Now I don't typically put a lot of credence in what is posted on chat boards; however, a year or so ago I was made aware of a large manufacturing firm in the dry ice space that wanted a piece of the action over at CryoPort. At that time I heard that the manufacturing firm was willing to commit a million sq ft of floor space to ramp up the large scale production of the CryoPort Express One-Way Shipper.
Today on http://www.icecoldstocks.com/, the Iceman made a quick "whisper" comment during his "Dollar Man" podcast about possible news of a European manufacturer that was earmarking up to a million square feet to work with CryoPort. Now I don't know if it is the same manufacturing firm, I would bet that it is, and I don't know when the deal will become public, if there is one. But ... I do know that if a billion dollar manufacturing firm is dedicating a million square feet of their floorspace to support the CryoPort Express One-Way Shipper, they are not doing it for free and they expect to do A LOT of shippers. A million square feet is an enormous facility, which has a large carrying cost. If this "whisper" by the Iceman comes to fruition, I would expect things over at CryoPort to start picking up pace very rapidly.
Dollar Man Commentary: HERE (Audio: CYRX at the very end.)
Whisper Page: HERE (Text: CYRX is at the top.)
I really don't think that many investors have really put together a vision for their CYRX shares in regards to future valuation. Well, just take some very ballpark figures for example. There have been "rumors" on internet boards that FedEx ships over 300 million frozen packages on a global basis each year. If CryoPort were to ship 100 million shippers each year at an average of say, $80 per shipper (including shipping costs), they would do $8 billion (that's billion with a "B") in revenues. They would have to account for cost of manufacturing, shipping and corporate expenses. While I think they have better margins, let's assume that they can make 8% net profit based on the top end revenue line, they would make $640,000,000 in earnings. Currently, on a fully diluted and converted basis, they would have about 55-60 million shares outstanding.
You do the math.
DISCLOSURE: I worked with CryoPort from mid 2004 thru August 2007. I assisted them in becoming a public company and I am pretty comfortable with the story. On my private equity side, I own stock and warrants in CryoPort. I have not sold any stock to date and don't intend to sell any stock anywhere remotely close to the current price. I might look to sell a few shares over $10. For the record, I am not working with them in any capacity at this time.
