares - leaving 30 million or 30% of a 100 mill company.
Your going to take a penalty (r/s) for supporting the CEO early on. The way it set up now. Those that are going to support him after the split, their investment is basically a sure bet.
Why penalize yourself for supporting CEO when others wouldnt?
Your security is the 50 mill extra shares. If 150 million shares is to heavy for CBAI to support in the future. Then a smaller second r/s or buyback can eliminate the 50 mill heavy shares. The way the revenue is projected. CBAI could easily support a 150mill share structure.
But say it cant. Then any s/s correction in the future will involve ALL the 150 mill investors.
You will have then gone thru 2 r/s and the investors after the 80mill dilution will go thru 1. A MUCH smaller one. ALL investors then will have given something back - the current investor more so, so that CBAI can flourish as a 100 million share company.
When does the reduction of the 50 million shares occurr? When CEO can show thru revenue that CBAI is on solid footing. By then you would have had plenty of opporotunities to get THE LOYAL SHAREHOLDER REWARD that the CEO has said you deserve. at that time the 2nd dilution investors will be in a position to see their investment obtain maximum value. Just like the looooooonnnggggg wait you have been enduring.
Why shouldnt you be rewarded before they are?
Nothing against CEO- I think overall he has done a great job. I'm not willing to put my investment fate in one man's hands. I bought into a public company not a private one.
It doesnt take a genius to figure out under which scenario current investors investment has the chance for the best returns
This proposal - will only effect(negativly) the current investors - WHO SUPPORTED CEO WHEN NO ONE ELSE WOULD.
IT DOESNT MAKE SENSE FOR U! IT IS IMPORTANT FOR ALL CURRENT INVESTORS RIGHT NOW TO SAY TO CEO IT DOESNT MAKE SENSE AND I'M NOT SUPPORTING A 500/1 R/S AND A 80 MILLION SHARE RECAP.
It doesnt matter how GREAT CBAI becomes in the future if your not allowed to keep your ownership today.
It really is Nonsense to put CEO on such a flawless pedestal. we as investors have a duty to CBAI to let the CEO know when we believe his thinking is flawed. In his 500/1 r/s scenario- his thinking is flawed.
I dont pretened I know how to run a stem cell comapany. But I do know how to invest in one. I don't like it when someone P's down my back and tries to tell me its raining.
AIMHO/GLTY
I can see where your coming from, dont think thats whats happening though.
to me see CEO as trying to weave CBAI vertically through the industry in key areas to reap much money off services supplied at the various points in the vertical.
They may involve processing, storage, transportation, contract maintenance, search fee etc...
Its impossible to put a blanket value on stems as their value depends on their individual purpose, function, and quality.
I quality private stems are probably more valuable than a research stem. When CEO talks about valuation of the stem IMO he frames it in a way as to the value the market places on them. When he explains it he talks about it in a range value way.
IMO he is saying what he is aquiring is the value of the stem, as the stem market values it, rather than necessarily the stem itself.
He is purchasing the Value of X rather than X itself.
IMO
Either ur scenario or mine either way their both very lucrative. So I dont care if I'm wrong as long as your right.
Definately we both agree we would be fools to give up our position @ 500/1 with this company about to take off. We have definately earned our positions, hopefully others will see that also and not sell and vote NO.
Another reason he may have announced so early is it may gurantee a positive vote, as anyone who sells now disagrees with the split anyone who buys now agrees with the split. By mid April, most holders of shares likely will agree with the 500/1 r/s.
The only ones who wont will be disagreeing longs who held. That wont be enough to stop it.
He already knows he will have the vote.
AIMHO GLTY
IMO he is loosing up the shares/ under this cover he is also going to release the remainder of the shares. Might as well get some money from them before they disappear.
I would think shortly or right now someone is buying a bunch of shares. When it splits they may already own a great deal of the 14mill o/s shares and likely will be lined up to obtain much of the preferred and 80mill shares to come- for a price of course.
IDK for certain but would be a reason to make the pps look bad now.
IMO CCElmex will do exactly what he has said - make us cash flow positive- A very good thing. IDK what Vivicells will do but I'm confident it will be positive. Its all good news, thats why the 500/1 is a BAD deal for u/me-- there is no reason for us to give up this much of what is going to be a wildly successful company.
