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  Cord Blood America Inc. (CBAI.OB)

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Cord Blood America Inc. (CBAI.OB)

Stock symbol: CBAI.OB………………....…..……....…..……….………Float (5/1/10):5.03bb
Stock price 7/15/10: $.0060.…..…..…...………….…..…….Common shares 5/1/10: 5.08bb
52 week Range: $0.001 to $.025 ..….………....……Equity market capitalization: $30.5mm

Recent News…..Stock Price…..Chart…..SEC Filings

NEW CEO INTERVIEW

CEO Explains Continuing Education Course for Nurses July 12 read more & listen

SIGNIFCANT UPDATE

Moving to Close Acquisition of BioCells, Inc., One of South America's Largest Stem Cell Companies July 14 read more

BUSINESS

. Vertically integrated cell processing & storage for cord blood stem cells -- 50% cell processing, 50% cell storage
. Positioned to become the industry’s vertically integrated price & quality leader
. Generates high-value recurring income with less than 1% cancellation/default rate

New News: Cord blood transplants a viable option in leukemia, June 15 read more

PURE PLAY IN FRAGMENTED INDUSTRY

. CBAI is the only public company in the U.S. totally focused on the cord blood stem cell processing & storage market
. With strong expected internal growth coupled with an aggressive, non-dilutive, roll-up acquisition strategy

VALUATION SUMMARY -- potential three times per share price increase

Organic internal growth

With the new pricing policy, discussed below, CBAI should be able to significantly increase new account additions

Low-range estimate: 500 per month

. If new account additions average 500 per month for the next 24 months, then contract value (similar to oil reserves) would increase by $72mm, at $6,000 net present value per contract
. If $72mm is added to the current market valuation of $32mm
. Then CBAI could be valued at $104mm or over $.02 per share, a increase of over 3.3x the current $.0063 per share price

Mid-range estimate: 750 per month

. If new account additions average 750 per month for the next 24 months, then contract value (similar to oil reserves) would increase by $108mm
. If $108mm is added to the current market valuation of $32mm
. Then CBAI could be valued at $140mm or over $.028 per share, a increase of over 4.4x the current $.0063 per share price

High-range estimate: 1,000 per month

. If new account additions average 1000 per month for the next 24 months, then contract value (similar to oil reserves) would increase by $144mm
. If $144mm is added to the current market valuation of $32mm
. Then CBAI could be valued at $176mm or over $.035 per share, a increase of over 5.5x the current $.0063 per share price

Growth by acquisition

The above valuation does not account for roll-up acquisitions, expected to increase earnings per share.

NEW PRICING POLICY

Each new contract is worth $6,000 in net present value to according to CBAI

The new pricing program (see ‘afford-a-cord’ below) is designed to
. Expand the overall market
. Consolidate the industry by exerting price pressure on smaller competitors

SMALLER COMPETITORS NEED AN EXIT STRATEGY

. As the expected industry consolidation occurs, CBAI offers a unique exit strategy for smaller competitors who are not as vertically integrated
. Through an acquisition roll-up strategy CBAI offers smaller competitors a unique and liquid exit strategy where they can still participate in the industry’s through CBAI’s growth

CEO UPDATES & INTERVIEWS

CEO Speak to at Nevada Development Authority Celebration, June 9 read read more

Details the Value of New 'Afford-A-Cord' Program, June 4 listen now & read more

Reduces Initial Storage Fee to $495 With Launch of 'Afford-A-Cord' Program May 26 read more

Updates Investors on First Quarter 2010 Achievements, May 21 listen now & read more

Discusses Company Strategy in Interview, May 6 read more

Discusses Significantly Increasing Revenues, April 22 listen now & read more

Discusses China Expansion, April 1 listen now & read more

Provides European Acquisition Details, March 25 listen now & read more

Visits China; Sets 2010 Goals: Acquisitions, Diversification, Organic Growth listen now Feb 22 read more

