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Negative Tender Offer.
Shareholder has no choice.
GLTY
Right On! Thanks.
Glad to be funding a great company with you and many 1st Class others. We are all in for some good times when its all said and done.
Fingers Crossed!
GLTY/A
I'm trying to get a handle around what you are saying.
Do you think they found the money, which allowed them to pull back the shares? Changing their previous capitalization course.
Are you stating the buyback started then?
We know they have the money for MEX as they tried to use it to buy CCEL twice in 2nd half 2010.
When that plan didnt work out it obviously had to alter CBAI timeline. CEO eludes to this in some of his comments.
We are about to buy something less costly than what we were prepared(funded) to buy.
Are the CCEL lenders unused funds going to go to fix the S/S?
to enable a dumbed down version of CBAI/CCEL --- CBAI/CCEL-mex to be competitive at the next stem storage level?
Or will they be used to continue to devour CCEL with the same s/s and a gradual buyback announcement?
Its a real shout out to the board - when our "boiler plate" analysis doesnt go unnoticed by the CEO.
I am glad their are some on the board that have more than boiler plate analysis and are willing to share it with the board!
Thanks!
GLTY AIMHO
Interesting.
Im not sure if I read it the same way. Hopefully your right and a gradual buyback at market prices is the way he goes.
We know he already has the $ - So does CCEL.
Thanks for your thoughts.-- We will know VERY Shortly.
AIMHO GLTY.
What do you think this means?
Can a gradual buyback and these conditions be meet at the same time?
From the letter of Intent:
-One such material condition is the requirement that Cord Blood immediately raise privately, additional capital estimated by management to approximate $14 Million, in order to fund the cash payments required to close the transaction. There is no assurance that Cord Blood will be successful in raising such additional capital, or raising it in a timely fashion or under commercially reasonable terms.
-A second material condition is that Cord Blood immediately amend its Articles of Incorporation so as to create sufficient authorized but unissued shares sufficient to provide the ability to issue new shares for the new capital required by it to complete the transaction.
http://xml.10kwizard.com/filing_raw.php?repo=tenk&ipage=7282171
Thanks for your thoughts
GLTY
I would agree and think a gradual buyback over time is the #1 prefered option.
Do you think the Mex LOI language allows for that?
What do you think the LOI langiuage is mandating? And at what time frame?
Thanks for your thoughts.
GLTY
I started posting about the R/S when naysays started using a R/S as the ultimately death of CBAI, trying to imply CBAI was a pump/dump.
I agree with the naysays there may be no better alternative to maintain the stength of CBAI than a R/S. I hope it doesnt have to happen, I dont advocate for it.
I have tried to demonstrate in my post, if CEO chooses a a pure R/S, IMO there is NO WAY its going beyond 100/1 and believe if he does it will be around half that.
Basically I tried to make those concerned about a R/S in CBAI's case, NOT to be concerned Even if it R/S your going to make ALOT of $!
Investing in OTC stocks- RISKY! Being invested in an OTC company that even if a R/S occurs is positive - PRICELESS!
AIMHO GLTY
I cant speak for MRL. I think me and MRl basically agree on some main points.
1. CBAI is here
2. CBAI is real
3. CBAI wants to strategically position itself as a gateway company in the stem (not just cord stems) industry.
4. CBAI is going to fundemendtly change within 40 days. which is most definately going to change CBAI in a positive way for the shareholders.
5. MRL /Locks definately supply the board with the most industry/CBAi connections.
6. We dont disagree IF CBAI will succeed. We exchange ideas regarding the time frame and the pathway to what we both know is going to be the end result--
A VERY HAPPY CBAI SHAREHOLDER-Whose faith(money) in the CEO just brought CBAI to the precipice of success in its to ability reward those shareholders for their faith($), as well in its ability to potential positively affect (and sometimes save) the lives of potentially every human on the face of the earth.
I dont know a better plac for my hard earned $.
I realize alot of my post are very long. I try to cut them down. I have a very strong urge to set a framework for my conclusions, and make them entertaining where I can.
I guess my post or either exhausting or informative depending on how much someone likes to read. :)
Thanks for reading them!-
CBAI is quality from top to bottom- even down to the quality of its shareholders, especially the ones on this board. One cant ask for an investment better than that.
The beauty of it we are invested at the ground floor heading toward the elevator in a very tall building. You cant ask for better than that.
AIMHO GLTY/A
I see the sharer istting in the registered foriegn company.
Is that what you are talking about
theres about 1 billion shares
---
Explain if you would -- how do you think China Stem comapany is going to fix CBAI 7billion share problem?
Thanks
I know, I dont see a buyback in the 3 ways I laid out.
which are the 3 basic buyback options, that a buyback would be beneficial to CBAI or sharholder. The numbers dont make sense.
If anyone can help me see those numbers where it is prcatical, I for sure would love to find away to agree with them
AIMHO GLTY
Very ineresting. thank You for such a detailed response.
I see your connections. Agree sounds like thats the connection. I am on board with you, the next major announcement will be the solidification of this relationship.
The question is, do we become a privat stem storage business with a blood expansion division? Or do we become a blood expansion company, with a private stem storage division? In terms of revenue. How do you see it?
from your post, I understand that it takes the entire cord to multiply the blood. So a best of both worlds doesnt exist.( An extraction of stems and the waste to blood making.) a choice will have to be made at some point do we store for the individual or to we put it in the grinder? How do you think that plays out?
I agree the ownership/control setup is a BIG ? It will make the difference in our investment.
I see DW taking over the accounting and finance./ several board seats.
I sense CBAI is going to move into a "development" phase (developing a new management/accountiung structure) Which includes a leadership succession Ie there will be a change at the top 5. They hold 1billion shares- I'm sure this is a major part of the negotiation.
With this comes the S/S correction. What form it takes, Your right (waiting ?).
The split seems more logical than a buyback. I agree, whatever form the correction takes, will involve a reduction of shares.
Thanks for the response. Good times are coming before the Ides of March.
I'm on board with you on the blood machine connection.
In less than 40 days we will know more details. Hopefully its good news.
AIMHO GLTY
Excellent Post - brings alot a clarity to your well thought out pathway.
I want to jump on board with what your laying out. Before I do let me ask you to clarify a few things and get your thoughts on others.
I see the relationship between CBAI(lab/storage)-DWHP(money/orginization)-ARTERIOCYTE(hardware/technology).
Focused on the blood expansion technology. Is the product to utilize the white blood cells from the cord or the red? If its the red it wouldnt seem CBAI would need anything but organic growth to prosper as the red cells are a natural waste product of processing the stem. If this is the case hopefully CBAI has an exclusive contract. If they dont, and the red cells become in demand, surley many other banks will flood the market with the cells drying up demand.
If they use the white cells, so they need the actual stems? I dont see the large number of defaults you suggest. I could see a source from a large number of tainted stems, meaning some type of improper storage deemed them unusable for transplant. So they will turn them into o-neg hamburger.
Do you know which kind are used, or are both used?
Placentas probably have most of both wouldn't you think? Maybe thats the tissue bank we have been processing for. They been doing it since march 2010, govts been around. Do you think we may be coming up on any kind of one year trail date for certification to do this process?
If we are now in bed with these other two, what do you think the ownership structure ends up being? Dw says they like to own.