IMO when he talks about valuation he is talking about the value of the stems as it relates to the stem value. Meaning the stem will have X value depending upon it stated purpose, demand and its quality.
IMO CEO is less interested in the ownership of the stem, more in what the value the stem represents, and the fees associated with processing, storage, and transportation.
I eluded to this in a previous post
If you think why it is called Stem Cell BANKING. IMO you will begin to see what he is really after.
Usually the tallest or most oppulent building in a city is a Bank building. Where does the bank get the $ to build or buy such building. Not because they are sitting on a big pile of $. Most banks dont have any much money in the vault. Most are leveraged 15, 30 to 1. So where do they get the money to build the buildings?
Thru fees associated with the transactions of Money. The type/size of the transcation, the more desperate the borower is for the transaction, sets the banks fee for the transaction. the banks a money broker, not a money supplier. The money comes from the fed or thru leverage from the borrowers loan contract, and the movement of money from one owner to another. remebering a banks actual money to loan comes from deposits and the FED(leverage). Very little of it is actually the banks money. the fees associated with these transactions in themselves are realtively small, collectively they are tremendous. Its where they get the money to buid the tall buildings.
Each stored stem in whatever form its derived is a singular tangible. Just like a single dollar bill. This tangible is going to transfer ownership X amount of times throughout its existence. It could be once (private store that is used by the storer). Or it may transfer more than once ( a private store that is sold by its owner to someone else for use) Or a myriad of combination in private, public, blood pharming (as u artfully laid out).
Rather than own the cords, IMO CEO wants the fees for however many X transaction in the life of an individual stem. From the fee for initial processing, to the fee for handiling and disposing of the discarded stem bag after the transplant, And as many fees he can in between.
The CEO is trying to become the Gatekeeper of the industry-the toll booth operater on the busiest stem road if you will.
The transaction fees associated with the future of this industry will be mindboggiling. It will be definately enough to build as high a building as any Money bank building in any city.
He wants to be The BANK of the stem cell BANKING industry and all the fees associated with same. He could care less to own 1 single stem.
AIMHO GLTY
2nd seperate agreement
So are U going to fold? Or are U going to call his bluff and ask to see his hand?
are U going to fold um or Hold um? In case your not aware your sitting at the poker table with a Straight Flush. CEO has a Royal Flush (.5 billion shares)
Someone new wants to sit down and start playing. They want you to fold and reschuffle, and they want to up the ante to get in the game, and they want to deal and call the next game.
The only person at the table right now with a better hand than U is the CEO. He is working in your best interest RIGHT? so if he wins U win.
Why would U fold your second best hand at the table, let a stranger sit down, pay more to get in, give the stranger the deal and accept the risk - that either U will be dealt bad cards or the pot will become bigger than you can afford?
I doesnt make sense for u to fold when ur already sitting on a Straight Flush, in an already VERY Lucrative table. (4 labs on 4 continents).
As Kenny Rogers sings- Know when to Hold Em. Now is a time to Hold em.
Thanks -- for posting the Q/A it
reinforces my previous post -- #52436
Thanks!
GLTY/A
Exactly -- doesnt ccelmex avg 8k stems a year?
You just answered the question beautfully.
Why let current investors IOU's be gutted and reissued to others?
Granted some current investors will buy more of the new 80 mill shares but rest assured most will got to big block investors, aquistions, finaciers, and management. No current investor aside from management and IBC will see a preferred share.
IMO- what he is trying to do is flip the ownership structure upside down. With obviously he ending up on or near the top both ways.- As he should as we want him on top, thats GOOD for CBAI.
Right now U/Me the individual investor owns the company. Meaning their are no instiitutional investors owning more than 5%, with the exception of bc which owned 11% predilutioon, diluted down to under 5%. Top 5 managament own and have options for approx 1 billion shares- about 15%. Aside from about 600,000,000 left in the treasury that likely are being released now or will be shortly. More or less the other approx 70% of the IOU's are outstanding (owned by u/me).
This is going to be flipped upside down to your/my detriement.
