Tasco/Bio-Matrix operates in a highly competitive industry characterized by several established local, regional and national companies with greater financial, management and marketing resources. For the last 15 years, commercial private cell banking (cord blood) has been available in the U.S.
Currently there are more than 23 cord blood banks operating in the U.S. with three companies (Cryo-Cell International, Inc.; Cord Blood Registry, and Viacell, Inc.) controlling 80% of the market share. In addition to the major players, there are several other smaller companies that are engaged in the same line of business as Tasco/Bio Matrix.
Many of these have already completed or implemented strategies that may enable them to establish a stronger position in this market. Additionally, the company believes that Mentor and Beckton Dickinson could provide competition to its medical line of disposable instruments. However, to date none of these companies have successfully either manufactured or distributed any disposable tissue management instruments. All three companies are primarily focused on reusable instrumentation for this industry.
However, reusable instruments run the risk associated with infectious disease transmission as well as damage to stem cells during the extraction process. On the other hand, Bio-Matrix’s disposable instrumentation results in higher cell yields and cell viability.
Valuation Model Used by Beacon Equity
Beacon Equity attempted to value the stock of the Tasco based on a price-to-sales model (P/S).
Since currently the company has significant exposure in the stem cell banking operations, Beacon Equity compared the market value of Tasco with other major operators in the industry including:
Cord Blood America (CBAI.OB); Regeneration Technologies (RTIX.OB) Geron Corporation (GERN), Viacell, Inc. (VIAC); Cryo-Cell International, Inc. (CCEL.OB); Thermogenisis Corp. (KOOL); StemCells, Inc. (STEM.OB); and Aastrom Biosciences, Inc. (ASTM).
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| Company | Price per Share | Market Cap In Millions | Price Share Multiple |
| Cord Blood America | 0.11 | 4.00 | 1.96 |
| Regeneration Technololgies | 6.00 | 179 | 2.37 |
| Geron Corp. | 6.15 | 405 | 65.83 |
| Viacell, Inc. | 4.04 | 156 | 3.51 |
| Cryo-Cell International, Inc | 2.22 | 26 | 1.79 |
| Thermogenisis Corp. | 3.94 | 216 | 21.24 |
| Stem Cells, Inc. | 2.31 | 180 | 871.65 |
| Aastrom Biosciences | 1.35 | 161 | 177.25 |
| � | � | � | � |
The average P/S multiple of the group stands at 16x (omi?ing StemCells, Inc. and Aastrom Biosciences, Inc. as they trade at exceptionally high multiples). Management expects to generate revenues of $5.03 million in the fiscal year 2007.
Applying a conservative P/S multiple of 15x on these estimates, the stock of Tasco Holdings (OTCBB: THII) would be fairly valued at $6.00 based on those number, which represents a significant appreciation possibility from current levels.About Tasco Holdings Inc. Tasco Holdings Inc. recently purchased Bio-Matrix Scientific Group Inc. (www.BMXGonline.com), a biotech research and development Company that commercializes medical devices and monitoring systems for the growing, worldwide stem cell research market. The Company aligns itself with strategic partners that offer key technologies in biomedical device development, tissue engineering, cell culturing, genome therapy and drug delivery systems to become a leading source for stem cell research technology and innovation and is building a state-of-the-art facility in San Diego, California, to cater to the growing stem cell research segment of the $75 billion biotechnology and medical device industry.
Source:
Beacon Equity Research – http://www.BeaconEquityResearch.com
Safe Harbor Provision: This press release may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements include “…will also allow us to expand the market for the Ginger Kelly Collection beyond North America, thereby greatly increasing shareholder value” and are based on the Company’s current expectations as to future events. However, the forward-looking events and circumstances discussed in this press release might not occur, and actual results could differ materially from those anticipated or implied in the forward-looking statements. Risk factors include, lack of inventory financing, foreign currency fluctuations, availability of product, uncertainty concerning market acceptance of its products, competition and other risk factors as outlined in the Company’s SEC filings.
Forward Looking Statement: The information in this news release includes certain forward-looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements to the future financial performance of the Company. Although the Company believes that the expectations reflected in its forward- looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, product development and acceptance, the impact of competitive services and pricing, or general economic risks and uncertainties.
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Tasco Holdings International:
Bio-Matrix Scientific Group Inc
David Koos, 619-398-3517