What do you think the setup between the 3 is? Think there is any other players involved. There some old viacells management around dw/Art. Do you think PerkElm has any involment?
Under your scenario sems an almost assembly line type environment would be needed. Seem the China facility is the only facility that could handle that volume. Do you think his recent China annoucement has anything to do with the blood machine?
How big of a market is it? Any idea what our cost v revenue would be? Whose our customer, Artcyte?
Do we get any new board members? Where they from? Do we get owned or do we own?
------------------------------------------------------------------
The $100.00pps with no r/s would be awesome! I think you see it in the form of a buyback.
How do you think a buyback would play out? Do you think it would be a buyback over time @ market price?
Wouldnt they have to announce that at some point?
Who would sell after they found out? Would you? I sure wouldnt, not if I jump on board with your 100pps after the buyback. I would be a fool. Unless the offer was 1/2 that then I would say, I'm rich enough, you can have them. And I will retire to my island or two.
How much do you think this kind of buyout would cost? Sounds very expensive. Ceo has said very expensive is something he is not going to do.
What if the buyback is a Tender Offer? How high would the Tender Offer have to be to induce you to give up the 100pps goal?
What if the Tender Offer was 2 cents for say 5 bill outstanding shares (still leaves over 250mill o/s and 1.5 bill in Treausury (20% of authed shares) Abraham,Abraham x 5 bill = $100,000,000mill dollars or $10,000,000,000 Abrahams Cost to CBAI. Is That reasonable?
Would you sell? Not if 100 pps is only 11 months away.
Again someone would be a fool? Wouldnt they? At what price do you think a voluntary tender offer would need to be to attract 5 billion at least shares to be sold? CEO is on record saying he will do what is least expensive.
What if the buyback is a Negative Tender Offer? What if that offer was for 1 Abraham- .01 x 5bill = $50,000,000, @ 100/1 buyback. The 1mill share holder would get paid 1 cent on 990,000 shares .01 x 990,000 = $9,900 and keep 10k shares. Good deal for the share holder? Cheap ($50mill) for CBAI?
100/1 @ 4 cents? .04 x 990,000 shares = $39,600 + 10,000shares x .04 = $400.00
Total 1mill shareholder worth after 4cent Negative Tender Offer of 100/1 $40,000. Profit if 1 mill bought by shareholder at .003 ($300.00)-- $37,000.
Cost to CBAI of a 4 cent 5billion share buyback--$200,000,000. Leaving 500 million o/s and 1.5 bill a/s = 2 billion total share count after 5 billion buyback at a $200 mill cost and a $37,000 dollar profit for the 1mill shareholder.
Is that a good deal? For CBAI or shareholder?
-
--
A 100/1 r/s 7 bill share split.
Cost to CBAI- Nominal.
Profit to the CBAI shareholder 1mill/100= 10k @ 4 Abrahams = $400.00.
Think pps will be 4 cents after r/s?
Likely not. Likly would be in the $1 dollar range at least based on company value 100k cords @ $1k = $100,000,000 million valuation. With a total of 70,000 total shares in all forms.
$1pps x 10k shares= $10k - cost to shareholder @ 2 cents (near 52 week high) for 1mill shares = $20,000- loss of 10k on a $1pps. How quickly do you think that would change?
which of the 3 buyback scenarios are you suggesting?
It has to be one of the 3 if its a pure buyback. If its not a true buyback, what do you think it will be other than a r/s? What would those cost to CBAI and profit to the 1mill share holder be?
In my examples I just took 5 bill off the market. A buyback at these cost levels would still leave 2 billion shares, with 1/2 bill outstanding. what would this do to the pps?
How much would it cost in a buyback to take 6.93bill off the market? leaving the same 70mill total that a 100/1 split would leave? At what pps level does it become affordedable for CBAi to do?
What effects the broadest number of shareholders, and is the least expensive.
The Market Cap $70mill after a 100/1 split would be 70 mill o/s if pps was $1.00 3 times todays pps.
Market Cap after a 200 million 4cent 5billion share Negative Tender offer Buyout of 100/1 leaving 500 million o/s and 1.5 bill a/s, if valued at $1 = $500 million M/C. Possible? Good for CBAI and shareholder?
Which option do you think creates the stronger CBAI and stronger shareholder value (realized and potential)
A buyback or a R/S? Or something else? Would like to hear your take.
With a prefice-- I dont advocate a R/S - would love to keep all of my shares. Just trying to see how it can happen. Having trouble seeing it.
Any help you or anyone can give me to help me understand a viable option that gets the 100pps you want- with 7billion shares. I'm all ears. Would love to learn.
Again Great post~
AIMHO GLTY/A
I agree and believe he knows that.
I thought at first he was going that route. Not anymore I think he has the money. IMO what he is giving up for it is some ownership, and control in the finacial area.
I keep stressing same thing, but I think its vital to understand. Even in the worst case correction scenario a pure R/S. The numbers acounting to correct 7billion shares do not bring that correction greater than 100/1 and thats on the extreme end of the industry.
He could release all 7bill / max R/S it. There will still be plenty of Great Profit for even a minor investment.
I agree if he goes back into toxic financing- SELL
AIMHO/GLTY
I think the shares ARE the debt.
He doesnt really have $30million in actual debt.
The debt is in the obligation to the diluted share holders. basically to pay of approx $20 million in toxic debt. He paid it off with about $30mill (really about $40mill) in transfered debt to shareholder value. Ie -dilution. ie reduceing the pressure of the debt obligation by spreading it out amongst many rather than few.
It didnt all go to pay the debt, after the debt was satisfied he used it on the buying spree/other things and to keep the lights on.
How he chooses to finally eliminate the debt will make the difference in our investment.
AIMHO/GLTY
Cheers
I need to clarify my post to you, based on your response I think I read it wrong.
I quoted you because I took your statment to mean you dont believe CBAI2 (post correction CBAI) could reach the gains potential of CBAI1(pre correction).
Unless we have a investment bubble in stems in the next 40 or so days. The potential for enourmous gains for CBAI1 are over. Unless the CEO can transition CBAI thru the for sure coming correction with the o/s remaining the same. If he, can go buy a very large yacht slip. I will buy the one next to you.
If its corrected by a split whether or not you become a millionaire depends on how many shares you had before the split.
the 10mill shareholder @ .005 cent cost (50k) at 100/1 r/s ends up with 100k shares or a real cost of the 10mill shares of 50cents/share.
Now there is-- say 150mill o/s and shareholder has 100k of them. With a pps of what?
I agree with you. (with deference that I hope Mrl is completely right and I am completly wrong). I dont see a $100 pps in 2011 for CBAI even at 150mill shares. MAYBE at some point in the road after 2015, until then I think we hope for $12 after an unlisting and a couple of years, will corelate with the growth of the industry $15bill by 2015. NICE GROWTH.
After the events of 2010 for CBAI we should expect the same right? After all CBAI really is real, as I'm sure you dont need to be told.
Todays 10mill shareholder with $50k then ends up with $1.2mill if it plays out that way. So yeah definately can get gains post correction even with a split and modest pps growth over a couple of years to make the pre split investor a millionaire. CBAI is set up for at least moderate growth over the next 5 years.
All depends on how much your willing to gamble today. Are most people on this board gambling with $50k? Some for sure are, most likely not.
