China Cord Blood Corp | $CO Stock | Shares Climb Up on Impressive Fiscal Q1 Earnings

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China Cord Blood Corporation (NYSE: CO)

 

China Cord Blood Corporation (CO), a Chinese umbilical cord blood storage and ancillary services company yesterday reported their fiscal first quarter 2018 financial results.

China Cord reported first quarter earnings of $10.2 million and adjusted first quarter earnings of $0.09 per share. CO reported first quarter revenues of $33.1 million.  

China Cord Blood Corporation CEO’s  Comments

“In the first quarter of fiscal 2018, we recorded 22,523 new subscribers, representing a year-over-year growth of 35.4%. The strong growth was mainly due to our ongoing efforts to enhance our sales team and the more effective and precise sales and marketing strategy. During this quarter, the majority of our new subscribers still came from the Guangdongmarket and the Beijing market performed steadily as expected.” said Ms. Ting Zheng, Chief Executive Officer of China Cord Blood Corporation.  “In the reporting period, the National Health and Family Planning Commission and five other ministries in Chinacollectively issued the “13th Five-Year Plan – A Specific Program for Health and Health Science and Technology Innovation”3, which signals their full support to the stem cell and regenerative medicine industry and provided clarity on regulations for the clinical applications of biotherapies.  At the same time, the China Maternal and Child Health Association formed its Umbilical Cord Blood Application Committee in Beijing. We believe such developments will be beneficial to the long-term development of the PRC cord blood banking industry.  In the near term, we will continue to explore various sales and marketing tactics to improve demand and expand revenue sources to offset the negative impact of low consumer sentiment and few newborns in certain regions of the PRC.” PR Newswire

CO Technical Analysis

CO opened trading yesterday at $12.31 which was exactly the same as the previous day’s trading close. CO closed trading yesterday at $12.49 and spiked up after market to $14.34, equivalent to a 15% increase from the closing price. Taking a look at the daily chart we can see that we are in unchartered territory as with the spike up CO is now trading at all time highs.

Taking a closer look at the daily chart we can see that before the spike up CO had already been in an overall upward trend dating back to March 21st when it traded at $5.63. CO has a float of 31.91 million shares and traded below the normal daily trading volume on Wednesday.

For trading purposes, I would like to see CO open trading on Thursday above $13.75 and if it does I would be looking to take a long position at the bell. My stop order would be $0.20 from my entry position fearing anything more than that and the stock would start to fill in the gap up.

Company Profile

China Cord Blood Corporation, together with its subsidiaries, provides umbilical cord blood storage and ancillary services in the People’s Republic of China. The company offers cord blood testing, processing, and storage services under the direction of subscribers; and tests, processes, and stores donated cord blood, as well as provides matching services.

As of March 31, 2017, it had three operating cord blood banks in the Beijing municipality, the Guangdong province, and the Zhejiang province. The company is based in Central, Hong Kong.  PR Newswire

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