I do not mind holding CRY. Because, I can sleep well at night with holding CRY. No debt, conservative CEO (your favorite Mr.Anderson,hahaha) and plenty of cash and a moat (you mentioned low margin with tissue valve which would be the reason it would be hard to survive for others). If it dips around 5.70, I will buy more, i feel very comfortable, that i will not lose money, will keep stock piling.
This entire Medafor situation has been a fiasco for CryoLife.
Sure CryoLife is much bigger than Medafor, but they still are a damn small company themselves and THEY can not really afford this dispute. CryoLife is spending several millions of dollars in legal fees annually on its suit with almost no progress to date. The hostile takeover of Medafor failed and ended up with CryoLife spending $5,000,000 for Medafor stock which is illiquid and they can’t sell. Now Medafor has stopped supplying product to CryoLife. If CryoLife gets an injunction from the court they are back to square one; if CryoLife doesn’t get the injunction they are in a whale of a hurt and they will lose ALL of their Hemostase sales. Sure they will sue for damages; even IF they win they will collect many years from now.
CryoLife thought that they could easily “roll” Medafor and take over all of the IP rights to the product. They miscalculated the resistance of Medafor and they are paying a huge price for their mistake.
CryoLife should either live with Medafor in a reasonable manner without lawsuits or just move on and work with their own BioGlue and some other Hemostatic process. If the Medafor product is actually a good product why not work with Medafor? If the Medafor product isn’t that great and profitable product why all the ridiculous expense of lawsuits and takeovers?