Business strategy Overview, January 12 listen now

NEWS

Provides Placentas for Transplantation, April 20 read more

LOI to Purchase Controlling Interest in BioCells, Inc., a Major, Profitable South American Company, April 19 read more

CBAI Names Official Spokesperson: The Nation's Number One Advocate for Saving Cord Blood Stem Cells, April 8 read more

Signs License Agreement to Operate Stem Cell Collection Business in China March 31 read more

Acquires Controlling Interest in One of Germany's Largest Cord Blood Storage Companies, March 24 read more

Corporate Profile for Brokers, Investors March 17 read more

CBAI Aims to be Number One Stem Cell Storage Company in the World, March 16 read more

Among Diseases to be Treated With Umbilical Cord Blood Stem Cells March 9 read more

Names Shamoon Ahmad, M.D., Director of Its Medical Advisory Board, Feb 26 read more

AUDIO INTERVIEW, Shamoon Ahman, Med Advisory Board director listen now Parkinson's, Diabetes listen now Feb 22 read more

MORE DEVELOPMENTS

Finalizes Cord Blood Stem Cell Processing and Storage Agreement with BioCells, a Major South American Company, Feb 8 read more

Grand Opening Available for Investor Viewing, Jan 26 read more

$6 Million in Notes Retired, Jan 26 read more

Contract With BioE; Provides Clients Highest Quality, 'State of the Art' Processing System for Cord Blood Storage, Jan 21 read more

Contracts With Center for Stem Cell Awareness to Sell Collection and Storage Services in Florida, Jan 19 read more

Cord Blood America Announces $1.35 Million Note Retired, Jan 6 read more

CEO of Cord Blood America (OTCBB: CBAI) Reveals His Company Has Voracious Appetite for Growth, Expansion and Acquisitions, Jan 5 read more

Announces Cord Blood Stem Cell Processing and Storage Agreement With BioCells, a South American Company, Jan 4 read more

Cord Blood America Says 2009 Debt Reduction Tops $10 Million, Dec 16 read more

Blue Cross And Blue Shield Association National Labor Office Selects Cord Blood America's CorCell ®, Dec 10 read more

Announces Grand Opening of Lab, Corporate Offices on January 22, 2010, Dec 8 read more

CEO Matthew Schissler Interviewed on Company's Progress, Nov 23
"My message is: 2010 will focus on top-line revenue growth including organic growth, acquisitions, and diversifying the revenue streams,"
read more

Debt Down; Gross Margins Up: Balance Sheet Significantly Improved, Nov 16 read more

KEY CBAI EXECUTIVE INTERVIEWS

CEO Updates Advantages of Las Vegas Laboratory, Explains Recent S1 Filing
Interview, Nov 6
listen now

  • The S1 registration statement withdraws an earlier filing, saves CBAI money, and will not be used until necessary.
  • New Las Vegas lab reduces costs because lab services will no longer be outsourced.
  • Will increase gross profits.
  • Will increase CBAI’s revenue streams, with significant new opportunities to store other biological products and other lines of stem cells including stem cells from other companies.
  • Gives CBAI the opportunity to work and partner with other stem cell companies in research and development.
  • New Las Vegas Laboratory Director Interview, Oct 30…listen now

    • Dr. O’Neill stressed that the new Las Vegas laboratory substantially increases the revenue potential for Cord Blood America.
  • Dr. O’Neill said, "CBAI will supply components to be used in medical procedures for nerve regeneration, cartilage regeneration, and the regeneration of muscle and other tissues. We are working to make Cord Blood America a cell therapy service provider, which we believe is where the future resides," Dr. O'Neill explained. "We will become like a cellular pharmacy."
    • Dr. O'Neill, with a significant business background with companies in the stem cell sector, and author of more than 75 publications in the field, said "Stem cells will increase our quality of life."

    CEO Progress Interview: Las Vegas Laboratory, Oct 15…listen now
    Operating day to day operations from its headquarters at the 17,000 square foot facility at 1857 Helm Drive, near the Las Vegas airport.

