Yes, May revenues will likely be above $1 million.
Post# of 7769
Posted On: 05/29/2014 9:34:09 PM
Yes, May revenues will likely be above $1 million. That will be great. And I believe Scrips is heading in the right direction.
But the market is already expecting big revenues. In my humble opinion, what must happen to move this stock higher is profitability. Multimillions in revenues from the government contract did nothing to move the stock price because the margins were tiny. The big Wholesale Rx revenues did nothing to move the stock price, as we receive only a small percentage of the gross margins. With just the WRx and government contract revenues, SCRC would have another year of multimillions in losses.
Multimillions in revenues from the specialty pharmacy business, however, will move the stock price, as the margins associated with these products are supposed to be very, very high. The market is in "show me" mode now and it needs to see the company is turning those revenues into profits, it needs to see eps growth. Growing revenues are fueling the rocket, but profits and eps growth are needed to ignite this rocket for liftoff. And as the company demonstrates accelerated eps growth for two to three quarters, the rocket will accelerate higher than any of us can reasonably imagine.
But the market is already expecting big revenues. In my humble opinion, what must happen to move this stock higher is profitability. Multimillions in revenues from the government contract did nothing to move the stock price because the margins were tiny. The big Wholesale Rx revenues did nothing to move the stock price, as we receive only a small percentage of the gross margins. With just the WRx and government contract revenues, SCRC would have another year of multimillions in losses.
Multimillions in revenues from the specialty pharmacy business, however, will move the stock price, as the margins associated with these products are supposed to be very, very high. The market is in "show me" mode now and it needs to see the company is turning those revenues into profits, it needs to see eps growth. Growing revenues are fueling the rocket, but profits and eps growth are needed to ignite this rocket for liftoff. And as the company demonstrates accelerated eps growth for two to three quarters, the rocket will accelerate higher than any of us can reasonably imagine.
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