OK CRDC is speculative, far more so than JNJ but less so than BAC or CIT, for example BAC went from 50 to 3, not a winning investment if you were on the wrong side as a long. CIT is 60 to zero toast (but there was easy money in both to be made on the bounce). BSX is another example 40 bucks down to 6 and today they still struggle.

So OK, CRDC has great product, fought the patent fight and won, did not get CMS/Medicare to buy off on the product innovation (to specify the procurement of the part as a reimbursable search www.cms.hhsDOTgov , so pass-port and C-port have to stand on their own merits. Those products are in the black on a sales over expense basis. This is good and has been easy to see for about a year. CMS wants a bigger study base, once that it tendered and if accepted then cport and passport become reimbursable supplies under Medicare. That day is the grabbing of the Golden Fleece, Brass Ring, etc.

The R&D pipline is important, if the micro cutter/stapler is indeed as revolutionary as claimed then another product on the market and by that time one would hope the adoption of c-port and pass-port would be better

Owners/big holders are no dummies. If market value was at 10x then they could have launched 12m shelf offering and have 5 years of ops in the bank. As it stands they took a conservative view not to over-dilute the stock and the markets, in technical jargon, are glibbery-glooping their way along. Oil is up, transports are up, cargo volumes are up, money is flowing – I see it every day in my end of IT&T and even with the seasonal slow-period, things are moving.

Meantime the CRDC key employees/directors are taking 7 year deferment on options for current compensation bonus, which means these guys have a great view of the long term and feel that exercising their options in 15' or 16' is a risk worth taking.

I think you have to read not only between the lines, but the lines themselves. These guys, if in fact the stock rockets, will become overnight multi millionaires at option time. I have seldom seen such transparent tactics and CDRC speaks in very plain language. The plan is not new, it is tried and true and was how the dot-coms made it to market and then the tech guys cashed out. It rewards performance and stamina by installing a vested interest.

Fundamentally I would rather have them dilute my position slightly than borrow money from a bank in almost any climate, particularly this one. I fully expect another shelf offering of the same share volume in 12 months. Risk, you bet there is, there is also the potential for massive expansion and profit. A long position with 4 x 2-1 splits on 15k worth of shares in today’s money is 10 million in 2020. Of course it could go to zero too..

Do as you will and do your homework. I am accumulating within the bounds of my risk structure and continue to be optimistic.

I knew an old guy who put his life savings of 5k in a fly by night outfit called Texas Instruments. That puppy worked out pretty darn well for him and I think this one will too.