After a 500/1 split the current investors collectively will own aporx 14% of an ultimate 100 mill share company. The other 86% will in great part be owned by big block invesotrs, and management. With all of the preferred being owned by them.
Guranteed this proposal stems from negotiations with one or more of those big block investors. Guranteed they asked for as much as CEO would give, and CEO negotiated to maintain as much control as he could. Now he is bringing the negotiation to me/u, and every other investor.
And the deal is for you to give up the vast majority of your ownership of the company to a bigger investor so as to continue undetermined aquisitons, in the hopes of generating revenue.
You have just shown how a small to moderate organic growth of 5-10k stems will generate an unbelieveable amount of revenue. Your numbers look correct. Doesnt CCelmex avg sales about 8k stems a year?
See the big picture? There is someone trying to steal your company from you. Right now you/me and other individual investors own the majority of the company. Everbody knows this company is going to be HUGE. You-me-the board-CEO-BC-DW-Ccelmex-ccel-CCB-CBR-State of Nevada-AHIP-MM's-Duke Univerity-HCA-etc...
Somebody is going to come in big. Why just hand it to them? You own right now what others want because everyone can see its future- It's a NO BRAINER! ITS GOING TO BE HUGE!
You were smart and took the risk others couldnt/wouldnt you saw the opprotunity before others. NOW those others want in when its getting safer. Not only do that want in, they want most of it, and they dont want alot of others around them. Why just give it to them? THIS IS BUSINESS!
Obviously with 7billion shares were going to have to give up some ownership - but most of it? Why? As your numbers show we are on the precipice of major Organic Growth revenue. We can have a very strong company very shortly without one more Aquisition, just as you show with small organic growth.
A 100/1 split with a reauthorization of 80mill shares. leaves 70mill shares to me/u and 80 mill to others = a 150 million share company.
Me/u maintain approx 45% ownership of CBAI2 gives him everything he wants with a 33% larger share count 50 million shares, that can be corrected very easily in the future.
Think of thos extra 50 miilion shares as the current investors negotiating tool. Someone wants a 100mill share count and control of now what he knows is a good thing. He will have taken a much lower risk with his $.
You/me have taken a much higher risk and need a higher reward for it.
If this entity truley has something to offer to enhance your ownership value, and it would be worth giving up some of your ownership to make room for what they bring, what is wrong (this is business) when someone is trying to steal your ownership ie wealth of CBAI, for you to say no and negotiate for a better deal?
Especially at a time, as you show in your numbers, you are in the driver seat.
According to your numbers we are about to become very profitable on the size CBAI is right now. Even if we didnt buy anything else he has all the tools he needs to make us profitable very soon. CEO should have no problem paying the bills in the very near future. He says himself after ccel mex we are cash flow positive.
The ccelmex deal cant be contigent on the split as the deal is scheduled to close the end of February. The VOTE to split is not until Mid APRIL. Ccelmex will be closed by then. The $ is already there for that aquisition. That $ wont know what the r/s vote was prior to cmex closing.
You/me have NO incentive to give up majority ownership of CBAI at a time when its on the verge of exploding. NO INCENTIVE WHATS SO EVER! IT WOULD BE INSANE ON OUR PART!!
THIS IS ABOUT WHO IS GOING TO OWN CBAI2-GENERATING THE NUMBERS YOU JUST WROTE.
YOU OWN CBAI1-YOU WILL OWN A LARGE PORTION OF CBAI2 - AS LONG AS YOU DONT VOULINTARY GIVE IT AWAY!!!!!!!!!!!!! - FOR NOTHING!!!!!
Like the Indians did when the pilgrims bought Manhantan for beads. Dont let Wall Street buy CBAI from you for BEADS!!
Its time to WAKE UP people -PLEASE! See it for what it is.
Current investors collectively are the third party in the negotiation. Some in our party IBC/CEO/Management want the deal as they will retain a lucrative ownership stake.
The majority of the group the individual investor @ a 500/1 r/s and 80 mill share recap will not be so lucky.
Its up to me/u/and the other individual investors to negotiate for a better deal.
