1. CEO buying is a positive sign. 100lots = S$52,000, not a small amount to an individual.
2. Someone pointed out an interesting point in a post from Eratat thread: "Cordlife have not much track record. And the especially the booking of profits have to understand more details. It book it's profits ahead of service provided."
Rock, you are the expert on Cordlife and you seem to be vested. Do you know how Cordlife books profits? If a customer pays a lump sum for the next 18 years of cord blood banking, is that lump sum booked at one shot in the year's P&L statement?
Mummy,
I'm no expert in this company. What I believe is it's a recession proof business & no competition. (Just look at Vicom & Thomson medical)
See payment plan:
www.cordlife.com/sg/en/price-plan
How the company book in the revenue you can find out from the company.
Â
Thank you Rock. It's a v interesting high-Free Cash Flow business. If I get a chance to speak with the CEO , I will tell you all whether they book profit & revenue at one go, or they spread it out.
saying goes, Revenue is vanity, profit is sanity, cash flow is reality. while many companies guide dividends on %age of profits. reality is dividends are paid from cash flow not profits. paying 2 generous tranches of dividends so soon after ipo is a reality that one cannot deny.