For the past couple of years I have been hearing that CryoPort (OTCBB: CYRX) is not a "real" company because they don't have significant revenues. Well to those people I would say that no R&D company has significant revenues ... its part of being an R&D company. But those doubters can no longer (at least with an ounce of credibility) say that CryoPort is not the real deal.
Today's news on CryoPort validates a lot of what has been discussed about this company over the past couple of years. The primary issue facing CYRX is getting the story in front of people. I am not quite sure what CarpeDM is actually doing. I am fairly confident that they are not an IR firm and they don't seem to be much of a PR firm either. Anyone in this business should absolutely know that this type of news needs to include trading symbols in the release. Today it was Federal Express (NYSE: FDX) that was not included and it is the same problem that we had last week with the Quest Diagnostics (NYSE: DGX) release.
April 21, 2008: Federal Express Release
April 17, 2008: Quest Diagnostics Release
Here is the rub. Let's say that there are 500 people that are currently watching CryoPort very closely. They buy when the stock price dips, they read the news, etc. etc. When news like these 2 releases becomes public, this information needs to be in front of A LOT of investors, both retail and institutional. However, by only including the CYRX trading symbol in the releases, no new investors are hearing about the company. It is only being discussed by the investors who already know about the stock, and most of them already own it. Had the ticker symbols for FedEx and Quest been included into the last two releases, CYRX would have been in front of hundreds of thousands, if not millions, of new investors. When good news on a lightly followed stock is seen by hundreds of thousands of new investors, the typical follow through is NOT what we saw over the last couple of days.
Why is this so hard to figure out? An investor who communicates with me regularly recently contacted Stuart Fine at CarpeDM and was told that the newswires are the ones to call and confirm whether it is okay to include another company's symbol in the release and he didn't want to delay the news because they weren't sure how long it might take to get an answer.
First, the newswires only call if the other company's ticker symbol is actually put in the release when it is submitted. Second, if you don't ask for permission to include their trading symbol in the release that they have already approved, you can be assured that you are not going to get it. Rest assured that FedEx and Quest approved their company's name to be included in the headline of the release. As such, I seriously doubt they would object to including the ticker symbol in the body. This news is positive news for their companies (FedEx & Quest) and every public company likes positive press.
Note to Stuart Fine ... Unless you have a better way to get 1,000,000 new investors to read your press releases, how about let's at least ask if we can put the ticker in there. I don't care if it takes an extra week to get the approval, the type of exposure that the last two releases could have generated can simply not be purchased through promotional campaigns or marketing of any kind or any budget.
Okay, enough of that. Here is the facts that we know. They are partnered up with FedEx. They are shipping samples all over the globe for Quest Diagnostics. I have discussed that there has been a world class manufacturer at play here for a long time (going on 2 years now) and they want to get a piece in a big way - a million square feet facility. Does anyone think that this manufacturer is going to drop a couple hundred million to ramp up a facility of this size if there is not going to be a HUGE amount of volume being demanded?
When CryoPort will finalize that deal, I am not sure. I can tell you this though, I own a lot of stock and I am NOT SELLING A SINGLE SHARE.
You want to own "the next Microsoft" ... well, here is your chance. All of the forces that are out there are trying to keep this company out of the spotlight ... in a short time, they won't be able to.
DISCLOSURE: I worked with CryoPort from late 2004 thru August 2007. I assisted them in the process of becoming a public company in 2005 and I am pretty comfortable with the story. On my private equity side, both my clients, and myself personally, own stock in CryoPort and I also personally own some warrants. For the record, I am not consulting to them at this time and have not personally spoken with anyone in management about the status or operations of the company since the fall of 2007.
Monday, April 21, 2008
Friday, April 18, 2008
Update - OTCBB: CYRX (CryoPort)
Well, we are starting to see a dribbling out of news. Some of the news has been good, but some of it has been nothing short of amatuerish.
First, let's get the bad out of the way. The My Wallst page is nothing short of really bad. Really, really bad. NO public company should result to such low end tactics. I don't know who was responsible for this very poor move, but I would NEVER, EVER allow a client of mine to do such a ridiculous thing. Totally amatuerish and probably one of the absolute worst investor relations tools that I have ever witnessed.
The second set of less than stellar work that they did was not to include a ticker of Quest Diagnostics (NYSE: DGX) in their recent press releases. With the conservative stance that CryoPort has taken to date, it is obvious Quest Diagnostics is on board and I would bet that they even reviewed and approved the press release that included the Quest name in the header of the release. However, CryoPort lost a HUGE opportunity to get their stock in front of several hundred thousand investors by not including the Quest ticker in the release. If the Quest ticker is in the release, everyone who pulls up a quote for DGX would see the CryoPort news. While this requires the approval of Quest, I have confidence that this release received Quest's approval and I think it was just a poor job of public relations for not putting the ticker into the release. Period. End of story.
