Cord Blood America was one of my best picks for 2009 (not my best, but close).  I had correctly called its September move (as the chart below will indicate).  I think that it might be time to take another look at Cord Blood America, Inc. (CBAI). Here is a link to my earlier blog.

Truthfully, it has been flogged unmercifully in the penny stock press.  It has been hailed as everything from the next Genentech to the next Spongetech.  I think the truth is somewhere in the middle.

CBAI is a stock built on hype.  It really hasn’t proven that its business model can actually work.  My wife and I have 4 kids and after each birth we were given the opportunity to harvest cord blood.  We declined each time…too expensive, the value to our children wasn’t clear in our mind, logistics of storing and accessing it….a whole host of reasons.

Having said all this, I think that CBAI might actually make it….at least long enough for traders to make some money. I have been reading the press releases and the company is taking great pains to both dazzle and teach.  Glitzy Las Vegas-style openings are contrasted with PR’s that tell of debt extinguishments, agreements signed, alliances gained, etc…  The truth is that CBAI lives a hand-to-mouth existence.  It has little or no cash and negative cash flow.  Debt is less of a problem than it was in ‘09 with some debt being retired, but they are not “out of the woods”.

I think the chart is positive and if CBAI can catch fire, I would expect to see some strong gains.

Here is the chart

CBAI seems to be consolidating at this level (as my chart indicates).    Any break below the current price of $.009 and the stock should be avoided.  I don’t believe that it will weaken, but, then again, my crystal ball is in the shop.

Good luck and good trading,

Jeffrey Dean

Editor