Cordlife *Official* (SGX: P8A)

[chill_lax]

anybody getting this IPO? thinking of getting some...will be oversubscribe or under subscribe? comments and thoughts on this?

 

[endlssorrow]

Don't know just.buy since is cheap. Lokx

 

[mollys]

made in china. the list of major shareholders doesn't interest me...

 

[Garlic & Butter]

2,000,000 shares for public tranche aka 2,000 lots

not a lot to go around for the public..

demand seems moderate nia.... unlike the heydays of GLP and MIT

 

[thenotveryfunnyguy]

anybody getting this IPO? thinking of getting some...will be oversubscribe or under subscribe? comments and thoughts on this?

seems like a bad stock?? did you buy?

 

[wiz]

This is interesting, did not notice this is coming... I have met the CEO before, nice guy with down to earth perspective and he gave some sound advice to a nobody like me haha

 

[chill_lax]

seems like a bad stock?? did you buy?

still considering..looks like it is not getting much attention from investors..

 

[colour]

is it a good stock? i also considering buy.

 

[lzydata]

This is interesting, did not notice this is coming... I have met the CEO before, nice guy with down to earth perspective and he gave some sound advice to a nobody like me haha

Wow, how did you manage to meet him? (If you can say.)

It's a small IPO. The public offer is only 2m shares at $0.495 or less than a million.

 

[Jarlaxle]

not interesting
buy and dump within t+3

 

[Some-one]

I guess I could not quite understand the business and so would be giving it a miss.

 

[Careful Investor]

The business model is storage of cord blood from umbilical cord and tissues for future use. Understand cord blood & tissues can be used to treat certain illnesses. Some parents who have given birth have subscribed to this storage services and is gaining increasing popularity. It is something like an insurance against future illness should you need these blood and tissues. Those who have subscribed to the storage would have continued for as long as it is needed. So if they are able to garner such subscription services, they will have guaranteed flow of future income. I think it is not a bad business model.

The public tranche is only 2m shares and 58m placement shares, so in total 60m shares.

I have applied some as I support medical development.

 

[cc2mss5]

i'm actually a client of cordlife as we stored our child's cord blood for future use.

still deciding to apply the ipo or not

 

[Paul Lee]

I can see the potential of the business model but there are some issues with the whole 'stem cell' industry that a potential investor need to consider.

Sidenote: Those with National Geographic channel, try to catch the documentary 'Supercell' which gives an interesting overview of the issues, the ethnics and the potential of the use of stem cell.

Back to Cord Life, the biggest issues I see with the company is as follows:

(1) The use of stem use is still mired with a lot of ethical and moral issues and its not exactly mainstream medical treatment at the moment. But China is jumping on it in a huge way and the potential is quite astounding.

(2) As with any medical treatment, its biggest threat is that a new breakthrough in medical treatment can render the use of stem cell obsolete. The biggest current treat I can think of is the use of 'nanobot' that may be able to do many of the thing stem cell can do without the need for storing the embryonic stem cell to begin with. Of cos, the mainstream use of 'nanobot' is probably as way off as the widespread use of 'stem cell'

So I guess, as long as Cordlife can appeal to the 'kiasu' human nature, strike up the 'fear factor' in all parents into buying 'insurance' for their precious new born (estimated at ard $250 x 21 = $5,250 per baby), its revenue stream is even more constant than the teleco and utilities.

Maybe worth a deeper look.

 

[Carnage]

But the problem with their business model is that they face exposure to risks from stem cell research breakthroughs.

If somehow stem cell research improves such that it enroaches upon their business, then their revenue streams cannot be sustained in the long term.

Not vested.

 

[Paul Lee]

Actually any breakthrough in stem cell research can be an impetus for their business.

I just remember another threat to their business - pubic cord blood bank. I think SGH has one.

And I read somewhere (but need to verify this) that storing yr child's cord blood may not be the most useful for your child but can be so for the siblings. So a private cord blood bank may not be viable in the long run if this is proven to be true.

But the margin for the business is damn high!

 

[Dividends Warrior]

Birth rate falling.

Lesser babies mean lesser cord blood right?

 

[yantao]

The only direction for their business now is up, until something else big in the medical field that dispute the usage of the blood.

Niche market that only have one chance to get in, hard to discontinue and margin seems to be quite high.

But small float will attract little attention and will be quite hard to sell later once the novelty is over.

 

[Careful Investor]

True, there is falling birth rate. But unless there are financial hardships or other reasons to warrant termination of services, the income every year will be incremental, ie those signed up in the past years + new signups every year, so sort of guaranteed and annual incremental income. Plus their venture in China market also opens up opportunities, especially in this year being the year of dragons.

True, there maybe new medical breakthrough. But I believe those in the medical fields will be in continuous medical research & development. So it is unlikely that they will sit and wait for the new medical breakthrough to render their services obsolete. Also new medical breakthrough will take few years to develop and test. So at least for the short term, the company's business model still looks attractive. And their gross and net margins are high. And theirs being niche market, there is lesser competition. Increasingly a lot of parents subscribe to the belief in cord blood and tissues in saving their children's / the siblings' life.

So for the time being until further medical development that obsolete them, their income should be one direction up.

 

[Jarlaxle]

public cord bank is free