Now that I have aired what I think was done incorrectly, and those items are not insignificant, let's discuss what is going on that is good.
First, based on the recent release about Quest, I believe that my information has been confirmed and that the program described in a prior post was accurate. In a recent audio interview, the monologue that Peter Berry read to us included the term "partner with FedEx". This is the first time I have heard the company use the word "partnership" instead of "we will be shipping through FedEx". I was glad to hear Mr. Berry say "partner" because since the very beginning of the relationship, that has been the intention. I am also hearing word that the new partner site for FedEx clients to ship via CryoPort Express shippers will be up and running in the very near future. Possibly before the end of April, but I will be happy with May.
The next important piece of news that I am waiting on for confirmation of the various rumors out there is to hear that large-scale manufacturing has begun. When that occurs, the game is on. I heard a long time ago that the manufacturing firm was commiting A MILLION square feet. That seems to have been what a few others have heard as well. A million square feet is a lot of space and provides the location to produce several million shippers per month. At that rate, the numbers get VERY large.
Many people think that I am crazy when I start discussing CryoPort. "Trey has been drinking the CryoPort koolaid!" Well, maybe ... BUT, when this stock demonstrates that the company can ship a hundred million shippers each year around the globe, I think I'll trade in my koolaid for a Corona on the beach.
I don't want to wear this subject out as it will take its time to develop. The program is simply too big to just "turn on overnight". Big players involved. Legal teams to deal with at multiple Fortune 500 Companies.
If I get some helpful information in the interim, I'll keep you posted. Out.
DISCLOSURE: I worked with CryoPort from late 2004 thru August 2007. I assisted them in the process of becoming a public company in 2005 and I am pretty comfortable with the story. On my private equity side, both my clients, and myself personally, own stock in CryoPort and I also personally own some warrants. For the record, I am not consulting to them at this time and have not personally spoken with management about the status or operations of the company since the fall of 2007.
First, let's get the bad out of the way. The My Wallst page is nothing short of really bad. Really, really bad. NO public company should result to such low end tactics. I don't know who was responsible for this very poor move, but I would NEVER, EVER allow a client of mine to do such a ridiculous thing. Totally amatuerish and probably one of the absolute worst investor relations tools that I have ever witnessed.
The second set of less than stellar work that they did was not to include a ticker of Quest Diagnostics (NYSE: DGX) in their recent press releases. With the conservative stance that CryoPort has taken to date, it is obvious Quest Diagnostics is on board and I would bet that they even reviewed and approved the press release that included the Quest name in the header of the release. However, CryoPort lost a HUGE opportunity to get their stock in front of several hundred thousand investors by not including the Quest ticker in the release. If the Quest ticker is in the release, everyone who pulls up a quote for DGX would see the CryoPort news. While this requires the approval of Quest, I have confidence that this release received Quest's approval and I think it was just a poor job of public relations for not putting the ticker into the release. Period. End of story.
Now that I have aired what I think was done incorrectly, and those items are not insignificant, let's discuss what is going on that is good.
First, based on the recent release about Quest, I believe that my information has been confirmed and that the program described in a prior post was accurate. In a recent audio interview, the monologue that Peter Berry read to us included the term "partner with FedEx". This is the first time I have heard the company use the word "partnership" instead of "we will be shipping through FedEx". I was glad to hear Mr. Berry say "partner" because since the very beginning of the relationship, that has been the intention. I am also hearing word that the new partner site for FedEx clients to ship via CryoPort Express shippers will be up and running in the very near future. Possibly before the end of April, but I will be happy with May.
The next important piece of news that I am waiting on for confirmation of the various rumors out there is to hear that large-scale manufacturing has begun. When that occurs, the game is on. I heard a long time ago that the manufacturing firm was commiting A MILLION square feet. That seems to have been what a few others have heard as well. A million square feet is a lot of space and provides the location to produce several million shippers per month. At that rate, the numbers get VERY large.
Many people think that I am crazy when I start discussing CryoPort. "Trey has been drinking the CryoPort koolaid!" Well, maybe ... BUT, when this stock demonstrates that the company can ship a hundred million shippers each year around the globe, I think I'll trade in my koolaid for a Corona on the beach.
I don't want to wear this subject out as it will take its time to develop. The program is simply too big to just "turn on overnight". Big players involved. Legal teams to deal with at multiple Fortune 500 Companies.
If I get some helpful information in the interim, I'll keep you posted. Out.
DISCLOSURE: I worked with CryoPort from late 2004 thru August 2007. I assisted them in the process of becoming a public company in 2005 and I am pretty comfortable with the story. On my private equity side, both my clients, and myself personally, own stock in CryoPort and I also personally own some warrants. For the record, I am not consulting to them at this time and have not personally spoken with management about the status or operations of the company since the fall of 2007.