If you gamble a little.
1mill shares, cost 5k @.005 - 100/1 split 10k @ cost $2.00 share.
There is a bulk discount. If you were wondering when to get in.
does 1mill share holder become millionaire after correction? Naw not until the $100pps you decide for yourself if that will happen and when.
If its $12 in 2015 10k x $12 = $120.00. Is he a millionaire @ a 5k investment, he'll think he is.
The coorelation between cgc /cbai is an example that went to otc to nasdaq in conjuction to a r/s split that is doing very well after same. In an industry obviously doing well.
In many ways the stem industry is a commodity business, dependent upon demand for a tangible (physical storage space or the stem itself). If after 2015 even just one trial proves stems a successful primary treatment for one moderate impact human condition.
we would both reap the benefits of discovering Red Texas Tea!
I agree with you 100%.
Thank you articulating this so well. I have been trying to demonstrate this in several of my more recent posts. Your post spells it out very clearly. I started trying to demonstrate it when the naysays began howling that R/S will be the last ditch effort of a failing CEO/CBAI. As you have so well shown, there is nothing further from the truth.
I agree completley. There is nothing to fear about a R/s in THIS case. We know its limits and we can demonstrate its likely effects on the pps.
If it ends up .50 after r/s I think it rises fairly quickly, fairly steeply.
I dont think any of us want a R/S if it can be avoided. Obviously, we would like to all keep all of our shares. The reality of it is we likely wont.
a very rudementary- more or less accurate CBAI funding timeline:
CEO/Wife --> CBAI <-- credit cards <----private funding <------ investors <---------- toxic debt <--------------more investor(s) $ (dilution) <----------------- ? -- Whats next?
Cash flow? Thats what we've been waiting for.
Great no more need to take on bad debt.
CBAI debt currently is about $30million, owed in various degrees to every shareholder for a share bought before the next share was diluted, until dilution is over.
The original credit card debt that started the company has never really been paid by CBAI without going into further debt. Its actual elimination has been deferred for seven years while the CEO brought the company to cash flow positive. Each deferment paid the demands of the last obligation at a price of course, the increase of the obligation of the original credits debt, culiminating where we are today. the debt defered thru depressed shareholder value..ie- diluted shares.
What is the CEO's obligation to the diluted shareholders who now hold the original credit card debt that started the company?
The only answer to that question that matters is the CEO's action(s). Depending on what he does will tell his answer. We are going to know very shortly.
He does have a fiduciary duty to the shareholder. I agree to spend $34 mill to buyback shares to 150mill total seems not the best use of resources unless he has found away to raise the $34mill without going into further debt or losing control of ownership, and eliminate the original debt once and for all.
He doesnt have $34mill in profit to pay off the debt. So he is going to have to get the funds from a new obligation defering once again the original credit card debt. IMO he is done defering this debt. IMO the only other way to finally clear it off the books whithout more debt or less control is the dreaded #/%.
We agree the dreaded R/S in CBAI's situation is not so dreadful.
Thanks for laying it out so well.
AIMHO GLTY
Cheers
Start Reading Mrl post start with the blood machine, and work your way back. By the time your finished reading it will have R/S -
quote-
--but the gains won't be as huge is my point after the RS.---------------------------------------------------------------
Thats nonsense you have said nothing to back that statment up. Prove that statment and I will believe you.
Have you ever heard of Texas Tea? This kind is red.
GLTY
IMO your missing it.
You should have read thru it. Big diference than looking.
Your trying to merge two differnt entities.
CBAI1 pre s/s correction.
CBAI2 post s/s correction.
They are two seperate and distinct entities. One is the other but neither are the same. Its the closest to the trinity your going to get. Trust me CBAI2 is going to be much more lucrative than CBAI1.
They profit to be made on CBAI1 is just about over.
CBAI2 trading pattern will be much different as well as its pps. Its going to be more influenced by the market rather than market makers.
There may be a profit opprotunity time period between cbai1 and cbai2. Especially if he aztec pyramids the correction rather than Egpytian pyramids it.
Look at the forest rather than the tree.
check out cgld now(CGC) capital gold corporation if you want to see a penny that r/s uplisted and whose pre r/s investors are very happy right now. Thank You CGld.
AIMHO GLTY
Because whats holding it down IS the share count!
If you havent read the stuff Locks pointed you to, get to reading. Nobody is going to spoon feed it to you.
Dont gamble if you dont know what your gambiling on. With this stock, wants you know the gamble you will realize its not much of a gamble.
AIMHO GLTY
You wont hear me complain if massive means 100/1 or less.
I'll smile. The sooner the better.
If you mean it will be higher that 100/1 then I would ask you to prove it. If you cant, then safe to say what you say wouldnt say what you say.
AIMHO GLTY
It board shorthand for
All In My Humble Opinion
Good Luck To You/All
I use it because i'm not to pompus to think my reasoning is without flaw, and wish the best to who I respond to and the other board members. No matter if our analysis coincides or not.
Cheers means its good to talk to you.
AIMHO GLTY/A Cheers : )
I like your scenario, but think the tresuries shares have to be part of the correction, cant correct 5.5 bill and leave 1.5bill there.
would leave 70mill at 100/1 IMO he can double that share count a be just fine.
AIMHO GLTY
Sounds like a decent enough plan.
He could even sell the rest of the shares 1.5bill> Gets him about $6million push the pps down another 20% to .0034.
Put the $6million with the $3million he said he was preserving to maintain shareholder value, and buyback at avg cost .005. $9 million would take off the market 1.8bill, leaving 5.2bill a 35/1 R/S would leave 148mill shares. Right where he likely wants to be. With a pps I would seem around $2.00 dollars with 100k stems.
The 1 million shareholder - @ 5 k cost.- His 35/1 shares (28k) worth around $2.00 would be worth about $56k. If pps continues upward -no reason it shouldnt, if its $12.00 in 2015, Hes now worth $330,000. If it hits Mrl projected $100.00pps within a decade, hes worth $2.8 million. If mrl projection is off by 60% then $40.00 makes the 28k shareholder his Million dollar dream. Even if CBAI never comes close to double digit pps numbers. the million share holder is going to no doubt at least quadruple his $ at an even 100/1 split, when the correction occurs.
Pretty good for $5k Heh? Did that 1mill shareholder really think he was going to turn 5k into 2million when he bought those shares? In the above he just did. But he may not have seen the pathway if he was too concerned on losing zeros off his share count to realize a R/S may get him to his goal quicker than keeping his 1million share count dream.
Its not the zeros behind his share count that matter, its the zeros behind his $1,0??,???...that count.
Do I think it will happen that way, parts I do and parts likely not. One thing i would bet, any split wont go over 100/1 and todays 1million shareholder will be happy when its does. Once he sees its is quickest way for him to $1,000,000.
AIMHO GLTY
I dont think there is a run coming, but there are lots of reasons to be in CBAI.
Depends what your goal is. Sounds like your wanting to flip. You would probably be better off looking for better opprotunities than CBAI if you wanting a quick flip. Too many x factors right now.
AIMHO GLTY
Agree only thing left at this point is to buy or hold. If he is selling the rest of the shares, may be a "short" short opprotunity. Personally, I wouldnt risk it wouldnt want to be caught "short". Our world changes within 45 days. I'm ready for it, how about you? Its time for this company to move to the next level. It has to or dies, sort of like **** or get off the ***.
