Analysis Posted On June 1st, 2009
Little known stem cell play THERMOGENESIS (KOOL) .53 is our undiscovered pick of the month. We believe more attention will be focused on this company and the sector due to President Obama's recent new policy opening stem cell funding in the USA. ThermoGenesis Corp. is a leading supplier of innovative products and services that process and store adult stem cells for treatment of disease and injury.
http://www.washingtonpost.com/wp-dyn/content/article/2009/03/06/AR2009030602285.html
http://www.thermogenesis.com
KOOL is currently trading around book value with .32 of cash and a low burn rate. The company's valuation is well below it's peers that trade at multiples of 3-4x book. Management in it's last CC stated they expect the company to turn profitable next year thanks to a new product being launched at the International Cord Blood Symposium next week in CA called Res-Q. We believe the market potential for this new product could double KOOL's revenue in the next 24 months.
http://www.thermogenesis.com/stem-cell-res-q-60-bmc.aspx
http://www.cordbloodsymposium.org/index.php
The board recently hired 30 year veteran CEO,J. Melville Engle, who has the experience the company has lacked in the past to launch this new product. Upon coming on board the new CEO made a 100k share purchase @.55 on May 12. We also see a director of the company buying 50k shares at an average price of.555 during May also. These are noteworthy buys since these are the first multiple insider buys in over a year and a half at the company.
http://finance.yahoo.com/news/ThermoGenesis-Names-30Year-prnews-14919228.html?.v=1
http://www.insidercow.com/forms/20090412/0001209191-09-026035.xml
http://www.insidercow.com/forms/20090420/0001209191-09-027808.xml
http://www.insidercow.com/forms/20090412/0001209191-09-025927.xml
On a technical note a KOOL competitor (CYTX) recently moved off its low and made a 100% move. KOOL could make a similar move in the coming months. KOOL does not need additional financing to carry out its business plan as many of the others do. With a rock solid balance sheet we expect no further dilution to this 30m micro market cap company. Trading near its historical low we expect KOOL to trade at a substantial premium to it's current valuation.
Updates
06-04-09 - After hours trading as high as $.649 after the alert at $.53. Less than one week. Huge gains again for the Hidden Gem play. DD pays off.
06-05-09 - KOOL printing $.69 or 30% gainer from Hidden Gems post. We like the idea of taking half off the table for 30% gain in less than a week and now a mental break even stop. Locks in a profit.
06-05-09 - KOOL has hit a high of the day of $.77. It has now gained 45% since the mention at $.53. At least half has to be off the table, if not three quarters of the total position for 45% gainer.
06-08-09 - KOOL hit a high of $.85 after being highlighted at $.53. This Hidden Gems play for the month of June is now complete with a monster gain from mention of 60%.
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