Cesca Therapeutics, Inc. (NASDAQ:KOOL)

CAPS Rating: 3 out of 5

The Company is a supplier of products that process, store and administer therapeutic doses of adult stem cells for treatment of disease and injury.

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Player Avatar zzlangerhans (99.78) Submitted: 12/9/2007 8:20:31 PM : Outperform Start Price: $1.92 KOOL Score: -36.86

This stock has been severely punished for underperformance the last two quarters and is poised for a rebound with any upward sales momentum in BioArchive or AutoXpress. Given the recent declines in sales despite increasing importance of autologous stem cell preservation, sales would seem to have a good chance of recovery. Ideally I'd wait a little longer to be more confident the price had bottomed, but CAPS requires me to get in before the market cap drops below 100M.

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Member Avatar medixbio (< 20) Submitted: 12/3/2009 1:58:37 AM
Recs: 1

Fast forward....it's been 2 years since last time anyone commented on this stock.

I entered this stock a little over 16 months ago, the economy went thru hell so did KOOL for very similiar reason... those who drove the cars were sleeping on wheels.

KOOL was a typical example how a small company facing the tremendous odd to grow up, it failed twice and the stock price told the whole story.

This time is different, I believe and here's why...

1. The new CEO Mel Engle is a turn-around expert. He knew exactly what to do to turn-around this company and he'd been doing that since 7 1/2 months ago he took the job. He cut the cost, subbed out heavy manufacturing, tightened quality control and expanded sales.

2. He guided sequential quarterly revenue growth, decreasing cost and increasing gross margin.

3. His guidance was to break-even at q3(January-March, 2010) and profitable in q4 and he was very serious about the guidance.

4. KOOL has developed 4 very important medical devices in stem sell processing and cryo-preservation for regenerative medicine with little or no competition. The heavy R&D expenses can take a little break while expanding sales to take as much as market shares they can take.

5. The company has enough cash and no debt. The current quarter may well be the last quarter they are in the red. I believe they'll lose 2 cents this quarter and break-even next quarter.

6. Their business model is the rezor-rezor blade business model, all devices they sold will continue to consume the disposables which has a very high profitable margin, they have sold enough number of devices out there and the number continue to grow.

Disclosure: I hold over 1% of all outstanding shares.

Member Avatar zzlangerhans (99.78) Submitted: 12/18/2011 4:47:08 PM
Recs: 1

Fast forward two more years. None of the predictions above has taken place. The stock has reverse split 4:1 which did nothing to arrest the decline. The bottom line is that no one wants this company's products, so their sales remain stagnant. They've turned to soft, opaque markets in China and India where they can make whatever exciting predictions they like to distract from ongoing weak revenues and a neverending failure to turn a profit. This isn't the razor - razor blade model. It's the 8 track tape player - 8 track tape model. Obsolete, done, sayonara. I took management at their word four years ago and risked a CAPS green thumb, but as it turns out they are typical small cap liars preserving their salaries and options for as long as possible as they ride a futile technology into a hole in the ground.

If you held over 1% of outstanding shares in 12/09 and you're still holding, you lost at least $200K not counting what you lost in the 16 months prior to that. Hopefully that's small potatoes for you. For the rest of us, it's a good lesson about not trusting management's excuses for underperformance and trying to bottom feed on the stock when we're not in a position to see the lack of demand for the product.

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