IMO unless the lawsuit has merit nothing on CBAI side stops it. He definately wants the mex stems/lab. Its the most excited I witnesses him when he described what he thinks will be the companies valuation after the cords based on 1k a cord. He knows the contracts in the industry right now are what its all about.
I am posititve he already has the money, as seems Mex deal is a byproduct of failed ccel bids. With likely DW involved in the funding source.
I dont think we will directly see how the close of the deal will effect the pps, as its seems its already written the s/s correction comes before the close of the deal.
The tricky part for the CEO, as sponge pointed out in a post. Whose going to invest in a stock prior to the close of the deal? Likely not many.
If he corrects prior to the close, he risk a plummet of the new pps after the correction - if its a r/s and/or uplisting. If this is the scenario IMO the correction and the close will happen simultaneously, so the LOI date madate for the correction likely will be an important date.
If he doesnt r/s to correct if he buys back. He would have to be doing that right now, and would have to be doing it clandestinly.(not sure if thats even allowable) and would need about $25Mill to buy back enough- 97%-99% of the 7billion shares(understanding 1.5bill treas shares, that may be being sold now), to get the share count to between 70mill/150mill - the industry norm, even for much larger banking companies than CBAI even with CBAI Mex awesome aquisition.
Nothing in the performance of the pps suggest he has been engaged in buying shares. Recent activity could suggest he has been selling though.
If he announces a buyback, how long would it take to buyback the shares? Would he still get them for 25mill(.005pps)? Could he do it in the required timeframe of the LOI to correct the s/s? Who would sell their shares? Seems like holding would be the best stategy during a buyback, with this companies potential.
What if it is something other than a r/s _____ fill in the blank that still maintains 7billion individual interest in the assests of CBAI. With what the CEO moved toward this year and what he said the goals for 2011 are. What ever he does other than eliminating shares will still strapping the market cap with 7bill shares. Exxon Mobil(largest company in the world) $400 billion market cap. CBAI 7billion m/c? -$1 Green Back. $3.5bill M/C- 4 bits? $1.75bill m/c- 25 pennies?
There is no industry player, some double the size of CBAI that comes anywhere close to these Market Caps.
Remeber, this is not a NEW industry its a DEVELOPING industry. CBAI is trying to gain market share thru purchasing assests of companies unable to grow in a developing industry. With ultimately over time sustaining the business thru organic growth, and diversified product lines. After the MEx deal goes thru CBAI will be a moderate player in the private cord strorage sector of the industry, measured on assest valuation. Currently Private banking firms are dwarfed buy the economic power -(ie financial considerations and market penetration) of public banks(understanding for profit/not for profit)
Obviously I believe CBAI has a bright future. Its going to have to earn that future within a very well organized, funded, maturing iundustry. There is no gurantee of their success. Go back a look at some of the language of promise was exhaulted about ccel a few years ago. Now today it is in the process of imploding. We should not think this couldnt happened to CBAI.
China Cord Blood (CCB) has 75mill o/s -pps of $3.69 (close to a 52 wk pps low), and has double the amount of stems in strorage as CBAI will have after the MEX deal. CCB could buy us with 10% of their market cap. Exxon they could with...well- u do the math.
IMO its important to keep CBAI in perspective.
After the MEX deal and the s/s correction. CBAI will have position itself to do industry battle at the next level. In an industry in the midst of consolidation which will likely effect bigger players than ccel. But far from the strongest in the arena.
This is good for the investors as allows for alot of room for growth.
The CEO of Exxon -said when- (c-Charlie Rose) talking about alternative energy technologies and why weren't they more heavily involved. CEO stated for the forseeable future Oil will be the mainstay of the world, involved in all aspects of a functioning world. With out it the world as we know it would collapse. He asked the interviewer if there was any alternative energy source really feasible today, dont you think the largest energy company /largest company in the world would be dominating it?
If there really was a magic machine or therapy that was going to change stems into "red gold" dont you think the largest payers in the industry would already be dominating the technology? CBAI is not a company involved in inventing the wheel, its a company trying to gain a foothold in a quickly developing potentialy lucrative industry.
How would you rather see the CEO go into this much higher $take battle. Lean and mean with a cleaned up s/s or with a lingering 7billion pound weight slwoing him down?
Take the 1million share holder- if CEO R/S @ 100 /1 (70mill o/s) then 1 mill turns to 10k. If the 1mill was purchased @ .005 would have cost the investor $5k. Its realistic to look at it as every share the investor bought at these levels really cost him $2 dollars/share.
CCB projected pps 2015 - $12.00. Locations Asia. -stored cords approx 200k.
CBAI projected pps 2015 ?- Locations - North America, South America, Central America, Europe, Asia. Stored cords within 45 days approx 100k. Is $2/share a good deal?
The CEO said in one of his interviews regarding the s/s (not a quote). He knows the s/s is whats holding the company down. He could have corrected it prior, but management talked it over and decided what would be the point other than temporarly appease the pps if ther wasnt anything to justify it. With the potential to having to wreck the structure agian. Now that he will become cash flow positive, after the MEx deal. He would be able to justify the s/s correction to the investor. What type of s/s correction do you think he was talking about?
four questions to answer honestly about your CBAI investment.
What s/s correction do you dream will work?
What s/s correction do you think will work?
What s/s correction do you think is really best for CBAI?
What s/s correction do you really think CEO is going to take?
CEO went to Hong Kong, the financial center of asia. IMO right now its best to focus on the owenership/management structure changes about to happen. IMO what arises determines the fate of our investment.
AIMHO GLTY/A - CHEERS
And I dream he doesnt R/S.
basic decoding....
1. Dont be surprised if hes selling the rest of the shares
2. It will hurt some but wont kill your investment. Its better for us they get depleted.
3. Will give an opprotunity to grab hold tighter as the whole S/S (ownership structure) gets rearranged.
4. What side is it better to be on, Before or After the correction? Thats part of the debate.
AIMHO GLTY
I can understand investors frustration if they got in during the frenzy of the grand opening. Especially if it was planned as a short term hold, as since jan last year hasnt really had a good performance and the general market has out performed.
Anyone who held all year missed profits opprotunities elswhere. Thats frustrating. All be it there were a couple smaller profit opprotunities with CBAi this year.
At this point seems great news is just over the horizon. The fundementals of the company will be changing almost overnight. If this new direction is successul, we are all smiling, whether it splits our not.
If it doesnt we will lanquish and go the way of ccel, but IMO at a faster rate.
IMO we will know 4 1/4's after an uplisting who was right the nayasers, or the promoters.
AIMHO GLTY
For some of us it does.
__________________________________________________________________
StLXer Share Sunday, January 16, 2011 1:57:00 AM
Re: stem_buy stem_sell post# 49729 __________________________________________________________________
IMO Cincy post on the buy -sell chart should not go unnoticed If the new ownership structure is settled, then the treasuries shares may be being released. If so it will put obvious downward pressure on the pps. This is temporary as it will be adrressed in the impending s/s correction.
