Ive bought and sold these as a trader since 2002. Done okay....

Ive bought and sold these as a trader since 2002. Done okay. Picked up my last lot at 12-12 cent range.

You talk about revenues and are correct. They take umbilical cords and store them in liquid nitrogen.

They make money from actually taking the cords but they then have a charge for storing them every year. This is recurring revenue, a lot like a rent roll. This revenue increases every year as more cords are stored. Got the cords trapped so as to speak.

They also are involved in tests for bigger drug companies which also generates revenue.

They recently moved to larger premises and this sucked up a
lot of capital(liquid nitrogen is expensive to move). Their new premises should be good for about 5 years at current growth rates. Means smaller capex.

Recurring rent is the jewel in the crown if you ask me. They paid a maiden dividend of a cent this year and they should be able to pay more every years as the number of cords stored grows. Its a captive audience, you just cant change cord storers.

Im hanging on to mine. A lot of shares traded this year which was unusual as they were a super thinly traded stock. Possibly some people new the divvie was on the way.

Cheers
Gmac