Welcome back. -- Pennies are a funny thing.
As of May 2010 it cost the US government .167 to make a penny. Or roughly 1/2 a penny more than its worth.
It doesnt always cost this price, it fluctuates up and down depending on the price of copper. As we all know copper is the material pennies are made from. At least one time they were made from steel. I think this was in the Great War, or the Almost Great War, or the Going to be Great War or some war like that.(no offense to veterans). I think the price of copper was too high and they were using it for alot of other things other than making pennies in that war. There must be alot of uses for copper in war, if you look back at copper prices, funny enough they seem to always go up in a time of war. As we are in a time of war it makes since that it is costing us more (taxes) to get are hands on a penny than a pennies worth.
Another interesting thing about $ is it cost about .06 to print a Dollar Bill. So it is much cheaper for us to print 100 pennies than to knock em out of copper one by one. Which also goes to figure during the times we happen to be printing more .06 Dollars
.167 copper pennies are the same times when it cost more to make a penny than a penny.
January 22,2010 there was a "penny" OTCBB stock called CGLD selling for 79 cents. The real name is Capital Gold Corporation. They just happen to be sitting on a large gold (and silver- as where there is one there is usually the other) mine in Mexico. Its not the largest or holds the most potential (its projected to have a 20 year mine life), but it does have one very good thing going for it, the gold right there isnt that far below the surface. So the cost of extraction is very low realitive to the industry average, meaning higher profit margins than the industry avg. Meaning - a NICE looking "penny". I would say made of Gold rather than Copper.
Something funny happened to that 244,000,000 million share company on January 23,2010 it became a 61,000,000 million share company thru a 4/1 R/S. Prior to the day before the split it made runs of a dollar plus and back down to around .79.
After the split the shares were priced at $3.35 and it uplisted to NYSE-AMEX, with a new symbol CGC. CGC closed today at $4.60.
CGC is scheduled to deliever 65,000 to 70,000 ounces of gold to the market in 2011, and will continue to do so as long as the price of gold maintains its value relative to the cost of production (more or less it cost them $300.00 to mine an ounce of Gold), or the life of the mine(est. 20yrs expires).
The price of an ounce of Gold today closed at around $1,390 an ounce, slightly below the all time record $1424.60 less than one month ago. In 2008 it was $800 (the year the company began to take off- netting $500.00/ounce after cost), in 2004 it was $400. Silver it is own way follows right along with it. In 2004 CGC likely wasnt doing so well. They just kind of hung out, so to speak, waiting for gold to make them more than $100.00 ounce. Contemplating what Mark Twain said:
"A gold mine is a whole in the ground owned by a liar".
There are several adaptions to the quote.
If Twain were alive today he surely wouldnt have attributed that to the CEO of CGC. As in 2011 there 65,000 ounces of Gold will be worth around $84,500,000 dollars, at a cost to extract of about $19,500,000 dollars. A difference of $65,000,000.
What a difference 6 years makes for CGC. In 2004 their 65,000 ounces were worth $26,000,000 million less the $19,500,000 cost of production, giving them a haul of $6,500,000. In 08 it was about half as better $800 x 65,000 ounces =52,000,000 less $19,500,000 extraction cost - net $32,500,000. Today obviously their making bank.
Seems pretty good for the CGC investor also. A pre R/S CGC investors 10k investment the day before the split (.79 = 12,658 shares) After the 4/1 split their 3164 shares were worth $3.30/share or $10,441 dollars - Profit. Today those same shares are worth $14,554. A 40% profit in 12 months. Hmm.. Not Bad...I like it. If an investor invested 10k after the R/S he would have had 330 shares x todays pps of $4.60 = $13,939. Not quite as good as before the split, but still around 40%. With gold at its record high, something slightly disturbing about that math we just did. If Gold keeps going up I think CGC investors are very happy, if it drops back to 6 years well I hope they cashed out.
Mark Twain also said:
The first time I ever saw St. Louis, I could have bought it for six million dollars, and it was the mistake of my life that I did not do it.
- Life on the Mississippi
-----
CBAI interesting enough functions something like a mining company. Rather than extracting Gold, we extract stems.
