I'll have to keep this note quite short, because I'm writing from Strahan in Tasmania, about to go for a walk to see the local platypus (fingers crossed). Tomorrow we'll be trekking in the Wild Rivers National Park, a place environmentalists fought hard to protect from destruction.

Cryosite (ASX:CTE) has been trading above 50c of late, but recently announced that it expects full year profit to be in the range of $800,000 - $1 million, which is over 10% less than FY 2013. The company has two business segments.

The first is the storage of samples for clinical tests. The second is cord-blood storage. Cord-blood storage gets the most attention because it is futuristic and bizarre: it involves the storage of the blood that remains in the placenta and umbilical cord after birth. People choose to keep this blood because they believe stem-cell therapies will eventually mean that access to one's own cord blood could save a life. I have no idea if this will happen in the future, but for someone with significant disposable income, there is a reasonable argument that it is a wise move. It appears that more boring cold storage for clinical trials has better margins, though.

Managing Director Gordon Milliken announced that "Cryosite is in the process of investing in a number of new development activities in both the biological services and warehousing and distribution segments that will have some negative, short- term financial affects."

This has pushed the share price down and I bought shares at 45c. I'm considering adding Cryosite to the Hypothetical Ethical Share Portfolio, and will update the website if it reaches an appropriate price. I plan to write a longer piece on Cryosite in the future.

The Author owns shares in Cryosite. Nothing on this website is advice, ever. This post is for entertainment (and for my own reference!)

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