ViaCell Investment Perspective

ViaCell, fairly well-known in the umbilical cord blood field as a storage service, is posting better sales at ViaCord and there's every reason to believe that the cord blood storage industry is poised for a major boom. So, why do some analysts believe there's some cause for concern among ViaCell investors?

The answer is red ink and plenty of it. Operating and ret results are "mired" in red ink and at least one investor tipped off the Motley Fools about perceived management blunders.

Bad news, right? Well, not necessarily. The folks at Motley Fool eventually come down on the side of Via Cell. Here's an excerpt of their analysis:

Meanwhile, the firm has cut costs in an effort to accelerate its march to profitability. Losses for the quarter amounted to just $0.09 per share, half of last year's Q2 loss, and less than analysts predicted. Granted, most of the cost-cutting came in from a single one-time item: a "$2.2 million credit related to a reduction in contingent liabilities recorded with the acquisition of Kourion Therapeutics in 2003."

You can read the whole piece here.