If we cant get it, then voting NO and keeping it just the way it is, with the revenue you just outlined and no more dilution your investment will do just fine bouncing back a forth between a penny and nickel.
Once a good deal for US comes around then we will be happy to give up a SLIGHT portion of our ownership so that our investment can bounce around where ever we want it to bounce around.
If we say NO to this deal, how long, with the numbers you just proved do you think that GOOD deal is going to take to come around?
AIMHO GLTY/A ----
Why the need to rush to uplist?
I agree at some point we need to uplist. What prevents 150mill S/S from uplisting?
If something does. What is unhealthy for a growing comapany that just diulted 7billion shares to pay for this growth. Growth that was going to produce revenues. As CEO original proposal was he was only going to look for healthy profitable aquisitions (that didnt happen) --
What is unhealthy about a strong 70million share bb company. Growing the company with an additional 80mill shares. Creating strong REVENUE growth (prosperity). Which no long here would never say revenue isnt just around the corner, Would they?
so if strong revenue is just around the corner for CBAI, why the need for immediate recapitilization?
Even if there is a legit need for immediate recapitilization, why cant this capitilization come and still maximize current investor value? With the remainder either being bought out or eliminated(r/s 2) sometime in the future? When CBAI is strong from revenue growth(just around the corner right?) If CBAI is going to be all it proporates its going to be, it surley could withstand a larger and smaller r/s split a few years apart. easily.
CBAI could very easily sustain a few more years on the BB if the revenue comes like we were told was coming.
If stems are what they report to be. Concentrating on revenue will take care of the rest. CEO now has 4 labs on 4 continents. Lets start seeing the fruits of this. Ie contracts, organic growth, discarded stems, annuities- where the revenue? After that and after he spends the 80mill he wants. A 150mill share CBAI will be VERY Revenue Strong/and a little weighted down with 150mill shares. Perfect time for a buyback or a small r/s and an uplisting. 2015 when many clinical trials come out an industry projected to be 15bill sounds like a perfect time.
Until then current investors can make handsome profits as CBAI starts dominating the BB with its incredible revenue growth. Right?
When this occurrs if big money can choose to come in or not. If CBAI is what it says its going to be, if they dont then they will have missed the boat, but current investors will have theirs.
I remember advocating to you that a r/s would be healthy. I still believe so. You told me I convinced you that a r/s is not bad.
I ask you now to seriously consider if a 500/1 R/S is in the best interest of the current shareholder. There are better ways for him to recapitalize, without building a pillow for big money.
If revenue is a great as its proposed then big money can take the BB chance like the rest of us. If they wont then revenue growth should give him all the $ he needs until 2015 with a 100/1 r/s and 80mill new shares that he can do with what ever he wants.
A r/s isnt bad- a 500/1 r/s and a recapitiliazation of 80mill shares, with no revenue to justify it. trust me thats bad for u/me.
AIMHO GLTY
Agree DW isnt the Money.
IDK who the money is. If you spend anytime on DW website, you realize very quickly DW tightens the finacials of a company up and finds a buyer. They more or less say this directly on their website.
IMO this proposal is mostly a ownership battle for CBAI2. IMO it is critical at this juncture for the non management common shareholder to advocate to maximizes their ownership stake in CBAI2.
I could see where DW is behind the call for the 500/1 split, if the plan is for them to come into CBAI. Is also very clear on their website they prefer control ownership in the companies they partner with.
AIMHO GLTY
You are 100% correct.
The proposal for a 98% reduction in sharholder claims and a reloading to dilute 85million shares in a 100 million share company is totally Ridiculous.
One of the main reasons the pps has been nonpreforming this year is HE HAS BEEN SELLING SHARES INTO NEWS!! (diluting).
Now, instead of letting the results of dilution settle and allowing the pps to move naturally, allowing it to grow as REVENUE grows. After diluting the 7 billion he wants to eliminate the shares and start the process all over again.
This smells like pump and dump and borders on a violation of his fiduciary duty to shareholders. His duty is to maximize share holder value for current shareholders and act in their best interest, not the best interest of potential shareholders.
7 billion shares need to be corrected NO DOUBT - there is no reason to penalize current shareholders for this correction.
