Celts and all the Core - The company's current fu
Post# of 7769
Posted On: 05/05/2014 7:41:26 PM
Re: celtics2014 #2916
Celts and all the Core - The company's current fundamentals are so much better than they've ever been, and it is insane that people are blindly selling at these low levels. Even with the completely misguided margin opinion of 19.5%, this stock is worth more than double today's closing price.
Of course, anyone who can read and understand business understands the margins are significantly higher than 19.5%. If you have not read the agreement, shame on you. Please read it at least three times; everything is there.
Eventually, I will post the details of the agreement based on my analysis of the Business Management Agreement. In the meantime, before I hop on another flight to São Paulo, I will leave everyone with the three breadcrumbs below to give a hint about my thoughts on the $125K in Q1 from Main Ave, much more of my analysis with boring details to follow soon:
(1) pharmacy's revenue recognition (e.g., based on orders shipped and invoiced or payment received? My educated guess is the former.);
(2) lag time between revenue recognition and receipt of payment;
(3) payment to Scrips for cash received by pharmacy for preceding month (minus expenses and Implex's draw).
Everything but my revenue recognition opinion is all there in that simple, little agreement.
One last nugget, it's all about filling the pipeline. Do not expect third-party payers to pay immediately upon product delivery to the patient. This is a process that requires filling the pipeline. But once the pipeline is full and the shipments continue to flow, so to will the money. I suspect that with a February 20 start date, the pipeline is quickly starting to fill. The rocket had already launched, the market just hasn't noticed.
Good luck my fellow SCRC investors!
BSAV (not a paid promoter)
Of course, anyone who can read and understand business understands the margins are significantly higher than 19.5%. If you have not read the agreement, shame on you. Please read it at least three times; everything is there.
Eventually, I will post the details of the agreement based on my analysis of the Business Management Agreement. In the meantime, before I hop on another flight to São Paulo, I will leave everyone with the three breadcrumbs below to give a hint about my thoughts on the $125K in Q1 from Main Ave, much more of my analysis with boring details to follow soon:
(1) pharmacy's revenue recognition (e.g., based on orders shipped and invoiced or payment received? My educated guess is the former.);
(2) lag time between revenue recognition and receipt of payment;
(3) payment to Scrips for cash received by pharmacy for preceding month (minus expenses and Implex's draw).
Everything but my revenue recognition opinion is all there in that simple, little agreement.
One last nugget, it's all about filling the pipeline. Do not expect third-party payers to pay immediately upon product delivery to the patient. This is a process that requires filling the pipeline. But once the pipeline is full and the shipments continue to flow, so to will the money. I suspect that with a February 20 start date, the pipeline is quickly starting to fill. The rocket had already launched, the market just hasn't noticed.
Good luck my fellow SCRC investors!
BSAV (not a paid promoter)
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