For those who missed QuickDraw's interview of CEO
Post# of 7769
Posted On: 06/10/2014 11:30:51 PM
For those who missed QuickDraw's interview of CEO Bob Schneiderman, which occurred on June 6, 2014, here's a link to the recording: https://m.youtube.com/watch?feature=youtu.be&...IkEZpd58-4
There were numnerous good points raised during the interview that are worth repeating:
First, I must admit that I was wrong about the convertibledebt debate. Of course, I was not the only one with an incorrect opinion on this subject, and it appears my "unfriendly" v. "friendly" opinion was more correct. Bob clearly stated that no new toxic debt has been written since his birthday, October 22, 2013. Bob clarified the Q1 report disclsoure. Specifically, the "additional convertible debt" disclosed in the Q1 report was merely the renewed and extended debt held by three individuals, two of his closests friends and his wife! So for all the venom directed at Bob on his alleged broken promise, you have once again been proved wrong.
I enjoyed hearing how he plans to develop SCRC's interest in WholesaleRx and PIMD to become a mini-McKesson (Bob's words, by the way). It is clear to me that this part of the business will grow and become what I have been expecting, though it is taking a bit longer than anticipated.
Bob is still psyched about RapiMeds, especially the China opportunity. And after RapiMeds "gets going", he believes it and the specialty pharmacy business will "go neck-and-neck". Importantly, Bob mentioned the company is developing additional RapiMeds vitamin products, which he expects to launch in Asia after the launch of the Children's acetaminophen-based product. Frankly, it was easy to read from the tone of Bob's voice as he discussed the RapiMeds opportunity in China due to that market's need for U.S.-made products, the focused concern for children in China, and the new RapiMed product in development, that he clearly believes RapiMeds revenues will eventually become the company's revenue leader. But this is just my opinion, and the specialty pharmacy business clearly has an enormous lead at this time.
Bob reported there is no capacity limitataions with the current RapiMeds manufacturer, which currently manufactures products for the worlds largests pharmacy retailers. He also structured a profitable financial model in which the company is paid within 30 days of product delivery to the distributor, which eliminates unrecoverable payables issues and increases the profit margins, as the distributors and retailers are solely responsible for all marketing and selling expensesin their respective markets. Hopefully, our distributors can generate a strong interest and demand for RapiMed products and, thus, significantly increase orders and sales of RapiMeds there.
On to the specialty pharmacy business, which Bob described as Scrips's "crown jewel". In response to QuickDraw's question about whether the recently reported revenues of $1.6 million are sustainable, Bob said, "it is just getting started." He said the company is adding more staff to handle what I believe to be even more Rx orders and, equally important, that the company is working on compounding pharmacy endeavors outside the sphere of Main Ave Pharmacy. So it appears that the crown jewel of SCRC will be adding many more jewels to its crown in the months ahead. And similar to the RapiMeds financial model, the specialty pharmacy business is also set up on a 30-day payment period and they have no collections problems.
Bob said he would be happy to do a follow up interview in a few months, "hopefully, things will be double what they are now."
Bob also addressed a question about the PIPE deal, and explained that his SEC counsel advised him an 8K was not warranted because these were separate, small private subscription deals, each of which did not reach a material amount requiring an 8K. Regardless, the PIPE deals were disclosed in the 10K and again in the 10Q. The shares issued in exhcange for the financing obtained in private subscription agreements were restricted, which was not disclosed in the financial reports. Bob said the money obtained from these deals, which was needed to fund payments on the PIMD, WholesaleRx, and Main Ave Pharma deals, as well as for RapiMeds R&D, originated from solid investors (e.g. friends and family). Bob said the the company has a good relationship with these investors. And in my opinion, he implied these PIPE shares will not be dumped on the market as soon as they unlock (contrary to opinions expressed on this board on numerous occassions).
At the end of the interview, Bob added that Scrips "probably has the most loyal shareholders," and he welcomes calls from anyone, including people interested in investing in SCRC. If he can answer a caller's question he will, if he cannot, he will openly say so. I enjoyed hearing his invitation to the listeners who are watching the company and still sitting on the fence: "Come on board and enjoy the ride!" His goal is to make the shareholders happy, which will require higher revenues, profitability, growth, and ultimately growing the share price. As a longterm shareholder, I look forward to the ride.