A r/s of 100/1 would leave 70million shares split up between current shareholders. The million shareholder keeps 10k shares as opposed to 2k with a 500/1 split. CEO has given no credible explination of why he needs to eliminate 8k of the 1mill shareholders IOU's.
If CEO after a 100/1 r/s wants a reauthorization of 80miilion shares for future endeavors, no problem.
I would have no problem witha CBAI2 with 70 million o/s and 80 million in the treasury giving a total of 150million shares.
150 million share structure would be on the higher end of the industry avg. This may have a minnimal negative effect on the pps getting to its max potential, but would definately allow for tremendous pps growth. Giving him all the additional shares he is requesting. With the LOYAL investors prior to the r/s keeping enough shares to make ALOT of profit over the next several years.
If after a few years CBAI is profitable and cash flow positive- if he wants to eiminate 50million shares, thru a split or a buyback. Go right ahead. He will then have the 100miill sahre company he wants.
The current 500/1 and re-auth of 85 mill shares is complete nonsense. Dont be fooled! He is trying to once and for all eliminate the original credit card debt and the accrueed interest, by paying the holders of that debt (u/me) NOTHING!
I encourage all to go back and review the post of those advocating how great this proposal is for the shareholder. See what they said when the r/s was being talked about.(just go back a week ago) You will see most scoffing at a the notion of a r/s and saying CEO would never REWARD the sharholders like this, they know because they know the company inside and out? apparently not. Then went on to propose outlandish buyback proposals. Any investor that is using this board to decide whether to vote yes or no on the split should first make sure the advice they are reading isnt comming from a Cameleon or a Lemming.
THIS PROPOSAL GOES TOO FAR AND IS NOT GOOD FOR THE CURRENT INVESTOR . BIG FAT PERIOD .
AIMHO GLTA
yesnoomaybeidnotknownotsurereversesplitbloodpharmingbuybacknasdaqamexdilutionrecaptilizationprivatebankingpublicbnaking
All sounds very confusing. What to do? Yes or NO ?
To try an answer that VERY important question seems relevant to think about the Y in the ? --
Y does CEO need a 500/1 Reverse Split? <--- not that Y.
Y does CEO need a recapitalization of the equvilant of 86 million shares of a 100 million share company, 5 million being preferred shares?
Say its postive inertia after a r/s and the pps sets at a buck 50 about ccel level- probably the closest comparsion after a split
So why does CEO need leverage of approx 129 mill?
How is he getting it?
He is getting it by eliminating 6,986,000,000 IOU's (value @ .004 = approx $27mill and replacing them with 14 million IOUs and 86 million potential IOUS, 5 million being prefered IOUs.
What happens to the $27 million-- POOF! Up In Smoke - It Disappears.!
This isnt Jim Jones flavored kool-Aide.
Its not a death sentence, more confusing than anything. Which will be a negative on the pps.
From the pr we know for sure-
He is diluting the rest of the shares. (which I believe is good)
He needs 80mill shares for something.
CCmex is not at a sure bet stage at this point.
There still isnt enough info to know if its good or bad. If this is all there is to it - then its is VERY BAD.
Its important to seperate speculation from information.
At this point - speculation is out the window. Information rules the day.
GLTY
You can also expand yourself to bankruptcy.
The definitions of Growth and Prosperity are vastly different.
Growth without prosperity is simply expanding ones needs without additional resources. The more simple term for this is poverty.
Its time for CBAI to concentrate on prosperity. There is no point in continuing to expand our poverty.
If he couldnt find prosperity thru diluting 7billion shares. Then he "ain't" going to find it by diluting more.
AIMHO GLTY
Agree, CEO is going to have to open the door to the dark room before long (meaning within by end of 1st q).
Investors wont stand for anymore ambiguity. IMO
GLTY
Its not.
He has alot more explaining to do if he needs shareholder votes. He wont get them without concretes. It ups the risk too much for shareholder.
Less risky for shareholder under this explination to say No and let it make a cent or 2 cent run an get out.
It almost seems like he is painting himself in a corner on purpose.
If he already has the votes he wont need to explain anything, and he wont.
AIMHO GLTY
Good post.
