I am trying to digest your information, but I am not sure I am grasping it. If you could help me understand a few of the connections I would appreciate it.
The potential HCA contract- is a contract to store private cord blood? If it is where is the partnership? Can the parents only store with CBAI? What if a competitor is cheaper? Is HCA going to bar competion from its hospitals for private storage? What's the value of a contract? ( other than HCA evocation of CBAI over others, which would definately increase revenue). If we are talking about private storage, with parental choice, What is the value of this contract?
If the storasge is for dr. written scripts, Then what is the value of this contract with HCA? If a Dr. writes a script , thats covered by insurance, then it would seem it is the insurance companies choice on storage. The insurance company wouldn't tell parents where to store. They would simply say how much they would pay, which would naturally benefit the company with the best storage price. If we factor in the finacing of $1500.00 to the tune of $4500.00 over 20 years in Afford-a-cord, do we really have the best rate?
If its for HCA donated cords. who is the contract with? Is HCA paying us and then owning the cord we store? I'm not sure HCA is in the business of cord ownership. Which if this were the case I would help you squeeze the lemons. If so than this means the cord itself has great value. If it does, why wouldn't we go after ownership, as its seesm multiplication of matched stems seems to be a very lucrative part of the whole process.
A story I posted was on a woman who was going to go thru a stem transplant via an unrelated close match. I think it will be an interseting story to follow. If successful, may increase in value donated stems as we a bridging a technological gap.
Hopefully we are in a situation were there are not enough stored cords to determine how difficult a match would be.
A natural increase in the number of stems would likely increase the amount of close-enough matches, as the demand wouldnt change, just the supply as more and more people donate. But the demand really would change as stem-T becomes more and more of an option, as there are now more matches. Which would be very good for CBAI.
Another story I posted is for a face cream, from stems. According to the PR 95% of the people who used said it had an effect. A bunch of Blarney? Maybe. But who are we as shareholders to judge. The CBAI affiliated- China operation is geared to produce, hundreds of thousands of ointment tubes, and hundreds of thousands of pills.
What do you think is going to be in those tubes/pills, given the Asia penchen for herbal and organic remedies?
If they use cords, they will naturally have to get them from donated or bought stems. multiple them, and sell them as to mass market of aging boomers as skin therapies, and whatever therapies.
Whats more lucrative and an easier sell?
Selling Johnies parents that their healthy baby boy might get cancer? Or the insurance company (which is a harder sell than johnnies parents), thats its cheaper to pay now than later? Or johnnies 57 year old wrinkiling uncle/his siblings living in Bejing, or Berlin, or Buenos Aires, or Las Vegas, that stems can- lessen their wrinkles, for ten bucks a month? Maybe a contract where its a product in woman's makeup. Or Like a tube of toothpaste, applied everyday.
Whats the difference between private and public storage?
Two things- Ownership and Information.
Public storing might have a system like -- sample 20-506934 is an American caucasion male, with the rest of the technical stem info.
-- A private store would know that sample all the above plus is Fred Jones sample, and so would Fred Jones.
What would keep a public storer to adapt their databse to add this information, instantly becomong a private -public storer? If Fred needed his stems and he publically stored them. If they knew where they were at, he would natural have access to them as they would be an exact match. The insurance CO would likely pay, at the going rate of 35K. Wouldnt it be cheaper for the insurance COs to just help the public storers up grade their software to individulas the cord, rather than store upfront on a cord that likely wont be used? They then only pay for demand, rather than potential demand, which is a whole lot cheaper. a 1000 potentials @ 495 is 50k.
We should look back a moment to see hoe we got to here. 7 years or so ago CBAI didnt exist. Its an adaption of Rainmakers- an advertising and marketing firm CEO/wife started on credit cards. One of the clients of the comapny was a cord storage company, CEO wife was intrigued. They started CBAI in 2003. Wife sold cord storage, CEO sold advertising. They started the company on credit cards. They ran out of money. 2004 they got an angel for 1 million
2005 -- they went public. raised 5 million. they went broke. 2006 they bought an 800 stem company. Between 2006/2007 they also bought Corcell--14,000 cords- sales of 5.8 mill. 2008- went broke. 2009- raised 7.5 mill (dilution). 2010- raised 16.8 mill (dillution). storing 20,000 stems. With goal of controlling the global inventory.
So the credit card debt is transfered thru dilution, to you/me. The original debt and subsequent debt is still there in the form of shares and a pps of .005, due to obvious shorting due to such a massive offering.
we sit on the BB ,(with full reporting to NASDAQ rules- if you wonder where were going) at 5,000,000,000 shares with -.03 earnings per share. Its just a transference of the original credit card debt.
CEO is going to have to pay off the debt one of two ways. Thru default (R/S) or thru intrest paid, which would be a pps x number higher the last day before dilution. If thats has already occurred (which it has) he owes no other obligation to any "long" that did not sell at that point, as they decided to hold out for a higher interest rate. He owes nothing to those who bought during dillution, they owe him a thank you for cheap shares, he never told you how long you were going to have to hold them.
A lateral spread of shares does not correct the issue. It only adds cost to the debt. A debt at this point can only be paid thru a higher pps, as at this point its the shareholders who hold the debt.
If you try and transfer the debt to someone other than the shareholder, the shareholder- thru a lower earnings per share- ends up paying interest on that debt, nullifying any gain he may have recieved from the transfer of debt via a higher pps. As pps would reflect the new earnings per share and go back to near the pps prior to the debt transfer.
-- IMO the real issue for the investor is the nearly billion in options top 5 have. I posted a good article- callled -options handcuff- does well to explain one aspect(there are more) of problems this many options causes.
Some long investors now are saying I want or I sure wish I would get my loan paid back. Some not so long investors are saying I have waited long enough I want some profit. Thats more their problem as they just took the wrong side for the last six months. They were a bull when the $ was with Yoggi Bear.
A long really is a misnomer. How is it possible to define a long? Other than a tax technical of holding more than a year?
A long is merely an individual position. Without any connection between another individual position. The exit point for each share is individual rather than communal.
If a man hold 16 mill shares of CBAI and another holds 70k both at a price of .005 if it goes to $2 then 16 mill may cah out (he would be a fool if he didnt), where as 70k may hold on for higher pps. If 70k bought yesterday, and 16 mill bought 4 years ago. If the senitment is the rocket is still being fueled, and the true value is yet to come, Is 16 million a long? Is 70k?
What if CBAI goes to .10 and 70 k sells and 16 million doesnt, then it goes back to .005. Then 70 k buys 170k Is it more honorable to hold at all cost, even at the cost of profit? Or can you still be a long an play the inevitable 5,o0o,0o0,o0o share wave?
At what pps price are you going to squeeze your first lemon?
What does controlling the global inventory mean? Owning the cord? Multiplying the cord? Or warehousing the cord? Where's the $? We can be all 3. We can be the 1st two and not the third. But we cant be the 2nd without being the first(unless we cut the owner in, or really unless they cut CBAI in).
CEO wants to be the most respected/signifigant player in stem industry-- In what capacity?-- Storage? Ownership? Processing?--
Where's the $? - How do you get rid of the dilution debt? i.e- How do you get rid of the post dilution shares. Better said, how do you eliminate equity of the dilution buying shareholders? Do you give them negative equity or do you reward them?
Any clarification I would appreciate. Please help me if I'm totaly missing it. Thanks.
AI