Barry post on the buyback scenario is interseting, but doesnt coincide with the CEO words. A buyback of $20mill @.0044(he would never be able to buy that many back at that average) would take 4.5bill off the market leaving 2.5billion- doesnt solve the issue. Would still need another move to bring- even if he retired the treasury shares would still need to bring 1billion shares to within industry norms. CEO has stated he is going to use the s/s measures(s) that effects the broadest range of shareholders(most will feel the pain), and is the least expensive.
I have considered the possibilty but doing the math and CEO recent statment I dont see it.
IMO he necessarly and likely the funding agreement is tied to it the depletion of the treasuries shares. As an investor seems that is preferable. NO point in a S/s corresction if approx 20% of the shares remain in the treasury. At this pps level will a 20% addition to o/s make a difference, likely negative, but at these levels becomes just another buying opprotunity to grab hold off a chunk of a company about to venture into a whole new territory.
The board gets excited on nuances of happenings with CEO travels, the lawsuit, the pr news, I enjoy it myself.
If you take time to think about why the industry is referred to as the- Stem Cell Banking Industry. You wont find the answer in this post, but you may get a hint.__________________________________________________________________
AIMHO GLTY
ccel is involved in pakistan
Dr Oneil once said in the stem radio interview they were contemplating working on a bag with more fragmentation. The current bag holds no more than 5 seperate chambers (and I think thats high) with approx 3 ounces of usable stems per cord.
The blood expansion path is interesting. It seem stores stems would have a potential higher use worth more then turning them into 20 pints of blood. Especially if they are instrumental in curing blood cancers, diabetes, etc.
Seems turning potential life saving stems into several blood units would be like turning gold coins into drain pipes. It works, but seems a less-valueable use for such valuable material.
It will be interesting to see the details of anything that develops from this.
AIMHO GLTY
I thought mrl said 20pints. but i may be wrong
The information alone carries a price. A very lucrative price.
There are 2 data bases- a known sample data base and a potential receipient data base, between them is a bridge. Whoever throws a tollbooth up on the best bridge will have very happy stockholders. The company would not have to own/or store 1 cord.
AIMHO-GLTY
No, developing and controlling the most extensive global match data base in the industry.
IMO, ultimately it is the most lucrative part of the industry.
CBAI better hurry!
I am trying to wrap my mind around what your saying, but I'm having trouble seeing the same thing you are seeing.
I like your info on the bood expanding sytem and cords. Agree that seem like it could have big possibilities.
I have a harder time seeing where we have any signifigant amount of stems to sell.
Just talking the Vegas facility. I havent seen any indication of much more than 20k stems in storage. Likely low to moderate growth last year, maybe there is 25k stored.
If you look at june 10 10q - those number would fit with the revenue from contracts. With 40k-70k factored in as likely unrecoverable assests, i.e. defaults.
It wouldn't seem in Vegas he is sitting on a high default number. I would think high max a couple hundred.
If he obtained them in conjunction with purchases of Ger,Arg,Mex, there has been no indication of this. It would go against the nature of the business.
Storage requires a payment upfront of around 2k basically anywhere in the globe. Affor-a-cord is a new program any default rate at this time from that would be nominal. After the initial 2k fee, there is a very easily afforded $100.00 a year annuity- less than 10/month. How much did that last Starbucks cost us?
The clientele we are selling too is basically higher income, unless we are preadtory selling to people we know cant afford $100.00/ year- that would be VERY BAD as we know they wont default on the 2k initial because they already paid us that. IMO you can apply that to any assest we have purchased. We havent purchased "Jilly's Bait/Tackle & Stem Storage Company" We have purchased 3 labs with solid business plans and reputations.
The CEO has said the reason most of these business are in trouble is they spent their money on marketing to attract clients in a crowded field. IMO CEO grabbed global capacity rather than defaulted stems. The same thing others are trying to do. IMO they assest he has purchased are contracts, labs, and tanks.
CEO himself in describing what Mex will do for the companies evaluation, referred to, as you also pointed out in a post, PKI valuation of their stem purchase @ $2300/cord. Ceo said being conserative he dropped his evaluation to 1k/cord. Giving a projected evaluation of CBAI after Mex purchased of 75-150mill.
Where did CEO /PKI get the number? From the cord contract, not the cord. 100yr x 20 = 2k. There is no allowance to the value of the cord in eithers evaluation nor in the june 10q because neither owns the cord. They belong top who holds the contract. PKI/CBAI were buying the contract - the cord necesarilly goes with it.
I hope the blood scenario you very interesting propose plays out very positive or CBAI. I see the potential you point out.
I just dont see where CBAI is going to supply the raw materials thru a stash of defaults. Private storers currently have already paid up front 2k (non-refundable). If they can do that $100/yr would be nothing to them. I dont see much default from that demographic. They are better educated than most on the value of storage. As we know most people still say no to private storage when presented with the choice.
Any individual storing who could not afford $100.00/year would only be storing due to predatory sales techniques, as that person would have already have paid 2k up front. If they couldnt afford 100 hundred/yr they couldn't afford 2k upfront. We would have known that during the sales pitch. If we signed them up anyway hoping they would default so we could obtian the cord- this would be predatory.
Predetory selling is BAD MORLISTICALLY, A BAD SALES APPROACH ,AND A BAD BUSINESS MODEL. If Affor-A-CORDs goal is to generate a lot of defaults to supply the blood regeneration. It should be shut down immediately.
I ABSOULUTELY DO NOT think CEO is engaged in this business plan.
If DW needed stems they wouldnt have to gather up defaults. They could go to a public bank and I imagine work a deal with how ever many they need.
I like your blood expansion connection alot, and hope it pans out. I just dont think defaults are the path to it.
AIMHO-GLTY
What your saying is interesting, I hope you are right.
Help me understand better to clarify one thing. Are you saying you see a $100.00 pps this year with maintaining 5.6billion o/s?
This would give a market Cap of $560 billion. The largest company in the world- Exxon - has a market cap around $400 billion.
Do you believe we can become the largest company in the world this year, out doing the next closest company by $160billion?
Or are you saying the $100.00 pps will be under a lower O/S count?
If you think O/S will be lowered how do you think he will get it there? What do you think that count will be?
Thanks- GLTY
Hickory Dickory Dock,
The duck quacked at the clock
The clock struck eleven 11,
The duck said 'oh heavens!'
Hickory Dickory Dock
Caution its Long
Seems we have reached the eleventh hour in several ways. The decisions made by CEO and the natural course of events over the next 60 days will definately chart the course for CBAI well into the next 5 years.
What an interesting time for the industry it will be. IMO it will be looked at as the "Era of Consolidation". Seems CEO is trying to position us in a key logistics position worldwide. It seems very clear that the stem business will be a global organism. Wang in China gets sick just like joe in Syracuse, and Akbar in Kuwait.
--If a worldwide data base can be created.- (think DNA testing kit) Then the ability to find worldwide matches becomes easier. What then prevents Chinese Wang to obtain Little Stevie from Austin stems from his baby teeth if they are a good match to help his nerve regeneration, in say his parkinsons disease? Nothing I would assume except for cost and regulations.
IMO CEO purchased the worldwide companies where he could rather than partner, to make it easier to create fluid transportation lanes between countries. Assisting in a more efficient and cost effective method of transfering stems across borders and distances. WIth an additional component of medical tourism. With hotel health type facilities around where the storage facilities are, to facilitats patients coming to the stems.