Do you agree he wil need to explain better why current shareholder should agree to give up 500/1 shares then allow for a furthur dilution of 80mill shares?
Seems there needs to be an explanation why the current shareholder doesnt keep the 430/1 shares?
100,000,000 is 70/1 7 bill split.
Do you think for general use purposes- ie aquisition, cash flow, performace bonuses, is enough to justify it?
Or would you rather him split it 70/1 consolidate expense and let it get devoured like ccel after one or two runs.
If what is happening -- after diluting 7bill shares is he has to wipe them out and dilute 80million more to stay alive or go on a spending spree, do you think were done?
If its not the above, what do you think the real plan is. Do You think CEO needs to be more open about CBAI relationship? Do you think he is being too vague. If so, Is this a detriment?
Curious on your thoughts- Thanks
GLTY
I agree i wish it would have run some more.
I think there will be some more good trading opprotunities coming up. I think it wil actually become more predictible. Still going to be an under the radar sector. even at 2 bucks still a bargain if the industry does what it is predicted to do.
Definately need more info on the r/s. Dont think wiping out nearly 7 billion and then adding back in 80 million, using the 80 million to search for more aquisitions is going to fly. We have already seen what that does to the pps. I would rather him split it 50/1 and finance the aquistion.
If that really what he has planned for the 80 mill shares (unk aquis/cash flow). I would rather keep max shares and difer the debt back to financing. At least it would temporarily spike the pps, long enough to get out with good profit.
Either way if he r/s 500/1 and adds back 80 for "unknown" future aquistions and cash flow. If this is the game plan at this stage -- WE ARE DONE!.
If he splits 50/1 and goes back into toxic financing -WE ARE DONE!.
If he needs shareholder support, he needs to explain his needs more clearly. Possibilities and potentials wont do it for this request or IMO he will never get it.
If he doesnt need it, it wont matter what the shareholder thinks about it.
GLTY AIMHO
Hickory Dickory Dock,
The horse jumped over the clock,
The clock struck eight 8,
He ate some cake,
Hickory Dickory Dock!
BAD day for CBAI investor? Maybe? seems like we have just been handed the poison pill. Justifying those advancing this result. A desperate CEO - imploying a desperate measure to stay afloat.
But that doesnt make since. He tried to buy a larger company twice and is about to buy a larger company than his. Hes not desperate, so why put the squeeze on sharholders?
Maybe what he is really doing is like an Aztec Pyrmid.
To bring the structure down to 14million(including the trasury shares which IMO likely wil be diluted, maybe already be happening)
There would be no reason to bring the share structure to this level, in fact would be counter productive and would stymie trading of the stock rather than increasing. Wouldnt be enough shares to trade around.
What if however the end game is shortly after or in conjuction with, or even prior using the treasury share (but likely not).
CEO backfils the shares thru aquisitions or a major merger. Bringing the shares back to around the industry norm for what the size of CBAI2 will be 100 mill shares. Which looks like may be the plane according to the pr- setting the s/s request at 100mill. I think CCB has 80mill shares.
There are 3 things CEO has said that are important to todays news.
-- not quotes--
1. when dilution is over and the true pps begins to emerge he will look to correct the share structure.
We are looking at the true pps (almost)- I have said in a previous post this is going to be an UGLY looking number we have 1.5bill shares to go - 20%- think .0034. This is an UGLY number.
2. He is going to look for ways to reward his loyal shareholders.
Is a 500/1 r/s a reward - Obviously not. However if he absorbs lucrative assest (aquisitions) with each aquisitions adding a greater and greater value to the base (ie a higher pps) with the top being IMO a merger with a strong company currently or about to trade on the nasdaq.
Again imagine a step pyramid.
3. He is going to choose the the s/s correction which affects the broadest amount of sharholders and is least expensive.
Did anyone really believe he was going to buyback 98% of the shares @ a cost of approx 35 million dollars? If he would have he might as well showed up at his frozen food business because he surley would have bankrupted CBAI.
If Mrl info on blood pharming is acurate- seems to be strong suggestion it has merit less the default theory <--(JMO) I could see his prediction of 100pps in a year or 3.
