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CryoLife Inc. Message Board

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  • dlhild@ymail.com dlhild Jan 13, 2010 10:18 PM Flag

    This is great news. A great addition

    I own shares of both companies. In my view Medafor management is doing just fine. They have grown sales at 60% a year for the past 3 years. The next 3 years look great too. On the other hand, what was CRY's sales growth rate over this period...perhaps 10% a year...? Think about what this metric does over time. Now ask yourself which company is better managed.

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    • symbol please? thnx

      • 1 Reply to stoxman4
      • dlhild@ymail.com dlhild Jan 14, 2010 10:42 AM Flag

        Private companies have no symbol. Shareholders of private companies get the information that they are entitled to by law. This includes periodic financial information. CRY is a public company. Much of their information is available online. I take information from both sources, apply a little math, and try to figure things out.

        I have no problem selling my shares to CRY, assuming the price and terms would be satisfactory. In my view though, I think Medafor shares are worth considerably more than more than $2/share.

        Let me give you an example. Assume Medafor shares today are fairly valued at $3/share. Medafor revenues have been growing about 60%/year for the past 3 years. It looks like this growth can continue for the next 3 years as well. This means that if Medafor operates its business model the stock would double in value every 18-20 months. This is because revenues would double every 18-20 months, as would net income, as would stock value. That means $3/share today becomes $6/share in 18-20 months, and $12/share in roughly 36-40 months. That is simply put, but that is pretty much the story too.

        I think something else is the case too. If CRY were to acquire Medafor, the combined company would have a much faster rate of revenue growth. Because of the high HemoStase gross/net margins, the combined company revenue multiplier would probably double overnight. This would likely result in the new CRY stock probably doubling over a short period of time.

 
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17.57+0.16(+0.92%)Sep 30 4:02 PMEDT