Nelly Shishkova

CRYO-CELL International, Inc. (OTC:CCEL) Cuts Off The Racing Gain?

by Nelly Shishkova September 14, 2010
CRYO-CELL International, Inc. (OTC:CCEL) started the week with racing speed. Yesterday, it added over 55% to its price and CCEL_chart.pngits traded volume jumped up to over 511,000 shares. The huge progress of the stock made its price exceed $1 after being below that level over the last weeks.

Most probably the things that have provoked investors this time have been the positive news on the company and the promotional newsletters.

Last week, the company confirmed a presentation at Rodman & Renshaw 2010 Annual Healthcare Conference and an unsolicited, non binding proposal from a private equity group to acquire all the outstanding shares of CCEL for $1.50 each.

The good news along with the promotions immediately supported the stock and sent it towards the top of the chart. But not for long.

Cryo_Cell_logo.gifCryo-Cell International, Inc. is engaged in cellular processing and storage, focusing on the collection and preservation of blood stem cells for family use. Last year, the company used to trade about 50% higher, however, since then the stock has moved down.

The quarterly report of CCEL points out that its revenues and gross profit have increased, though the net loss also got higher. The company has registered more liabilities than assets and it has long-term debt.

According to its 10-Q report, Cryo "anticipates making non-discretionary capital expenditures of approximately $500,000 over the next twelve months" and "The Company anticipates funding future property and equipment purchases with cash-on-hand and cash flows from future operations".

Today, it seems that the up move of CCEL was broken and the future of the stock should be carefully considered.

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