Priceline sells for $356.00 - with a potential 6 billion market. Disease/treatments is a guranteed 6 billion market. CBAI sells for .004
One might be necessary so you can make the flight on your next vacation. One you would likely book a flight even if you didnt have it.
2000 shares of Priceline - $712,000. Price of 1,000,000 cbai shares - $4,000. after 500/1 r/s 2000 shares - pps?
If stems indeed become the next cataylat for a new medical frontier, then it seems the wait would be those who waited for priceline 5 years ago. IMO 5 years is CBAI timeframe for priceline type levels if stems become what they seem they will.
How long are you willing to wait will determine your fate.
The risk has gone up today.
I dont imagine this is the whole story. Its just the beginning. Couldnt see voting for it unless there is and we know about it before the split.
I do think CEO will need to be MUCH clearer on the road map after this split and why a large split is necessary. Definately seems alot more to come.
Were about to get a whole new trading pattern.- thats a whole different time zone.
Hickory Dickory Dock,
The horse jumped over the clock,
The clock struck eight 8,
He ate some cake,
Hickory Dickory Dock!
AIMHO GLTA
Me - without futhur information as to the necessity.
A shout out to CBAIWaiting/Pitt- Congratulations you called it. I sincerely believe your not gloating about being right.
Nobody should be fooled, with the known information this is a BAD day for CBAI investors. Maybe?
Prefecing the above with this post.
post #45294
GLTA-
It may affect your math
if you look at it as more what is left on the storage annuity from the aquired companies. The longest annuity would necesarily be the newest contract closest to the date of aquisition. The other contracts would obviously be closer to the annuity maturation date. Meaning their is never a set evaluation on the annuity contract as as every year after contract signing it losses assest value.
The annuity would either have accounting wise be marked as a one time assest depreciated over time, or as positive revenue on the date of the next annuity due payment for the individual contract.
The annuity either has to be valued at the time of aquisition at full value and depreciated over time. Or valued as revenue during the yearly date of the annuity payment.
This may account for the decrepency of the missing $ #, you elude to.
When CEO mentions the valuation of the cords on hand @ 1k he prefecesis 1k CBAI cord evaluation with example of PElmer valuation of their banking purchase paying $2300 per stem stored contract, without valuing the stems themselves. As they were valuing the annuity rather than the stem. Demonstrating the value is in the annuity contract rather than the material itself. The $1k evaluation in the context CEO provided that information may have been an average annuity left on the stored stems.
AIMHO GLTY
Something very radical has been proposed by MRL.
Two things really?
1. CBAI is going to morph into a Blood Pharming company> where CEO is going to get the seed money to dominate this industry by sellling for millions a stash of raw material for blood expanision.
Sorta like Walt Disney got the $ to build Disneyland from proceeds from the Disney Davie Crockett show(as well as 20 miilion sold) Dave Crockett hats in a year (1954). Walt must of had a large store of Coon Skins.
With one entire cord equating to 20 pints of blood @ a cost of $1000 pint= $20,000 a cord.
In this process the entire cord is used.
Naturally any cord purchased thru aquisition would have already been processed. Meaning there would be about 3 ounces of raw material left as the rest would have been discarded during processing. This raw material CBAI would have from aquisitions is the3 ounces of white blood cells. Unless the aquired companies for some reason kept the unused raw materials9the red blood cells) and stored them, then CBAI thru aquisition would have eaccess to the entire cord. Their value being a partial component of the entire raw material needed. It would necessarilly be valued as such.
Whats That value?
2. The pps will be $100.00 by end of 2011 with a massive buyback.
a 4.5 bill buyback @ .005 would cost $22 million. Leaving apporx 1Billion O/s shares and 1.5 A/S non outstanding. Total shares remaining after massive buyback 1.5 billion shares. If A/S shares retired 1Billion shares remaining.
Cost of massive buyback @.005 level leaving 1billion shares $22 million.
Any buyback other than a Negative Tender Offer may be very difficult to fulfill @ an approx 20% gain at current pps.
The CEO is about to buy 70k processed cord stems/lab/ for approx $17mill.