IMO look for CEO to consolidate CBAI and affiliates this year. He already said as much in one of the interviews. I think we will see a unified name and symbol -. Most importantly a streamlining resulting in cost saving efficiencies, and a streamlining of collection techniques and storage best practices. Culiminating in a more unified image, message, and operations.
IMO he starts trying to fill the tanks now. In staying very conservative- he has storage of 75k-lv,75-mex,25-arg,25k-germ, not counting China. He has global capacity of 200k stems. With Mex aquisition we will have approx 100k in storage. So CEO can basically double the companies asset value before having a storage issue. The predictibility of the stems business storage needs allows storage capacity needs to bedetermined well in adviance of their actual need, giving plenty of time to add to what really is a very simple storage system.
This will allow much easier access for Wang- to the stems he so badlly needs.
It also becomes much easier for the stems to find Wang. If Wang had stored his DNA information previous in a global data base, as matches are found he could be notified of their existence. As more matches come in they could be rank as far as compatability. Every stem entered into the data base could be matched against the knowns in the data base developing into spidering of compatibilty scales depending on with type stem is trying to be match to the individual. - Sorta of like several diferent data bases of Good,Better,Best.- Efficient healthcare at its best. DNA testing kit and the ability to match it against known stems is the key to the success of this industry-IMO. Who controls this database, will control a great deal.
What wakes up Joe from Syracuse more about the value of stems in his life. A pamplet in the mail purporting the virtues of stems storage? Or a letter in the mail letting Joe know there is a a near perfect match set of stems in storage in Germany that may cure any blood cancer he may develop? What if there was a good teeth pulp match in Argentina? Or two 80% cord matches in Vegas? What if Joe had the option to purchase any or all of the stems? IDK, it would seem that after about twenty years as stems were processed info placed in the data base, Joe could have 10's of different choices in varies degrees of capatability.
The teeth pulp news, while insignifigant at this time as far as revenue. Very signifigant as far as a change in direction for the company. Today CEO took down the sign on the loading dock that says "Deliver Cords here" and put up a sign that says "Deliver Stems here". Unlike placentas, being processed for a tissue bank. The teeth stem service he is selling is to the individual, broadening the potential sales base. Beginning the move into becoming a Stems business rather than a private cord blood bank. With the understanding cords are currently our core business. They will,until a more lucrative storage product may develop, continue to be the driving force of the company and will always be a very lucrative backbone of the company until a time when technological advancement would render storage needs obsolete or a sale of that business unit. IMO over time the cord blood business will be a business unit of a much larger CBAI2 <---insert new name -- focused on the transportation , processing, storage, and delivery of stems/stems products global.
IMO what is happening in the China operations is a build out to create a stems product manufacturing factory, with some form of CBAI being involved in at least the processing/ storage of the raw materials. The form these products will take is up to technology.
Over the next several years there is going to be an industry shakeout, fueled by $ coming from entities trying to position themselves to capitalize on the projected industry growth of $10 billion by 2015.
The Gamble- Stems will be proven ineffective over the entire spectrum. I'm personally wagered and I am confident billons of dollars more will be wagered by others that stems will be deemed effective-primary treatment in at least one major broad based global human ailment.
Within 60 days, baring something unforseen CEO will have positioned us to play ball in a more consolidated arena with bigger players. Hopefully with a solid strategic financial partner to enable CEO to make his vision reality. By all appearences DW is that partner.
IMO he is "laser focused" on aquiring ccel and believe he will succeed in in at least aquiring a good deal of their quality assests. IMo Ccel is one that will be absorbed in the "era of consolidation". IMO the lawsuit is merely a byproduct of this effort and basically insignifigant- withstanding any breech of contract which thus far hasnt surfaced.
IMO the real story is who is going to own CBAI2- that is going to be determine in the next 60 days. Our equity stake is dependent on the details of this agreement. With whoever it will be, rest assurd within 60 days it will be someone.
If it is DW Health Care Partners you can expect the below.
I am confident the CEO's attention/negotiations are on who is going to own(control) CBAI2 once the dust from the share structure correction has settled.
IMO Cincy post on the buy -sell chart should not go unnoticed. If the new ownership structure is settled, then the treasuries shares may be being released. If so it will put obvious downward pressure on the pps. This is temporary as it will be adrressed in the impending s/s correction.
Barry post on the buyback scenario is interseting, but doesnt coincide with the CEO words. A buyback of $20mill @.0044(he would never be able to buy that many back at that average) would take 4.5bill off the market leaving 2.5billion- doesnt solve the issue. Would still need another move to bring- even if he retired the treasury shares would still need to bring 1billion shares to within industry norms. CEO has stated he is going to use the s/s measures(s) that effects the broadest range of shareholders(most will feel the pain), and is the least expensive.
I have considered the possibilty but doing the math and CEO recent statment I dont see it.
IMO he necessarly and likely the funding agreement is tied to it the depletion of the treasuries shares. As an investor seems that is preferable. NO point in a S/s corresction if approx 20% of the shares remain in the treasury. At this pps level will a 20% addition to o/s make a difference, likely negative, but at these levels becomes just another buying opprotunity to grab hold off a chunk of a company about to venture into a whole new territory.
The board gets excited on nuances of happenings with CEO travels, the lawsuit, the pr news, I enjoy it myself.
If you take time to think about why the industry is referred to as the- Stem Cell Banking Industry. You wont find the answer in this post, but you may get a hint.
If you really understand what those words mean, IMO you will understand where the real $ is in the industry (in the future). You cant see it in the industry now because it is just forming but it is ultimately the highest revenue for the least cost in the industry. I think the CEO knows it and I think he is trying to position us to grab this Golden Fleece. This wont happen tommorrow, but will happen IMO within the decade.
When it does, if he has made the right moves, the 1st case of Chateau Lafite Rothschild is on me.
THanks for the Hello, and thank the board for the very good info shared here over the pass several days. The efforts are much appreciated.
DW Health Partners
Investment Philosophy
The core of our investment philosophy is predicated on two pillars:
Flexibility: We are flexible in catering to an owner's desires post-closing, as well as in structuring transactions. We prefer partnering with management teams, but have the bench strength of executives to complete a buyout if the owners seek full liquidity. We prefer to purchase control in transactions, but have the ability to invest in minority transactions as well.
Growth: One area where we are not flexible is our orientation toward growth, whether it be through organic initiatives or via strategic acquisitions. Our focus on growth also impacts the way we capitalize businesses, and we avoid burdening our businesses with undue leverage. We generate returns by working with management teams to grow businesses and not by handcuffing growth with excessive debt.
http://dwhp.com/?a=about
Hickory Dickory Dock,
The duck quacked at the clock
The clock struck eleven 11,
The duck said 'oh heavens!'
Hickory Dickory Dock
AIMHO GLTY/A
Great Post, I agree CEO has definately spent this year building out and acquiring the storage capability.
Agree he has had the strategy of eating up those that were foolish in their money. First for the capacity, this year for the cords (stems).
Also agree as you well articulatred appears he is buying these assests for a song.
Agree its the uses for the stems which will drive the market for stems. IMO the market over the medium term is in blood disorder therapy(insurance) (ie post chemo treatment) and in the increase in minority cords (govt) think sickel cell anemia.
