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.