    • The purchase of laboratory equipment has begun and is in process of being set up and readied for validation. The remaining equipment is actively being sourced and expected to be completed by November.
  • CBAI expects the first of its cryogenic tanks for storage to begin arriving in December and anticipates a final count of 20-25 tanks to be installed and storing umbilical cord blood stem cells by the end of January. The facility will perhaps be the largest cryogenic storage lab in the U.S.
  • Expects to hold a grand opening ceremony at the facility, with the date to be announced
  • OTHER SIGNIFICANT DEVELOPMENTS:
    Debt Reduction Tally: $8.7 Million in 2009; $3.7 Million in Third Quarter read more

    Preferred Pricing for Blue Cross of Northeastern Pennsylvania Members, Aug 18 read more

    OVERVIEW

    • Emerging leader in a visible growing market
  • Umbilical cord blood collection, a non-controversial and valuable source of stem cells
  • To treat a growing number of ailments, including cancer, leukemia, blood, and immune disorders, and in the future tissue regeneration, wound healing, etc.
  • GROWTH PLAN SUMMARY

    • Generate growth internally -- by signing up new insurance and hospital partners.
  • Stem Cell Laboratory build-out -- to increase competitive advantage by providing tighter, more cost effective vertical integration
  • Expand market share -- by acquiring smaller competitors that have a positive cash flow
  • Continue to reduce debt -- thereby increasing cash flow
  • EARLIER NEWS

    $1.6 Million in Debt Retired in Third Quarter 2009, Aug 25 read more

    Preferred Pricing for Blue Cross of Northeastern Pennsylvania Members, Aug 18 read more

    Retires $2.53M Obligation. Aug 5 read more

    CEO Discusses Reasons for New, Large Stem Cell Laboratory, July 30 read more

    CEO on Fox Television, July 22 read more

    Umbilical Cord Blood Stem Cell & Juvenile Diabetes Research a Future Tipping Point, July 15 read more

    Stem Cell Laboratory build-out
    . Hires Management Team for Its New Stem Cell Laboratory, July 10
    read more
    . Leases Las Vegas Building for Its Own Stem Cell Laboratory, July 9 read more

    Secured $7.5 Million Investment Commitment For Series A Preferred Stock, July 7 read more

    Continues International Expansion, June 22 read more

    Continuing European Expansion, June 11 read more

    Debt Reduced $4.194 Million in 2009, May 27 read more

    2009 First Quarter Results, May 21 read more

    CEO Expands on Thought Process in Owning Stem Cell Laboratory, May 15 read more

    Receives Commitment for $2.3 Million to Fund Its Own Stem Cell Laboratory, May 14 read more

    TARGET MARKET

    Expectant parents

    • Who choose to collect and store umbilical cord blood at the birth of their child
  • For potential use in a stem cell transplant at a later date for the child
  • Or for another family member
  • GROWTH PLAN

    • Build additional sales channels through obstetrics and gynecological practices and other healthcare professionals, hospitals and other health care influencers
  • Continue to build insurance company alliances with, for example, Independence Blue Cross, AmeriHealth, Highmark, Mountain State Blue Cross Blue Shield, the National Labor Office of the Blue Cross Blue Shield Association and others -- to become a named ‘preferred provider’ for umbilical cord blood storage
  • Stem Cell Laboratory build-out to increase competitive advantage
  • Expand market share in the U.S. and increase presence in the European market
  • Acquisition roll-up of other profitable cord blood storage entities
  • Continue organic growth through continued improvement of internal processes
  • WHY STEM CELLS?

    Umbilical cord blood is the ideal (non-controversial) stem cell source

    • The success of current and emerging cell therapies is dependent on the presence of a rich and abundant source of stem cells.
  • Umbilical cord blood emerges as an ideal source for these cells.
  • Following the first successful cord blood transplant performed in 1988, cord blood collection has grown.
  • Lifetime usefulness

    • Stem cells have been successfully recovered from cord blood after at least fifteen years of storage in liquid nitrogen.
  • These cells may be able to retain their usefulness at least as long as the normal life span of an individual.
  • New therapies utilize stem cells

    Researchers have reported progress in the development of new therapies utilizing stem cells for the treatment of cancer, neurological, immunological, genetic, cardiac, pancreatic, liver and degenerative diseases.

