This column is for investors willing to take more risk and potentially receive more reward.  The stocks mentioned in this column are not recommended to buy or sell.  They're brought to your attention so you can investigate them further to determine if they fit your risk profile.  Most of the stocks will have less than $1 billion of market capitalization, have more volatility than other stocks, and oftentimes no earnings.  And some will have tremendous stories.

June 2, 2008 - Cyrolife Inc. (CRY-NYSE) preserves lives, as well as the cardiovascular tissues that keep life going. The company takes human heart valves and blood vessels from deceased volunteer donors, processes them, and stores them in liquid nitrogen freezers (a process called cryopreservation). It then ships them to surgeons, who implant them in cardiac and vascular repair procedures. For some preserved tissue, the company uses its proprietary SynerGraft technology, which reduces the presence of donor cells and makes the tissue more compatible with the recipient. In addition to its tissue preservation operations, CryoLife develops implantable biomaterials, including BioGlue, an adhesive used to seal internal surgical wounds.

If you're looking for some action, CRY will give it to you. In 2001, it crested at $44.60 a share (data reflects 3 for 2 split in 2001). In 2002, it slammed the bottom at $1.40. If this doesn't cry out for aggressive investors, no stock does.

The ride hasn't been straight up since 2002 either. The stock went to $11 in 2003, them back to $4.40, dropping to $2.90 in 2006 and last year, hit $15.20 before touching the $6.20 level. Now it's back to $11. Can it go higher? Here's what we've got.

Analysts are predicting earning growth of 30% a year, on average, over the next 5 years. That beats the 13.89% predicted for the Health Service Industry and the 10.3% forecast for the Healthcare sector as well as the 19.28% analysts think the S&P 500 will grow in the same time period. Last year, earnings per share (eps) were 27 cents, well above the negative 2 cents from 2006 and the negative 36 cents eps of 2005. This year, predictions are for 40 cents and 55 cents next year.

The most recently reported quarter saw earnings up 100% from the same quarter last year while sales improved by 5%. Cardiac and vascular tissue processing sales went up 18% because of higher demand and some price increases. Its patented BioGlue saw sales grow by 6% to almost $12 million. Operating margins improved because of better product mix and some fee increases. The FDA recently approved the SynerGraft pulmonary heart valve which should improve the top and bottom lines this year.

Expenses were higher due to elevated spending for research on SynerGraft products and tissues, protein hydrogel technologies, and research of cold storage and preservation of organs.

More numbers: Return on equity was 11.5% last year, up from 7% in 2006. This year analysts see 17% and 19% next year. Net profit margin was 7.2% last year, up from .4% the prior year. This year look for 11.4% and 13.3% next year. Total revenues were $95 million in 2007, up from $81 million in 2006. This year, expect $105 million and $120 million next.

Cryolife will see earnings and revenue growth. It will also increase R&D expenses as new products are essential to its prosperity. This is a stock that will continue to show volatility as it hits and misses earnings targets. But if it hits a lot more than it misses, investors will come back to it with renewed faith.

Company Web site: www.cryolife.com

- Ted Allrich