Like a Gold mining company, we got to go thru alot of gunk and stuff to get to the Gem--s- I mean Stems. Then after finding ounces of Gold or stems we have to clean them up and process them so we can see what we got and prepare them to be turned into something other than they currently are. For Gold that means chiseling away the rock around it, polishing it, cutting it, molding it into may be jewelry, coins, bars, teeth, industrials, wedding bands (lots and lots of wedding bands). Shortly after coins to pay for them I would think wedding bands would have become one of the primary cash cows for Gold. Probably has been that way ever since(please no wedding band scholars). So a Gold miner must spend money up front to extract a product that the consumer has a fluctuating appetite far, hoping during times of limited demand (except in wedding bands) to survive long enough to sell it when the consumer wants it the most. Like, Today. Reaping huge profits relative to the cost of extraction. For ever ounce a Gold there is usually a silver lining right near. So extraction and processing of Silver is the Gold miners side business. Its just nature.
For stems (CBAI) the mining company goes thru a similar process. They have to obtain the rights to set up a mine and a processing facility. Have to meet all the Local, State, and Federal regulations. Must test the system, processing plan, team and equipment in place. For CBAI the goal is to seperate the white blood cells from the red (very basically) and store them nice and neatly, about 3 ounces of them in a cozy plastic bag in a deep cold sleep. At a cost of extraction. If you think about it in terms of Afford-A-Cord, they wouldnt have priced it at $495 and taken a loss on initial processing. It probably safe to assume the cost of stem extraction and processing for CBAI is around $300.00 per cord (3 ounces) or $100.00 an ounce. So if we process the cord at the Afford-A-cord price, we make (raw #'s) $200 dollars a cord or about $66.00/ounce. If we get the regular market price of $2000 then it still cost $300 to extract but we make $1700 dollars or $566 dollars an ounce. What was CGC 2008 net ounce profit after cost? When did the company start to rise?
Stems storage and Gold mining diverge a little. The basic goal of a Gold miner is to find a plot of land, dig for the gold , get all he can, sell it for as high as he can, then spend as little as he has to leaving to go look for the next vein of Gold.
The basic goal of stem storage is to created relationships and marketing campaigns to create a steady stream(vein) of stems, to be processesd, catalog and stored in order to be used for a specific peurpose at a later date (research, close match, exact match,etc). Stems are extraction, processesing and proper retention. Gold is extraction, processing and distribution, with proper retention up to the individual.
The money in stem storage is on the back end, on the storage, not on the front distribution. It is why IMO we will see the price of annuity(yearly storage) rise and the price of initial processing fall- it all ready has- (the mask of Afford-A-Cord will fall away).
Yearly births in the world are around 130,000,000 million. CBAI is now on 4 of the 7 continents, one of those only penquins are born. I would think it is safe to assume within 5 years CBAI will have captured .005% (65,000 cords/year) - one half of one percent of 10% (13,000,000 million) of the stems cords of worlds births a year. At Afford-A-Cord prices thats $32,175,000 million dollars a year + $8,125,000 in yearly fees 1st year for total of $40,000,000 dollars a year less the $300 dollar upfront cost nets $19,500,000 1st yr/ $8,125,000 for every year of the 20 yr contract $32,175,000 + $162,500,00 = $194,675,000 dollars worth of contracts each 65,000 stem storage year (1 half of one percent of 10% of the total world cord stems available)
There was recently posted here a story of the first child cured of Leukumia thru stem cell transplant (HER OWN).
Gold prices com and go, As Frank Sinatra sings, That's LIFE, thats what all of the people know, some times your up some times your down. And when were down we try to scrape, and poke, and scratch, and crawl to try and turn it around. Thats always how its been, that always how it will be.
The amount of gold by man in the history of our existence is roughly 5 billion ounces around 160,000 tones would fit entirely into 2 Olympic sized swimming pools. Its definately becoming harder and harder to find, cost of producion keep rising.