Wednesday, April 2, 2008
OTCBB: CYRX (CryoPort)
So the news is finally out about CryoPort starting "a pilot shipping program for a leading global diagnostic testing company". After a healthy delay, I presume not entirely at the desire of CryoPort, the news comes forth. Now for those who closely monitor CryoPort, this news is both long awaited, but somewhat anticlimactic.
What most of the investors that I have spoken with really want to know is "WHO" are the companies that CryoPort is doing business with? It is nice to say "a leading shipping company" (we learned later that it was FedEx), or a "leading global diagnostic testing company" (we learned later that it is ... ? )
There are posters on message boards that have thrown the name Quest Diagnositcs (NYSE: DGX) out there as a possible user of the CryoPort Express. Actually, I have also heard that name on several occassions, so in my opinion, where there is smoke, there might be fire. Hopefully the details will be forthcoming so we can know for sure.
In an effort to get ahead of the game, I have spoken with a number of people regarding Quest Diagnostics to try and determine a ballpark figure for the number of shipments that they are actually shipping. In my research, I have received similar numbers from two different sources that I believe to be reliable. From one source I heard an amount of "90,000 shipments every day of the year". From the other source, "over 32 million shipments per year". (For the math challenged out there, 90,000 x 365 = 32,850,000. So the numbers seem to be in line with each other.) Neither of these figures came to me directly from either company, so I have to keep some measure of doubt in there for now.
I have also heard, regardless of who the client is, that CryoPort will be controlling the entire process in this relationship. I have no idea as to how much of the 32 million shipments will eventually go through CryoPort, but I have "heard" (not confirmed by either company) that Quest would like move a large percentage of its shipping to the new shipping method if the pilot programs are successful. Now that might just be wishful thinking, but, if the other rumors out there on various sites and boards are accurate regarding the "million square foot European manufacturing facility", I would have to come to the conclusion that whatever the amount is, it is a LOT.
In my opinion, CryoPort is at the edge of something very big. There are not too many opportunities in an investor's lifetime to get into a company that can truly revolutionize an industry. Those types of opportunities are genuinely unique and make a difference in people's lives not just for a few years, but for generations to follow.
I think that we just might have one of those opportunities here with CryoPort.
DISCLOSURE: I worked with CryoPort from late 2004 thru August 2007. I assisted them in the process of becoming a public company in 2005 and I am pretty comfortable with the story. On my private equity side, both my clients, and myself personally, own stock in CryoPort and I also personally own some warrants. For the record, I am not consulting to them at this time and have not personally spoken with management about the status or operations of the company since the fall of 2007.
What most of the investors that I have spoken with really want to know is "WHO" are the companies that CryoPort is doing business with? It is nice to say "a leading shipping company" (we learned later that it was FedEx), or a "leading global diagnostic testing company" (we learned later that it is ... ? )
There are posters on message boards that have thrown the name Quest Diagnositcs (NYSE: DGX) out there as a possible user of the CryoPort Express. Actually, I have also heard that name on several occassions, so in my opinion, where there is smoke, there might be fire. Hopefully the details will be forthcoming so we can know for sure.
In an effort to get ahead of the game, I have spoken with a number of people regarding Quest Diagnostics to try and determine a ballpark figure for the number of shipments that they are actually shipping. In my research, I have received similar numbers from two different sources that I believe to be reliable. From one source I heard an amount of "90,000 shipments every day of the year". From the other source, "over 32 million shipments per year". (For the math challenged out there, 90,000 x 365 = 32,850,000. So the numbers seem to be in line with each other.) Neither of these figures came to me directly from either company, so I have to keep some measure of doubt in there for now.
I have also heard, regardless of who the client is, that CryoPort will be controlling the entire process in this relationship. I have no idea as to how much of the 32 million shipments will eventually go through CryoPort, but I have "heard" (not confirmed by either company) that Quest would like move a large percentage of its shipping to the new shipping method if the pilot programs are successful. Now that might just be wishful thinking, but, if the other rumors out there on various sites and boards are accurate regarding the "million square foot European manufacturing facility", I would have to come to the conclusion that whatever the amount is, it is a LOT.
In my opinion, CryoPort is at the edge of something very big. There are not too many opportunities in an investor's lifetime to get into a company that can truly revolutionize an industry. Those types of opportunities are genuinely unique and make a difference in people's lives not just for a few years, but for generations to follow.
I think that we just might have one of those opportunities here with CryoPort.
DISCLOSURE: I worked with CryoPort from late 2004 thru August 2007. I assisted them in the process of becoming a public company in 2005 and I am pretty comfortable with the story. On my private equity side, both my clients, and myself personally, own stock in CryoPort and I also personally own some warrants. For the record, I am not consulting to them at this time and have not personally spoken with management about the status or operations of the company since the fall of 2007.
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