    INDUSTRY BACKGROUND

    Umbilical Cord Blood Banking

    . Stem cells have been successfully recovered from cord blood after at least fifteen years of storage in liquid nitrogen. However, these cells may be able to retain their usefulness at least as long as the normal life span of an individual.

    . The success of current and emerging cell therapies is dependent on the presence of a rich and abundant source of stem cells. Umbilical cord blood has been emerging as an ideal source for these cells.
    . Following the first successful cord blood transplant performed in 1988, cord blood collection has grown. In the past decade, several public and private cord blood banks have been established to provide for the collection and preservation of these cells.
    . Private, or family, cord blood banks such as Cord, collect and store umbilical cord blood on a fee-for-service basis for families. This blood is preserved and made available to the family in the event the family needs stem cells for a transplant.

    Stem cells

    . The human body is comprised of many types of cells with individual characteristics and specific functions. Cells with a defined or specialized function are referred to as differentiated. Examples of differentiated cells include nerve cells, red blood cells and skin cells.
    . Differentiated cells are replaced and renewed over time from a population of rare, undifferentiated cells known as stem cells. As stem cells grow and proliferate, they are capable of producing both additional stem cells as well as cells that have differentiated to perform a specific function.
    Stem cell differentiation is prompted by specific cell-to-cell interactions or other molecular signals. These signals trigger a change in the cell’s genetic profile, causing specific genes to become active and others to become inactive. As a result, the cell develops specialized structures, features and functions representative of its differentiated cell type.

    . There are many types of stem cells in the human body. These stem cells are found in different concentrations and in different locations in the body during a person’s lifetime.
    . Current thinking suggests that each organ and tissue in the body is founded, maintained and possibly rejuvenated to different degrees, on a more or less continual basis, by specific stem cell populations naturally present in the body.

    CBAI PROVIDES

    For an initial fee of approximately $1,950 and an annual storage fee of approximately $125 for each year thereafter, CBAI provides the following services to each customer:

    • Collection
      Provides a kit that contains all of the materials necessary for collecting the newborn’s umbilical cord blood at birth and packaging the unit for transportation. The kit also provides for collecting a maternal blood sample for later testing.
    • Full-Time Physician and Customer Support
      24-hour consulting services to customers as well as to physicians and labor and delivery personnel, providing any instruction necessary on the collection of the cord blood.
    • Transportation
      All logistics management for transporting the cord blood unit to our centralized facility immediately following birth. This procedure ensures chain-of-custody control during transportation for maximum security.
    • Comprehensive Testing
      The cord blood sample is tested for stem cell concentration levels and blood type. Also tested for infectious diseases. Results are reported to both the mother and her doctor.
  • Cord Blood Preservation
    . Cord blood unit is cryogenically frozen in a controlled manner and stored in liquid nitrogen for potential future use. Data indicates that cord blood retains viability and function for at least fifteen years when stored in this manner and theoretically could be maintained at least as long as the normal life span of an individual.
  • OTHER CBAI DEVELOPMENTS

    Cord Blood America Says Debt Reduced $4.194 Million in 2009, May 27, read more

    Receives Commitment for $2.3 Million to Fund Its Own Stem Cell Laboratory, May 14 read more

    Cord Blood America to Acquire or Build Its Own Stem Cell Laboratory, May 7 read more

    Further Reduction, $817,000, in Long Term Debt, April 23 read more

    First Storage Sale in Germany; Commitment to Expansion, April 9 read more

    $1.75 Million Reduction in Long Term Debt, April 4 read more

    Reversal of Stem Cell Research Ban: 13 Stocks to Benefit 8 comments, March 12 read more

    Sees Significant Positives in Obama's Lifting of Stem Cell Funding Restrictions , March 9 read more

