https://ethicalequities.com.au/blog/2018-08-28T01:53:58+00:00All Research2014-01-04T02:56:32+00:002018-08-28T01:53:58+00:00Claude Walkerhttps://ethicalequities.com.au/blog/author/Claude/https://ethicalequities.com.au/blog/introduction-to-cryosite-asx-cte/

<p>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.</p> <p>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.</p> <p>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.</p> <p>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."</p> <p>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.</p> <p><em>The Author owns shares in Cryosite. Nothing on this website is advice, ever. This post is for entertainment (and for my own reference!)</em></p> <p>Sign up to the <a href="https://ethicalequities.com.au/keep-in-touch/" title="Keep in Touch!">Free Newsletter</a> to be updated first when I do detailed research.</p> <p><a class="twitter-follow-button" data-show-count="false" href="https://twitter.com/claudedwalker">Follow @claudedwalker</a><br/><script type="text/javascript">// <![CDATA[<br />!function(d,s,id){var js,fjs=d.getElementsByTagName(s)[0],p=/^http:/.test(d.location)?'http':'https';if(!d.getElementById(id)){js=d.createElement(s);js.id=id;js.src=p+'://platform.twitter.com/widgets.js';fjs.parentNode.insertBefore(js,fjs);}}(document, 'script', 'twitter-wjs');<br />// ]]></script><br/> </p>