Agree the seeds $ for the industry will come from government/insurance with private storage lagging along but steadily growing as stem therapy transitions(with the luck of continued treatment success) into mainstream therapies. IMO this storage transition will flow like a river. Will start as a trickle and gain momentum as it grows, culminating in the widespread use of the DNA testing kit, cost being covered at least partially via insurance. As this segment continues to grow, IMO Ins/Govt will pick up much of the cost of storage thru contracts, and plan coverage.
Wants the industry figures out a "value pricing" model that works IMO more consumers will come on board as private storers. Right now IMO their is not alot of trust in the industry pricing. Afford a cord, CBR,Ccell,CCB many others in the industry all have a pricing model and give it a name. There basically all the same thing.
Choose a storage option- depnding on how quickly you want to pay for the approx $4k it cost for 20yrs of storage. Depending on the choice, is what it will really cost over 20 years. Unless its happens to be lucky tuesday, or you mention saw it on Oprah, or some other reason to discount the $4k. Its a signal the general public havent looked positively on the cost-benefit.
If your in the storage business the salesman's benefits, and the nitrogen bill have to be paid every month, no matter whats coming into the tanks. Same way a car dealer has to no matter whats driving off the lot.
If a car dealer was in the cord business. He would have a business model where he pays for the stems and parks him on his lot. He reaps his reward when someone come and needs the stems. He will be happen to sell you the one you like, for a price of course. Sounds like public storage. Which one will we like , the one that matches us the best
Private storage for now is having a more difficult time convincing the masses for the need for individualized storage.
To woo them the industry is trying to basically price war with coming up with a different ribbon for the same ultimate package, stem storage space. Same way car dealers compete with one another. IMO this cheapens the the industry and distracts from industry trust. Who trust a car dealer, except his mother that never bought a car from him?
IMO the private storage pricing model should work to become industry stable. IMO doesnt seem private storage will become common place without a more stable, unified industry price structure. IMO just the pains of being in on the ground floor of a very soon exploding private storage industry.
Like all, I hope he doesnt R/S at all. Realistically though I just dont see where it wont be a component of the S/S correction. I am very optomistic IMO that even if a pure R/S has to happened, there is no reason to go over 100/1. IMO I dont see where CEO would consider this an afront to shareholders. IMO he simply packages as reality,which he is very good at, saying:
Look thereis no way I can take the company to its destination with 7billion pounds of weight. In order to bring the company forward he has to tighten the structure and move from this form of capitilization. Most importantly immediately IMO it is a requirement of the funders of the CMEX deal.
IMO CEO will promise to work hard to replace the 100/1 shares R/S(if thats the ultimate) with $100.00 shares.
I hope he doesnt have to mess with a R/S - maybe you can help me see it, something that REALLY is feasible, without R/S being involved? Do you agree, there has to be a REAL elimination of approx 98% (6,850,000,000 of CBAI shares)? If not what would be the justification of the higher share count? Seems CEO would agree nothing he has said in terms of 5 year projected revenue that would remotely justified revenue for a 7billion share count.
Curious on your thoughts. I do agree with your post It was well written and right on. I just dont see, I wish I did, where a R/S isnt going to be apart of the progression.
AIMHO GLTY
I think you left out one key part of your question, but I'm sure you were thinking it when you wrote it.
It seems what you were really asking is what 7,000,000,000 share company ever went from .004 to $1 without a R/S. That may take a little longer to find.
Mr Long's example is a 10 million O/S company that emerged from bankrupty at the beginning of this year. Quite definately it had a meteoric explosion. I am sure a few people became extremely wealthy. With 10 million O/S the wealth probably stopped not too many past a few.
CBAI is a little bit different story. I do agree with MrL CBAI has a potential for a vrml type rise, but in its own way.
I think I could confidently say, If anyone holding 1milion shares of CBAI today thinks they are going to become a millionaire from those shares in the next 3 years is dreaming. In the next 10 possibly.
I think I could also confidently say, that if anyone believes that there is any other way to correct the share structure without a R/S being involved, I would say this is also dreaming. (Not that there is anything wrong with dreaming, some even say its necessary for good health).
7,000,000,000 to
150,000,000 <-- when you look at the 2 numbers one doesnt seem to be
much bigger than the other, but those last three zeros on the end of the first number sure pack a BIG wall0p. Without them the first number is 7million, or roughly the population of the San Francisco Metro area, or approx 5% of 150million.
If you put back 1 of the zeros we took off the first number, we get 70million, or the approx population of Turkey, or approx 50% of 150million.
And back the 2nd zero we get 700million, or the combined population of the US,Indonesia, and Brazil, or 450% more than 150million.
If we add back the 3rd zero, we get 7billion or the approx population of the world, or approx 4500% greater than 150million.
There really is a BIG difference in those two numbers.
- As Tina Turner would say, What's 150mill Got to Do With It? Its just a Second Hand Enumeraaation. 150 mill IMO is the max amount of shares CEO is going to ultimately leave with (possible) 30mill remaining a/s and 120 O/s. This is an approx 50/1 R/S. Without getting into debate about ways this number could be lowered, which IMO there are several and believe CEO is working hard on the models to see how low he can get it. 50/1 represents the minimum R/s number, if the CEO chooses the route of correction thru pure R/S. (which I don't believe he wants to but may, if its cost is signfigantly lower than the next best option)
It seems it would be safe to assume the 1mill share holder today, maximum amount of shares after a pure R/S would be 20k shares.
There IMO is also a minnimum amount of shares CEO will leave after the correction(s). 70million, this is a 100/1 pure R/S. Leaving todays 1mill shareholder 10k shares.
Why 70-150 mill? If you look at the O/S of the companies in the industry that CBAI can expect to equate and hopefully surpass over the course of the next 4 years, they generally fall between 70-150million shares, with around 100mill seeming to be the average, throwing out the extremes, like CBAI(Population of the world O/S)-/kOOL(Population of Guatemala O/S).
We know within 90 days(less today) the S/S must reflect CBAI ability to purchase CCel-MEX for 17million. Whose requirement do you think this is?
CCel-Mex? Doubt it. They were running for their lives. IMO they see the writing on the wall. CCel has been stagnant, was slow to see consolidation coming, and can see they are going to be devoured up. The powers that be in CCEL-MEx cashed in as to what they know is their ultimate absorbtion (at 14 million their too small. They knew they werent going to be around for the long haul, stems is an international game, they didnt/couldnt get the access to funds to get into the game. So they took a good deal and directed 150k toward CBAI stock -(today approx 33mill shares. after a 50/1 R/S would leave CCEl-Mex owners (660k shares) approx .005 % of CBAI. Does that fit the deal? Do you think CCElM would have accepted 150k toward CBAI stock if they werent confident in what that number of shares likely would be and the pps to follow, within a week after LOI CEO in his interview all but said there is coming a share reduction and coming within 90 days?
Why they didnt give CCEl first crack at purchase is a mystery, or maybe they did. If our CEO did it stealth, then bows to him, and would be confident in our leadership at CBAI 4 SURE!
Whose requiring the correction, IMO its the sources of the funds CBAI is going to utilize to make the purchase. CEO is deciding on which funds to take. His decision will will determine the course of the correction(s). As he said in the interview, he will choose the one which will impact the broadest numbers of shareholders.(IMO i.e. the pain is going to be felt equally and fairly by all,except who he is getting the $ from). As well as be the least expensive (Whats cheaper than a R/S?)
