(PRWEB) June 29, 2005
In recent months, there has been considerable excitement and discussion on Wall Street regarding Stem Cell companies and what many perceive to be the beginning of a Biomedical Revolution. While many of these companies emphasize that they have may not produce any significant revenue for years to come, investors continue accumulating shares and prices continue to achieve new 52 week trading highs. Some of these companies are as follows: StemCells Incorporated (STEM: NASD), Aastrom Biosciences (ASTM: NASD), ViaCell (VIAC: NASD), Geron (GERN: NASD) and CyCro Cell Inc. (CCEL: OTCBB).
Today we discuss a Stem Cell company that has only recently started trading on the Bulletin Board Exchange and that is relatively undiscovered by the masses. Not only has it yet to be discovered, it also is a Stem Cell company that actually earns revenue and has in fact has increased for 9 consecutive quarters!
After reviewing hundreds of Bulletin Board stocks in search of a company that had the potential of providing our members with considerable long-term gains from current price levels, it quickly became apparent that Cord Blood America Inc., could in fact be "The investment opportunity of a lifetime!"
Cord Blood America Inc. is the parent company of Cord Partners, which facilitates umbilical cord blood stem cell preservation for expectant parents and their children. Its mission is to be the most respected stem cell preservation company in the industry. Collected through a safe and non-invasive process, cord blood stem cells offer a powerful and life-saving resource for treating a growing number of ailments, including cancer, leukemia, or blood and immune disorders.
Cord Blood Banking
Cord blood banking is the process of collecting the blood from a newborn's umbilical cord immediately after delivery and cryogenically storing it for future potential medical uses. Because the collection occurs after the cord has been clamped and cut, there is no risk or pain to the infant or mother. Thousands of families are banking their newborns' cord blood because it contains stem cells that are unique to the newborn, and genetically related to their families.
Cord Blood Stem Cells - The Best Kept Medical Secret
With cord-blood research there is not only a potential, but a here-and-now workable medical reality. Adult stem cells which include umbilical cord cells are far superior to embryonic stem cells regardless of how the embryos are created. And because they are obtained from tissue discarded after a baby is born, umbilical cells are free of the political controversy surrounding embryonic cells.
While embryonic stem cells to date have yielded absolutely no successes and 0 clinical trials, adult stem cells, which include umbilical cord blood stem cells, have been successfully used to treat over 70 conditions, including brain and many other cancers, multiple sclerosis, Crohn's disease, rheumatoid arthritis, sickle cell anemia, stroke, limb gangrene, corneal regeneration, heart damage, Parkinson's disease and spinal cord injury.
Large and Growing Market
The market for private cord blood preservation has been estimated at $125 million in the U.S. in 2004, penetrating 3.5% of the approximately 4 million annual births, uup from roughly 1.9% in 2003. Based on industry estimates, the company expects the market size to grow to in excess of $1 billion per year, as market awareness increases and the applications of stem cell therapeutics broaden.
Incredible Revenue Growth
On November 30th, 2004 CCEL.OB a direct competitor of Cord Blood America Inc. which has traded for several years, reported annual revenue of approximately $12.2 million. On our about that time CCEL's share price and market-cap reached $6 and $66 million dollars, respectively.
Cord Blood America Inc. (CBAI: OTCBB) is expected to report annual revenues this year of approximately $4 million a 500% increase over 2004. They also expect to grow revenues to $10 million in 2006. Nine consecutive quarters of revenue growth leaves little doubt that the company will achieve this goal! In fact there are very few small cap companies that exist today that can boast such an incredible revenue growth record.
It is reasonable to suggest that a company in the same industry producing similar results and exceptional revenue growth would also achieve a similar market cap. With an outstanding share count of 33 million shares we would expect the share price of CALB.OB to reach $2 in 2006 or a 1000% gain from the current share price.
Stem Cell Legislation
Stem Cell Therapeutic and Research Act Of 2005 (HR-2520) Passes The House Of Representatives
On Tuesday May 24, 2005, the House of Representatives, by a virtually unanimous vote, passed HR-2520, a bill that would boost research using adult stem cells, bone marrow, and cells from umbilical cord blood. Opponents to a similar but controversial embryonic bill embraced HR-2520 for its focus on stem cells from umbilical cords. While President Bush states he will veto the embryonic bill, the White House fully supports HR-2520. The legislation will provide $79 million in federal funding to increase the number of cord blood units available for matches.
Once passed the legislation is expected to greatly increase public awareness on the value of cord blood stem cells. As research utilizing cord blood cells emerges to successfully treat diseases that afflict vast portions of the population, it will further enhance the perceived future value of cord blood stem cell preservation and increase cord stem cell banking.
Within a few days of after the announcement, the share price of CBAI.OB surged on record volume!. In July, investors could be in for another upside share price leap as the HR-2520 is expected to easily pass the Senate where majority leader Bill Frist is looking to schedule a vote as soon as possible.
This is only the beginning of what is already perceived by the international community to be a Biomedical Revolution. The entire world is closely following the advances in stem cell research, and everyone is interested in the potential of stem cells to treat everything from diabetes to Parkinson's diseases. The most exciting thing may be what we do not know today. With every new medical discovery and application of Cord Blood Stem Cells; doctors, patients, and investors will be all ears. As more families discover the unprecedented benefits of storing the cord stem cells of their new born, the client base will continue to grow dramatically and the shareholder value of CBAI.OB will grow proportionately.
We are riding on the "coat-tails" of a Biomedical Revolution and this in fact could be "an investment opportunity of a lifetime." CBAI.OB shareholder gains may continue to be realized for years to come.
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