Whew lot of emotion on this board! With a company like Cryoport I can't blame everyone though. Lots of ups and downs. I've owned since 2011 so I've been on board through a lot of it.
Anyway, I think both sides have made some interesting points about this R/S and it's effect on the stock price. Ice is totally correct that we can't look at the past as 100% determinate of the future. We have new leadership, better fundamentals and a steady growth rate. If you look back at stock price just in the last 2 years you've at least doubled your money. Personally I doubled down about a year ago and really helped my cost average.
On the other hand Realty makes a great point about the negative nature of R/S's and some failed promises from CYRX. I personally keep hearing all the sales that are supposed to boost revenues to massive amounts yet we are only improving 20% per quarter. While nice improvement it needs to be significantly higher at this early stage to offset increasing operating costs and make up lost ground.
I guess it really could go either way. I'm a Long as I believe fundamentals will win out long term given our cash infusion (as long as that really happens). Plus there are certainly cases where companies made out big right after a R/S. Check out this blog post from Zen Trader below:
"So when does a reverse stock split make sense?
It makes sense when you have a small company like Marathon Patent Group, a company that offers investors a repeatable business cycle with exponential growth, strong underlying fundamentals, proven producing assets and a highly scalable business plan. With low overhead and tremendous earnings leverage that should increase as operating cash flow funds new patent acquisitions and additional licensing campaigns, institutional investors could soon flock to the name. Marathon affecting their reverse split opportunistically opens the door to the approximate 80% of the investment community previously precluded from investing in the company while trading on the OTCBB. Marathon Patent Group now has both a capital structure and currency more commensurate with both the company it has become and the fundamentals that underlie it.
The reverse stock split will reduce the number of shares of issued and outstanding common stock from 65,858,810 pre-split to approximately 5,066,063 million post-split.
Some good examples of companies that have done very well after a reverse split are American International Group (AIG) and Coeur Mining (CDE). Both had more than doubled within months of doing reverse splits and serve as good examples of companies who have seen dramatic increases in shareholder value because of it."
Those scenarios sound very similar to CYRX. Count me in the glass is half full camp but with some reservations.
