Petar Ilievski

Shocking Reverse for Cord Blood America Inc (OTC:CBAID)

by Petar Ilievski May 11, 2011
CBAID-logo.jpgWith more than 100% up over a session, Cord Blood Inc (OTC:CBAID) is really a winner after the reverse split from Monday. Actually, this is a reverse of the negative trend that follows this stock for some time now. So, what comes next? CBAID-11.05.11.png

A just question, and a tough one. The last twelve months for this company were ones of stock price decline, interrupted by sudden spikes due to announcements and other catalysts. In terms, what happened this week is not something entirely new in the history of Cord Blood.

Yet, the last time such a sharp jump in the price took place was in the beginning of last year. Let alone, it has been two months already during which the stock would gravitate around the $0.2 levels. The 1-100 reverse split is just on time for that matter.

Actually, there has been much coming from this company lately. Announcements, press releases, interviews with the CEO. Most of them focus on the 10-K for 2010. Which is a bit controversial. These are the results for 2010:

  • total current assets - $1.4 million;
  • total current liabilities - $5.9 million;
  • consolidated net loss - $8.4 million;

Now, while there is a noticeable increase in the revenues and the assets of the company, there is also still a long way before real stability is a fact. The company CEO Mr. Schissler mentions in an interview from April 28th several milestones that should be achieved in the next 12 months. If, indeed, words turn into actions and balance sheet results, stability is possible. If not, as mentioned, this is not the first time where a sharp price increase takes place. In the past, in the most cases in which this happened, an even sharper decline followed.

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