Cardica Inc. Message Board

best option for shareholder would be if Cardica can get enough financing to get another 16 months assuming they wont be profitable. The 10k mentions that due to the low volume predicted in the near term sales of exchange 30 COGS would be high and may not be profitable..in a market that has 80%GM I think they should be able to make some operating cash flow...prob over conservative verbage of the 10k.....i think it would be difficult not to be profitable once they get past the 100k unit mark....most component costs flatline at around the 200k annual volume mark.and even at 100k are close to reaching good economies of scale.....financing one more year would best option.....no dilution and in a better position to negotiate sale............I am not sure what they could get for the sle of the CABG devices but that would be even better if they could get 20 to 25 million for that IP....I know its their baby but it will be a long while before that ever gains traction and they are not in position to sit on it...they have to consider the timing of patent expiration and when those CABG davinci procedures will ever go mainstream.

Sentiment: Buy

True re: partnership, but you also got to look at bargaining position. Cardica has very little leverage at this point, and if you don't come into a negotiation in a position of strength, you're likely to get shafted. They may have to give away the farm in a partnership, and for that they just might as well sell the company for $50M or some other asinine figure and be done with it. And since the price has fallen so far so fast, only buyers (probably MMs) in the last few trading days would come out with much profit in either case.