Bsav88atty (I was not paid for this post, nor have I ever been paid for any post on any stock message board)
There were numnerous good points raised during the interview that are worth repeating:
First, I must admit that I was wrong about the convertibledebt debate. Of course, I was not the only one with an incorrect opinion on this subject, and it appears my "unfriendly" v. "friendly" opinion was more correct. Bob clearly stated that no new toxic debt has been written since his birthday, October 22, 2013. Bob clarified the Q1 report disclsoure. Specifically, the "additional convertible debt" disclosed in the Q1 report was merely the renewed and extended debt held by three individuals, two of his closests friends and his wife! So for all the venom directed at Bob on his alleged broken promise, you have once again been proved wrong.
I enjoyed hearing how he plans to develop SCRC's interest in WholesaleRx and PIMD to become a mini-McKesson (Bob's words, by the way). It is clear to me that this part of the business will grow and become what I have been expecting, though it is taking a bit longer than anticipated.
Bob is still psyched about RapiMeds, especially the China opportunity. And after RapiMeds "gets going", he believes it and the specialty pharmacy business will "go neck-and-neck". Importantly, Bob mentioned the company is developing additional RapiMeds vitamin products, which he expects to launch in Asia after the launch of the Children's acetaminophen-based product. Frankly, it was easy to read from the tone of Bob's voice as he discussed the RapiMeds opportunity in China due to that market's need for U.S.-made products, the focused concern for children in China, and the new RapiMed product in development, that he clearly believes RapiMeds revenues will eventually become the company's revenue leader. But this is just my opinion, and the specialty pharmacy business clearly has an enormous lead at this time.
Bob reported there is no capacity limitataions with the current RapiMeds manufacturer, which currently manufactures products for the worlds largests pharmacy retailers. He also structured a profitable financial model in which the company is paid within 30 days of product delivery to the distributor, which eliminates unrecoverable payables issues and increases the profit margins, as the distributors and retailers are solely responsible for all marketing and selling expensesin their respective markets. Hopefully, our distributors can generate a strong interest and demand for RapiMed products and, thus, significantly increase orders and sales of RapiMeds there.
On to the specialty pharmacy business, which Bob described as Scrips's "crown jewel". In response to QuickDraw's question about whether the recently reported revenues of $1.6 million are sustainable, Bob said, "it is just getting started." He said the company is adding more staff to handle what I believe to be even more Rx orders and, equally important, that the company is working on compounding pharmacy endeavors outside the sphere of Main Ave Pharmacy. So it appears that the crown jewel of SCRC will be adding many more jewels to its crown in the months ahead. And similar to the RapiMeds financial model, the specialty pharmacy business is also set up on a 30-day payment period and they have no collections problems.
Bob said he would be happy to do a follow up interview in a few months, "hopefully, things will be double what they are now."
Bob also addressed a question about the PIPE deal, and explained that his SEC counsel advised him an 8K was not warranted because these were separate, small private subscription deals, each of which did not reach a material amount requiring an 8K. Regardless, the PIPE deals were disclosed in the 10K and again in the 10Q. The shares issued in exhcange for the financing obtained in private subscription agreements were restricted, which was not disclosed in the financial reports. Bob said the money obtained from these deals, which was needed to fund payments on the PIMD, WholesaleRx, and Main Ave Pharma deals, as well as for RapiMeds R&D, originated from solid investors (e.g. friends and family). Bob said the the company has a good relationship with these investors. And in my opinion, he implied these PIPE shares will not be dumped on the market as soon as they unlock (contrary to opinions expressed on this board on numerous occassions).
At the end of the interview, Bob added that Scrips "probably has the most loyal shareholders," and he welcomes calls from anyone, including people interested in investing in SCRC. If he can answer a caller's question he will, if he cannot, he will openly say so. I enjoyed hearing his invitation to the listeners who are watching the company and still sitting on the fence: "Come on board and enjoy the ride!" His goal is to make the shareholders happy, which will require higher revenues, profitability, growth, and ultimately growing the share price. As a longterm shareholder, I look forward to the ride.
Bsav88atty (I was not paid for this post, nor have I ever been paid for any post on any stock message board)
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