ARMEN CONVERSATION II (INSTATRADER Dec 30, 2015)
786 657 2060...Called me back from 305 919 7399
I spoke to ARMEN yesterday ---
GENERAL SUMMARY
1. THEY WILL NOW PR to IHUB - so... increasing visibility to investors!!!
2. They are on the hunt for acquisitions - so... definite possibility of discontinuous growth in revenue/profits/value...stock value
3. Shareholder letter looks like next week - so... we'll get some confirmations and status updates, and some more/recent detail on the growth & expansion plans
4. Attorney letter to OTC submitted last week - so... you may want to take a picture of that yield sign so you don't forget what it looked like
5. No dilution since last financials - so... doubters can eat their hearts out
6. No debt since last financials (no debt, period) - so... doubters can eat each other's hearts out
7. No dilution going on now, and none coming - so... hold on tight to your shares, MM's are going to be starving hungry
8. Financing for growth/acquisitions: already have private $ lined up when they want it - so... no toxic debt in the future]
BELOW IS THE Q+A FROM THE CALL:
Q: Are investors going to get a Letter To Shareholders this year?
A: "Yes ofcourse, I expect it out by next week. It will go over our expectations for 2016 just as we did last year for 2015".
Q: One of the main points of contention I get from other investors is the lack of the Attorney Letter. Can you comment on that?
A: "We submitted the attorney letter last week, just waiting for a response from OTC".
Q: There have been 2 recent new revenue streams announced. Have they come online? 340B and MTM specifically.
A: "The MTM revenues have come online, next step in the process is becoming the single source for all of a patients' scripts. Consolidating them if you will". 340B revenue should begin in January. It took a long time to get all the systems in place which must be set up before the process can begin. This first contract is a test for us - that we will look to expand upon to other providers if successful".
Q: We had great revenue in November, but I noticed a dropoff in scripts for the month. Why is that?
A: "November is always a month that has large turnover due to Medicare/aid enrollment periods. It is quite normal. Each script was a higher dollar amount, and as we continue the year the number of scripts will resume again".
Q: In regards to M&A... would you say you are looking for anything specific?
A: "We are currently on the hunt for acquisitions mainly on the east coast. Weve looked at companies in Atlanta and South Carolina, and interested in the right situation up to NY as well".
Q: What are you looking for from a potential acquisition?
A: "We are not looking at your traditional pharmacies, in fact we do not consider ourself a traditional pharmacy, more like a health services company. We are looking at pharmacies with specialty licenses with niche practices. A high script count is more important than the revenue, as well as the TYPE of scripts. If they are doing lots of long term care and infectious disease scripts we are interested".
Q: You mentioned you do not consider PHARMCO a traditional pharmacy...Is there a company out there that you would say PHARMCO resembles?
A: We are very much like HUMANA, yet I believe we run our business much better. HUMANA is a company that we are beginning to take area market share from.
Q: A previous PR stated we were expanding our presence into PALM BEACH COUNTY. Can you describe what that entails?
A: "We have noticed that many of our private doctor practices in the area are not having many of their needs met, and were initially asked to service a few. We see lots of opportunity there so we are looking to expand the relationships".
Q: You recently had positive feedback from the NON DEAL ROADSHOW in NYC. Does that mean we are no longer looking at 3(a)(10) transaction type funding anymore?
A: "Yes, we met some great people there who are very interested in our turn-around story. There is private money available to us for acquisitions when the time is right".
Q: Any possible traditional bank financing?
A: "We are not there yet. Banks want us to show them 2 consecutive years of positive cash flow and earnings. We are not at 2 years just yet".
Q: I am of the opinion that literally nobody knows whats going on here with this company. Is there a reason why you do not get your PR's out to all media possible? I mean IHUB for instance is one of the largest communities for people who trade stocks under $1. They charge $100. I think its worth the investment.
A: "I thought the OTC got the PR's out to all the investors. I will make sure I get the news out on IHUB I will look into that indeed".
SO NOW WHAT DOES IT ALL MEAN?
Many investors in the OTC have some doubts that creep in from time to time. Problem is many of the lingering doubts are unable to be swayed because the companies here do not communicate directly with shareholders.
We can see here clearly...AND I ENCOURAGE ALL TO CALL AND VERIFY, that this company truly is different.
The management team here is singularly focused on operations, not necessarily share price and awareness. Thats great for smart investors who can still find that diamond in the rough. Now we can expect more to see the light as IHUB PR's should become part of the cycle. That is a big deal to me.
The attorney letter has been a thorn in much of our sides for a long time. When I spoke to him last time he said it had not been done yet, and now it is! Compounding that for me is the fact that what he told me in our previous conversation came true, or is still in process. BIG DEAL again.
Dilution can safely be expected to be over as the TARPON transaction is closed, and private money is available when needed. BIG DEAL again.
New revenue streams and systems are now in place. Both have higher margins. BIG DEAL again
We have narrowed down just how this company sees itself today (non traditional pharmacy) as well as what the company is looking at as a model of the future (HUMANA). No more theorizing on CVS/WALGREENS competition etc..BIG DEAL again
We get a better feel of just what a line item on a shareholders letter means with regards to M&A (this company is clearly looking to go national, and is actively looking to do so today) This company does not have a short term goal of being acquired...They have bigger plans...BIG DEAL again...
Dilution is over, and the YIELD sign is soon to be a thing of the past.......
