ThermoGenesis Corp. (NASDAQ:KOOL)

pennysplants (99.55) Submitted: 6/28/2007 5:18:47 PM : Start Price: $4.02 KOOL Score: -76.75

I may have entered KOOL at the wrong price in CAPS, but KOOL is looking cool to this RL investor at this price. Catalysts are imminent (summer 2007).

That said, a company that cannot produce its product in sufficient quantity to meet market demand is almost as bad as a company that produces a product that it cannot market or that the market does not want. Hence the sell-off. In this case, I think KOOL was oversold.

Good partnerships (GE), good business model (disposables), good technology, sexy sector (health care, diagnostics, stem cells).

Here's a cut and paste that will help me remember what I was thinking (6/28/07) when I added KOOL to my RL portfolio.

"Both ThermoGenesis (KOOL - Cramer's Take - Stockpickr - Rating) and ViaCell (VIAC - Cramer's Take - Stockpickr - Rating) offer storage systems for stem cells extracted from umbilical cords and held for future use. But Brozak feels that ThermoGenesis operates under a far more attractive business model.

GE Healthcare, an industry heavyweight with real marketing clout, began selling ThermoGenesis' AutoXpress cord blood processing system more than a year ago. Calls for disposable bags used by the AXP system -- a key driver of ThermoGenesis' revenue growth -- have exploded since that time. Indeed, the company suffered a disappointing setback earlier this year as it struggled to ramp up its production efforts.

"The demand [for disposables] is right now considerably exceeding our supply," ThermoGenesis CEO Philip Coelho told investors back in February. Still, "we think when the GE sales force sees the supply matching the demand -- and going above it -- then they will not have trouble finding additional orders."

ThermoGenesis last month went on to report record quarterly revenue, with sales of disposables rocketing 140% as the company worked to address its production problems. But the company's stock has nevertheless suffered in recent weeks, due in part to its removal from the Russell 3000 index. The shares, down 6 cents to $2.45 Friday, currently trade near the bottom of their 52-week range.