The cost of the diluted debt is
credit card debt + refinancing(private financing)+ refinacing(toxic debt)+refinacing (public offering) + refinacing (toxic debt) + (refinancing) dilution + refinacing <------> $ flow positive + time = increase pps = end of credit card debt = share holder reward. ------- Time frame -- ?-- Reward level-- ?
Realistic? Probable? Reasonable? Economical? Logical? Below is a link that at least will give you an idea as to the biggest ?
PRACTICAL?
http://www.pbs.org/wnet/redgold/experts/qa2.html
AIMHO GLTA
mofnc is correct.
MRl- is calling for a $100/pps by end of this year.
He lays out how in the post below.
He has laid out his - connections for CBAI move into a blood pharming business and private cord storage as a smaller part of the company. His connection is very strong.
This is complete opposite from CEO interview comments earlier last year, that private cord storage will always be the main focus of CBAI. (not exact quote)
During a more recent interview CEO stated if he thought he would just be storing private cords for the next 10 years, he would be looking for an exit strategy.(not exact quote)
CEO started a frozen food business recently.
There are 94 million blood transfusions worldwide - every year.
This blood - is apparently guranteed disease free.
There there are upwards of 200million births each year. everyone guranteed to be approx 200 million umbilical cords/placenta available each year.
Kohls Department store a medium discount department store in USA pps is approx $42.00.
The world's largest company Exxon has a market cap of approx 400 billion.
Drinks Americas- distributes Willie Nelson's Whiskey pps of approx .04
CBAI has 5.6bill outstanding shares.
A $100/pps with no R/S- gives a $560,000,000,000 Market cap to CBAI more than 10x's the size of the worlds largest company(an oil company?
Has MRL just described CBAI2?- Is CEO about to chart a whole new course?
MRL prediction of $100.00 pps by years end is real- he spells it out very clearly.
Do you agree with him?
If he is right on the first part, why shouldnt he be right on the 2nd part(the 100/pps)? He definately does his DD.
If you don't think he is right, what do you think will happen?
Are we about to become a blood pharming company? If so, What's that worth?
IS CBAI more like a Red Tag Sale, Red Texas Tea, or the Red-Headed Stranger?
Whats your thoughts? Thanks
Shout out to Mrl- thanks for the great Dd, definately not trying to bash you in this post, your pps predication relates to how big you believe the blood pharming wil be. Feel free to correct me if I am misunderstanding your pps prediction.
AIMHO GLTY
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MrLong Share Saturday, January 22, 2011 10:07:42 AM
Re: StLXer post# 50312 Post # of 50766
Very good post! I agree shareholders are debt - financiers of buildout. Does he water down the shareholder repayment or reward them with interest. I don't think many would be pleased to be diluted and then R/S too.
I haven't clarified how $100pps is reached in 2011. I will do so now. Let me know your thoughts after I put all the pieces on the table for view.
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Sounds Good -- Lets Get This Party Started!
Good Job! Very well organized.
Thanks!
Good Info- Thanks!
Do you think that means the cost v revenue is going to be higher with needles rather than cost v revenue for pills?
Or will there be more needles than pills?
Are 30 days worth of pills going to be replaced by a trip to the Dr. once a month for a shot in the A**?
What happens to Walgreens pharmacy?
GLTY
I sure hope your right!
What drives the market? The aging boomers? Or the needs of a global market?
Do you think all the CBAI companies will move to this or just Vegas CBAI?
Do you think the transportation box, you posted about previous has anything to add to the revenue?
When does it start? How do you think the announcement plays out?
If what you say plays, it would be the "Knock Me Down With a Feather Moment"
I thought that was the failed CCEL buy, but maybe its the blood expansion your laying out
as Booger would say Tick Tock...
Time will tell.
Do you think CEO times running out to get it done, or is its just hammering out the minor details of a done deal?
GLTY
No Problem, happy to share.
This is the moment your faith in the integrity of our CEO comes into play.
Will he release the rest of the shares, drive down the share price, and announce a negative tender offer at a nominal price above that 7bill depressed pps.
I dont think he will, or I would have already sold.
The good insurance against a negative tender offer, there are so many o/s shares and how many would have to be purchased even at a .003 offer, it is more or less impractical.
GLTY AIMHO
YEAH OK.