A dont say the above as a negative, IMO its nearing that time. A reduction of shares is necessary, was planned from the beginning, is healthy for CBAI and necessary to see this company shoot for the 1 Benjamin pps mRL- LONGS 4.
What if your that 1million share holder, that person who was just beginning to see the light when the Worst Possible scenario happens- A pure 100/1 (we already know the reasons it wont go beyond this-if not please start from the top, or refer to my earlier post : ) ).
So now instead of being Dallas,Tx in relation to the world, your now a small suburb of Moscow in relation to Russia.
You know have 10,000 shares, you gave back 2 zeros. There goes the dream. Doesnt matter as its only a dream anyhow.
There is no way today, or in the forseable future of CBAI ever equate to a $6,500,000,000<-- BILLION- Market Cap- $1dollar a share. There is no way they will equate in this same time frame to a $3,250,000,000 <--BILLION Market Cap- .50 a share. 2 bits anyone?, A Mercury? Buffalo Head? A couple of Lincoln portraits? A Subway Token?
If your expecting great things from this stock today, or tommorrow or Mananna's tommorow, or next month, eyeing the number of zeros behind your share count, waiting for that dollar, IMO you will be greatly disappointed.
If you look at in though in a way of understanding that 2015 becomes a very important threshold as many important stem clinical trials are coming due around then, as well as government funding as been allocated thru this time period. Knowing that in order for CBAI to compete and prosper, they must bring the S/S down to the industry avg. ONce this is done, CEO is in the midst of masterfullly positioning CBAI to be in a strategic position (see -logistics/genetcics), once industry consolidation peaks, which IMO will be around 2015. IMO Govt is in the process of picking the winners now- Grants, Contracts, and Regulations- they/insurance will have the biggest say in who ends up on top - BIG CROSS FINGERS CBAI.
If CBAI in 2015 ends up in the position CEO seems to be steering us as the "UPS/Self Storage" of a global stem cell network, and VERY IMPORTANT the clinical trials (even just 1 major or a few minor) come back positive/usable, then I give MrL $100.00 pps a thumbs up @ 150million shares.
That 1,000,000 million today shareholder-who thinks he got a raw deal at a 100/1 split keeping 10,000 shares @ $ 100.00 = $1,000,000.
Is $100 pps possible? MrL posted VRML to answer you ? VRML is a diagnostic health care testing company. Involved in cancer testing basically.
If say some Clinical trials come back and its found stem therapy is worthy of primary or associated therapy for any one of the major diseases and CBAI is positioned to be the industries center of logistics (IMO the real goal) IMO a $100 pps is well within reach.
There are definate signs of a ramp up in storage facilities for the industry, prior to a mass collection of cords their has to be storage. CEO collected the tanks in 2010, he is going to begin to fill them in 2011, by 2015 if the trials are smiles then the tanks should be packed full. If that holds true todays 1million share holder gets his $1 million, just not the same way he would have with VRML.
The CBAI Shareholder has to be patient while their-
$20k turns into 1million shares turns into (at least)10K shares turns into your best chance at $1million, cuz it aint happening under this S/S, but has a decent shot under the next.
Time Frame 5+ years, for the 100 pps chance, the correction(s) are within 3 months. Remember Hillary Clinton was investigated for making 100k of 2k in commodities in less than 6 months. (Pure luck? Or Pure luck she didnt get caught? U B the judge)Dreams are a good time, but reality should always rule the day.
IMO the DNA testing kit over time will be a very lucrative signifigant-strategic product. Very much more than it appears today.
AIMHO GLTY/A
Seems as if CCEl is trying to buy themselves some time.
I dont blame them I would have done it also if I were them.
Imo Ccel has 2 interest in the Deal.
1. To attempt to continue the revenue stream from Mexico no matter who is the owner.
2. To see if there is a way for themselves to purchase CCel Mex, gaining the 70k($70mill)stems.
IMO they will pursue interference with the purchase as long as their cost/benefit remains low. If their cost rise, IMO they will abandon their efforts as they are also being pursued, hostily, and likely will need the cash. Lawsuits= REAL $ Expended.
I dont know what the % of CCel revenue the Mex license is, someone on the board I'm sure does, I would think it is signifigant but doesnt make or break CCEl. It would seem what they likely are looking at is if there is anyway to get the/or any part of- MEX 70k stems. As CEO educated us in the radio show thats really what its all about right now in the industry, as far as valuations of companies are concerned. 70k is ALOT of private stems. Especially in lew of a continued depreseed market for private stems, especially in US. I would think an addition of 70k private stems /annuities that go with them would be a plus for any banking company.
If we agree with CEO definition that an individual cord stem package is worth approx $1000. Buying Ccel Mexico(70k stems) @ $20 million would equal $285/per stem package or a greater than 2/3 discount to the market value of $1000/per stem package. CBAI is purchasing Ccel Mex(70k stems) for less than $20million. Quite a deal! I can see where CCel would want to try and at least put brakes on the deal so they can try and get some stems. Would add alot of value to them, as they either tried and fend off a takeover or they try to increase their value for the inevitable buyout.
It doesnt seem CCEl has too strong a case, but CBAI will still have to address it, costing some time and resources. The results of the hearing will determine how much more CBAI will have to spend on both.
IMO the suit also has a potential to bring CBAI-CCEl closer together. The LOI definately has weaken CCel. They may be faced with a choice whether to chart their own destiny or not, sooner rather than later. If CBAI is in a good financial position to be a quality counter choice for CCel over what likely will become a more forceful,less expensive for CCEl pursuers, moves toward aquiring them. I would think some new pursuers might pop up as its safe to assume Ccel is cheaper to buy today than it was a month ago. I would assume both companies legal teams will have some kind of contact during the suit, IMO this could ultimately be an ice breaker for bigger things at some point down the road.
For certain CBAI needs to CRawl before they waLK, so Mex deal is absolute priority as its a CBAI game changer for sure. The pps eventualy will catch up after the deal is closed. If the deal takes the full 90days to close, seems likely a revenue annoucemnet prior to and the beginning of the China operations will be announced in between, bringing more good news, pushing the company forward.
If revenue growth news continues to come out positive leading up to the close and the S/S corrections, the pps naturally will folow. We may not see it when we look at the charts, we surely are going to feel it after the corrections.
IMO the corrections will be a series of different steps like an Aztec pyramid- stepped, rather than an Egyptian Pyramid- a straight line from the base to the top. IMO the Corrections wil be a series of different measures cumilnating in a R/S 100/1 or less, the less depending on what/how sucessful the previous correction measures where. I do believe the CEO is trying to keep this number as low as he can, with ultimately total shares between 70mill-150million. And an uplisting to the NASDAQ either with the split or in short time there after.
This roller coaster is going to feel like KiddieLand at Six Flags compared to the monster ride were in store for after the correction/uplist, Thats when large Funds will flock in and profiters will flock out. IMO it will fluctuate up/down a great deal until the pps finds its center again for a long steady climb upwards. From then on out revenue will be the pps engine. IMO I would expect $ to begin about the time the streets turn green.
AIMHO GLTA