Cord stems have no mine expected expiration date, as long as their are wedding rings there will be cord/placenta(silver lining )stems, roughly 130,000,000 of them a year. Um-- thats not going to change. Do you really think CBAI will only have one 1/2 of 1% of 10%($194,675,000 @ Afford-A-Cord prices) of the the world's yearly availble cords in ten years? Do you think the only revenue we will have in ten years is cord blood storage? Do you think cord blood storage will be the main part of CBAI business in ten years? If CBAI can pull in 1/2 of 1% of ten 10% of world cords a year creating yearly contracts worth $195 million dollars. If this isnt the main part of the business, how much a year is the main part going to be worth? It would seem a staggering amount.
Does 1/2 of 1% of 10% (65,000) of world's cords(130,000,000) a year seem unobtainable for CBAI? Unobtainable in ten years?
If you knew that in ten years CBAI would have contracts worth $195,000,000, just for private cord blood storage, how many shares would you by tommorrow?
How many stories about beautiful little girls being cured of a terrible cancer- tied to their own stems cells do you think it will take before 10% of the worlds parents a year, 13 million, decide its better to pay $4,000 over 20 years ( the cost of 1 $50.00 season ticket to any baseball team you choose to cheer). To ensure if their child needs it they will have their best chance of survival. If they do nothing else, and CBAI captures 1/2 of 1% of 10% of this group- 65,000 private cords a year. Its a $195 million 20 year contract each year. What do you think the pps will be when that occurs? Do you think it will occur within 10 years? (1/2 of 1% or 10% of the worlds births)?
You said in your post that ther is no way CBAI is even in Google's league. Google is a wonderful thing. I used it to get some of the information in this post. I think I can honestly say Google has opened a whole new portal of life for me. I interact with people I couldnt have before, I can virtual visit places I likely will never see. I can save information for later recall. I can communicate in whole new ways. Everyone knows what you mean when you say Google it. Google is basically the premier Data Mining company today. Before Google it was Yahoo, before Yahoo it was, Lycos, Webcrawler, Exicte,Alta Vista, and Ask.com etc.
Gooogle dominates the orginization and dissemination of information until someone does it better, then they lose dominance, and begin to fade away. Yah...o...o.....
CBAI - EVERY year has a opprotunity to caputure as many of the guranteed 130,000,000 cords produced a year as they can. CBAI has relationship and ownership of processing facilities on 4 continents. CBAI has current capacity for at least 275,000 cords. Dont think dilution will have any effect on this opprotunity, rather it looks like it created it.
Gold traded at its all time high this month. There 20 years worth of physical gold in CGC mine. @ 65,000 ounces gold a year produced(avg (todays price) $1300= $84,500,000 dollars. CGC closed today at $4.60
Google share price (thank you google) closed at $564.35, representing the value and software patents that currently control the way we dissimenate information. So essentially intellectual property.
CBAI share price was .0004 today. It is not profitable and has 700,000,000,000 authorized shares, all but 1.5 billion outstanding. Its in debt.
A little girl was officially cured of Lukemia the other day via stem cells.
CBAI has a facility in VEGAS with an added up stairs, capcity of about 500,000 stems in a 17,000 sq foot facility. CBAI has a 10% equity stake in a future (bulding now) storage facility in China, roughly 10 times CBAI Vegas facility, So likely will hold upwards of 5 million stems. At Afford-A-Cord pricing once filled- it will have generated $2,475,000,000 initial storage + a $100 (I know its not AFC price) $500,000,000 - = total 5 million stem 20 yr storage value- $2,975,000,000 - CBAI cut 10%= $297,000,000 dollars. That contract is already signed.
In 20 years CGC if they get $1300/ounce and produce 65,000 ounces a year (think thats going to happen?) will generate $1,680,000,000 dollars at their mine. Then it will be done.
10,000 dollars tommorrow gets you -
17 shares of Google
2173 shares of CGC
2,500,000 shares of CBAI
Which "GOLD" would you rather put your 10K in - Virtual, Yellow, or Copper? -- When you really think about it "pennies" seem a little undervalued. Without at least one of them anyhow, where would we go to get the medicine we need to try and get us thru that rainy day, that surely one day will find us all?
I think I will keep collecting more of this "penny". It seems at least right now to be worth more than its weight in Gold.
AIMHO GLTY/A
AI
Market Data 
Markets 
