InvestorsHub Logo
icon url

ttattletell

12/12/10 11:58 PM

#46354 RE: deseng #46349

"they're going to try and authorize more shares"

The 10Q dated 11/22/10 states shares outstanding as of November 9, 2010: 5,692,564,026...

Starting on November 10, 2010 thru December 10, 2010 there have been approximately 1,479,000,000 shares traded...divide that number by 2 (seller for every buyer or buyer for every seller) and you'll get 740,000,000 shares...add 740,000,000 shares to the 5,692,564,026 which equals 6,432,564,026...the A/S is 6,950,000,000, minus the approx 6.5B equals 518M shares remaining before maxing out the 6.95B O/S...

Agreed, I think you should be very scared...

my gut tells me it means they're going to try and authorize more shares. Which scares me, and I hope I'm wrong.

icon url

Gruber

12/13/10 12:04 AM

#46356 RE: deseng #46349

"At current prices, $125k is ~32 million shares: which equates to about half a percent of ownership in the company. Combine a few people on this board, and you'll easily exceed that amount. It just doesn't seem to me like they want a whole lot to do with CBAI."

Yes,31-32mil shares doesn't seem like a heck of a lot to a company like CCEL..based on today's pps. Do they anticipate a dramatic increase over the next few years? Do they have an inside scoop as to what Matt has planned? Has it already been discussed as part of the deal? Are BCBS and AHIP contracts pretty much a formality that is just going to take a bit of time? Share buyback?

I'm actually intrigued at the fact that CCEL is only receiving $125K worth of shares in this deal. Almost seems like "why even bother" with such a tiny amount. Unless they know for a fact that their 31mil shares are going to be worth a whole lot more in a few years.
icon url

StLXer

12/13/10 12:15 AM

#46357 RE: deseng #46349

You should listen to that something in your gut.

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.


IMO - those sentences mean CBAI is going to increase authorized shares. I suspect it will increase to the 10billion range.

1.5 bill x .004= $6 mill- number of unissued authed shares remaining
3bill x .004= $12 mill -- number to bring auth shares to 10 bill

$12 + $6 = $18 mill <---- enough unissued shares to raise the $17.8mill necessary to buy the company, if he cant find the cash.

Meaning he is buying the company no matter what.

Not to worry IMO as a 100/1 split of 10bill leave 100,000,000 shares. A nice, healthy O/S number for this industry, just based on the assests we have now including this aquisition. IMO there is definately more signifigant positive revenue news around the corner. Meaning the future seems bright for revenue.

So CEO can dilute up to 10 billion without having to raise the MAX R/S threshold. Whether it ultimately R/S or not. If R/S is the least favorable share structure correction choice. Even with 10 bill O/S, the worst case scenario on the last option- The Dreaded R/S- is 100/1. 100mill shares. IMO O/S arent so worrisome after all.

A million share investment today, ($4k) after a 100/1 split -and uplisting to NASDAQ- would leave 10k shares x's likely post split pps of at least $2 dollars would make the investment worth ($20K). For a $4k investment a 400% gain. The share correction definately will happen by beginning of 2013. So a 400% profit in 2 years, Do I hear no complaints? Thats at a $2 pps. A strong CBAI after the correction IMO would definately see a solid pps rise shortly following the correction.

Icing on the cake, before any share correction takes place the diluted pps should still have a few nice runs as CBAI revenues keep advancing. So that future 10kshare holder will still be able to make nice profits while he is still the 1million share holder.

IMO there are 2 companies CBAI1 (pre share correction) / CBAI2(post share correction) -- we shouldnt confuse them.

What looks like moves that are killing CBAI1, are really the building of the foundation to make CBAI2 WORLD CLASS, and a PPS to match!

AIMHO GLTY






icon url

magtv

12/13/10 1:22 AM

#46358 RE: deseng #46349

I figure that we wont look good until a few years from now, from the investor perspective. And with that, I am looking years out and what CBAI provides, along with all the purchases. Its like playing Monolpy, you buy and buy and you may be a little cash short in the interim, but if you hold on, you end up owning everything.

We have made many purchases and appears that we continue, which I am all for due to the current state of the economy, prices, etc. The purchases will obviously have a negative affect on our pps, since ussually the company being acquired share price increases and the acquirer goes down (at least from what I have seen).

As Pit has said, there is not alot of money in this industry. That may be correct, but as time progresses and people are more educated and funds flow, the money will come and we have a great opportunity for profits. That is if we become a major player, which it appears Matt is focused on. I would love the pps to be much better, but I am not too worried about it or dilution if it is for purchases. Now, if the dilution is for operations, then I would be concerned, but from my understanding that is not the case.

I believe in the future of the company and that we are moving in the right direction but regardless, it may not come to fruition. But, I like my chances and I continue to buy. Thats my two cents, not that it matters
icon url

Starlost

12/13/10 8:37 AM

#46370 RE: deseng #46349

I know people want to believe it means a buyback, and that could certainly be good for the pps, but something in my gut tells me it means they're going to try and authorize more shares. Which scares me, and I hope I'm wrong.


I think the same thing. This is leading to MORE DILUTION and less value for share holders. What else is new? Matt just loves to dilute and kill the stock.