Get ready for a great Q1 and on to 2016!
786 657 2060...Called me back from 305 919 7399
I spoke to ARMEN yesterday ---
GENERAL SUMMARY
1. THEY WILL NOW PR to IHUB - so... increasing visibility to investors!!!
2. They are on the hunt for acquisitions - so... definite possibility of discontinuous growth in revenue/profits/value...stock value
3. Shareholder letter looks like next week - so... we'll get some confirmations and status updates, and some more/recent detail on the growth & expansion plans
4. Attorney letter to OTC submitted last week - so... you may want to take a picture of that yield sign so you don't forget what it looked like
5. No dilution since last financials - so... doubters can eat their hearts out
6. No debt since last financials (no debt, period) - so... doubters can eat each other's hearts out
7. No dilution going on now, and none coming - so... hold on tight to your shares, MM's are going to be starving hungry
8. Financing for growth/acquisitions: already have private $ lined up when they want it - so... no toxic debt in the future]
BELOW IS THE Q+A FROM THE CALL:
Q: Are investors going to get a Letter To Shareholders this year?
A: "Yes ofcourse, I expect it out by next week. It will go over our expectations for 2016 just as we did last year for 2015".
Q: One of the main points of contention I get from other investors is the lack of the Attorney Letter. Can you comment on that?
A: "We submitted the attorney letter last week, just waiting for a response from OTC".
Q: There have been 2 recent new revenue streams announced. Have they come online? 340B and MTM specifically.
A: "The MTM revenues have come online, next step in the process is becoming the single source for all of a patients' scripts. Consolidating them if you will". 340B revenue should begin in January. It took a long time to get all the systems in place which must be set up before the process can begin. This first contract is a test for us - that we will look to expand upon to other providers if successful".
Q: We had great revenue in November, but I noticed a dropoff in scripts for the month. Why is that?
A: "November is always a month that has large turnover due to Medicare/aid enrollment periods. It is quite normal. Each script was a higher dollar amount, and as we continue the year the number of scripts will resume again".
Q: In regards to M&A... would you say you are looking for anything specific?
A: "We are currently on the hunt for acquisitions mainly on the east coast. Weve looked at companies in Atlanta and South Carolina, and interested in the right situation up to NY as well".
Q: What are you looking for from a potential acquisition?
A: "We are not looking at your traditional pharmacies, in fact we do not consider ourself a traditional pharmacy, more like a health services company. We are looking at pharmacies with specialty licenses with niche practices. A high script count is more important than the revenue, as well as the TYPE of scripts. If they are doing lots of long term care and infectious disease scripts we are interested".
Q: You mentioned you do not consider PHARMCO a traditional pharmacy...Is there a company out there that you would say PHARMCO resembles?
A: We are very much like HUMANA, yet I believe we run our business much better. HUMANA is a company that we are beginning to take area market share from.
Q: A previous PR stated we were expanding our presence into PALM BEACH COUNTY. Can you describe what that entails?
A: "We have noticed that many of our private doctor practices in the area are not having many of their needs met, and were initially asked to service a few. We see lots of opportunity there so we are looking to expand the relationships".
Q: You recently had positive feedback from the NON DEAL ROADSHOW in NYC. Does that mean we are no longer looking at 3(a)(10) transaction type funding anymore?
A: "Yes, we met some great people there who are very interested in our turn-around story. There is private money available to us for acquisitions when the time is right".
Q: Any possible traditional bank financing?
A: "We are not there yet. Banks want us to show them 2 consecutive years of positive cash flow and earnings. We are not at 2 years just yet".
Q: I am of the opinion that literally nobody knows whats going on here with this company. Is there a reason why you do not get your PR's out to all media possible? I mean IHUB for instance is one of the largest communities for people who trade stocks under $1. They charge $100. I think its worth the investment.
A: "I thought the OTC got the PR's out to all the investors. I will make sure I get the news out on IHUB I will look into that indeed".
SO NOW WHAT DOES IT ALL MEAN?
Many investors in the OTC have some doubts that creep in from time to time. Problem is many of the lingering doubts are unable to be swayed because the companies here do not communicate directly with shareholders.
We can see here clearly...AND I ENCOURAGE ALL TO CALL AND VERIFY, that this company truly is different.
The management team here is singularly focused on operations, not necessarily share price and awareness. Thats great for smart investors who can still find that diamond in the rough. Now we can expect more to see the light as IHUB PR's should become part of the cycle. That is a big deal to me.
The attorney letter has been a thorn in much of our sides for a long time. When I spoke to him last time he said it had not been done yet, and now it is! Compounding that for me is the fact that what he told me in our previous conversation came true, or is still in process. BIG DEAL again.
Dilution can safely be expected to be over as the TARPON transaction is closed, and private money is available when needed. BIG DEAL again.
New revenue streams and systems are now in place. Both have higher margins. BIG DEAL again
We have narrowed down just how this company sees itself today (non traditional pharmacy) as well as what the company is looking at as a model of the future (HUMANA). No more theorizing on CVS/WALGREENS competition etc..BIG DEAL again
We get a better feel of just what a line item on a shareholders letter means with regards to M&A (this company is clearly looking to go national, and is actively looking to do so today) This company does not have a short term goal of being acquired...They have bigger plans...BIG DEAL again...
Dilution is over, and the YIELD sign is soon to be a thing of the past.......
Get ready for a great Q1 and on to 2016!