    Top Stock Performer, March 5 read more

    Restructures Debt; Projects to be Cash Flow Positive, Feb 25 read more

    Now Part of New ETF Innovators Stem Cell Index, Feb 9 read more

    With the Embryonic Stem Cell Trial Cleared by the FDA… Jan 27 read more

    Address: 1857 Helm Drive, Las Vegas, NV 89119
    Telephone: (702) 914-7250
    CEO: Matthew Schissler
    Web Site:
    http://www.cordblood-america.com/
    State or other jurisdiction of incorporation or organization: FL
    Transfer Agent: Interwest Transfer
    Investor contact: Paul Knopick, E & E Communications, 949/707-5365,
    pknopick@eandecommunications.com

    MANAGEMENT & DIRECTORS

    Matthew L. Schissler
    One of the founders and has served as Chairman of the Board and Chief Executive Officer of since January 2003. From April 2001 until January 2003, Mr. Schissler was the President and Chief Executive Officer of Rain, an advertising agency which he founded. From 1994 through March 2001, Mr. Schissler held various management sales positions at TMP Worldwide, Inc., a personnel staffing company.

    Joseph R. Vicente
    Director of the Company since April 2004. Since November 2004 Mr. Vicente has also served as a Vice President of the Company. From July 2002 through October 2004, Mr. Vicente was an independent consultant where he provided strategic consulting services to organizations on acquisitions, operational practices and efficiencies, and sales management. From July 1993 through April 2002, he was a Senior Vice President at TMP Worldwide, Inc. where he held various strategic, operational, and sales management positions.

    Timothy McGrath
    Director of the Company since March 2006. Mr. McGrath has served in an executive capacity for the past twelve years and is currently the Vice President of Finance for BoundaryMedical, Inc. From January 2006 to February 2008 Mr. McGrath served as the Vice President of Finance and Accounting at BioE, Inc. From October 1999 through September 2005 Mr. McGrath served as Vice President and Chief Financial Officer of Orphan Medical, Inc.

     

    IPOdesktop (ID) SAFE HARBOR STATEMENT: Statements contained in this document, including those pertaining to estimates and related plans, potential mergers and acquisitions, estimates, growth, establishing new markets, expansion into new markets and related plans other than statements of historical fact, are forward-looking statements subject to a number of uncertainties that could cause actual results to differ materially from statements made. ID provides no assurance as to the subject company's plans or ability to effect any planned and/or proposed actions. ID has no first-hand knowledge of management and therefore cannot comment on its capabilities, intent, resources, nor experience and makes no attempt to do so. Statistical information, dollar amounts, and market size data was provided by the subject company or its agent and related sources believed by ID to be reliable, but ID provides no assurance, and none is given, as to the accuracy and completeness of this information.

     

    DISCLAIMER: The information, opinions and analysis contained herein are based on sources believed to be reliable but no representation, expressed or implied, is made as to its accuracy, completeness or correctness. Past performance is no guarantee of future results. This report is a paid advertisement and is for information purposes only and should not be used as the basis for any investment decision. ID has been compensated up eighty five hundred dollars from a third party or the company for preparation and posting of this report and other advertising services. This constitutes a conflict of interest as to ID’s ability to remain objective in its communication regarding the subject company. Analysts, principals, associates and employees of ID do not own or trade equities under coverage. For detailed disclosure as required by Rule 17b of the Securities Act of 1933/1934 contact IPOdesktop, 11693 San Vicente Blvd., #350, Los Angeles, CA 90049. ID is not an investment advisor and this report is not investment advice. This information is neither a solicitation to buy nor an offer to sell securities but is a paid advertisement. Information contained herein contains forward-looking statements and is subject to significant risks and uncertainties, which will affect the results. The opinions contained herein reflect our current judgment and are subject to change without notice. We encourage our readers to invest carefully and read the investor information available at the web sites of the U.S. Securities and Exchange Commission (SEC) at http://www.sec.gov and the National Association of Securities Dealers (NASD) at http://www.nasd.com. The NASD has published information on how to invest carefully at its web site. Readers can review all public filings by companies at the SEC's EDGAR page.

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