Article on ScripsAmerica! Go SCRC! Tut http://w
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Posted On: 12/18/2014 5:15:37 PM
Article on ScripsAmerica! Go SCRC! Tut
http://www.hotstocked.com/article/88816/scrip...l#comments
The OTC Markets is an interesting and diverse place. Some of the companies listed there are solid operating entities and their stocks tend to be relatively stable. The rest of the penny stock enterprises, however, are still deep in the development stage and are losing quite a lot of money every quarter. Their tickers, in turn, are prone to volatile swings. So, where does ScripsAmerica, Inc. (OTCMKTS:SCRC, SCRC message board) stand?
Somewhere in the middle, apparently.
On the one hand, you've got the 10-Q for the third quarter of 2014, and it must be said that the figures in it might surprise quite a lot of people. Here's what we mean:
cash: $1.2 million
current assets: $6.4 million
current liabilities: $4.6 million
quarterly revenues: $12.8 million
quarterly net income: $1.5 million
The statement is, without a shadow of a doubt, quite solid. The balance sheet clearly shows that SCRC is in a healthy financial position, and while there are other OTC companies that register impressive revenues, few of them can brag about a seven-figure net income.
So, the business is progressing nicely, but unfortunately, the same can not be said about the stock. Indeed, SCRC registered two green sessions on Monday and Tuesday during which it managed to gain more than 30%. Even so, the ticker is now sitting at just over $0.14 per share and that, you have to agree is miles away from the 52-week high of $0.21 registered back in February. So, let's take a closer look and see what's holding SCRC back.
About a year ago, the company's revenues were coming primarily from pharmaceutical distribution services delivered to companies like McKesson Corporation (NYSE:MCK). Unfortunately, the margins started to shrink and the management team decided to steer the company into a different direction. They said that they will focus both on getting the RapiMed products off the ground, and on entering the specialty pharmacy market.
The pharmacy part of their business seems to be going well. The company recently acquired the last portion of the outstanding stock of Main Avenue Pharmacy Inc. which means that 100% of Main Avenue's revenues and profits are now coming into SCRC's bank account.
Unfortunately, things are not coming along quite as smoothly when it comes to the RapiMed products. Indeed, the pediatric pain reliever and fever reducer is now being sold in several countries outside the US and SCRC is making revenues out of it. The latest 10-Q, however, informs us that it won't be available in the States before the start of 2016, and we can see that some investors are not particularly happy about the delay.
They also seem quite baffled by the latest press release. SCRC say in their report that the cash flow should be sufficient to support the company's operations, but last week they established a $4 million line of credit which might suggest that their initial estimates weren't completely correct.
Fortunately, the debt is not convertible which is definitely a good thing because SCRC's shareholders have already gone through quite a lot of dilution. During the first nine months of 2014, for example, the company sold a total of 27,299,202 restricted shares for proceeds of around $1.5 million (or just over $0.05 per share). They also issued 9,009,937 freely tradeable shares as a conversion of $623,446 worth of debt (the average conversion rate comes in at just under $0.07 a piece).
Hopefully, SCRC's management team will be able to keep the discounted stock issuance at a minimum from now on because if they don't, the shareholders might get upset. And nobody wants to upset the shareholders, right?
Watch the video to learn about the probability of SCRIPSAMERICA, INC. (SCRC) Chart Signal as of Dec 18, 2014
http://www.hotstocked.com/article/88816/scrip...l#comments
The OTC Markets is an interesting and diverse place. Some of the companies listed there are solid operating entities and their stocks tend to be relatively stable. The rest of the penny stock enterprises, however, are still deep in the development stage and are losing quite a lot of money every quarter. Their tickers, in turn, are prone to volatile swings. So, where does ScripsAmerica, Inc. (OTCMKTS:SCRC, SCRC message board) stand?
Somewhere in the middle, apparently.
On the one hand, you've got the 10-Q for the third quarter of 2014, and it must be said that the figures in it might surprise quite a lot of people. Here's what we mean:
cash: $1.2 million
current assets: $6.4 million
current liabilities: $4.6 million
quarterly revenues: $12.8 million
quarterly net income: $1.5 million
The statement is, without a shadow of a doubt, quite solid. The balance sheet clearly shows that SCRC is in a healthy financial position, and while there are other OTC companies that register impressive revenues, few of them can brag about a seven-figure net income.
So, the business is progressing nicely, but unfortunately, the same can not be said about the stock. Indeed, SCRC registered two green sessions on Monday and Tuesday during which it managed to gain more than 30%. Even so, the ticker is now sitting at just over $0.14 per share and that, you have to agree is miles away from the 52-week high of $0.21 registered back in February. So, let's take a closer look and see what's holding SCRC back.
About a year ago, the company's revenues were coming primarily from pharmaceutical distribution services delivered to companies like McKesson Corporation (NYSE:MCK). Unfortunately, the margins started to shrink and the management team decided to steer the company into a different direction. They said that they will focus both on getting the RapiMed products off the ground, and on entering the specialty pharmacy market.
The pharmacy part of their business seems to be going well. The company recently acquired the last portion of the outstanding stock of Main Avenue Pharmacy Inc. which means that 100% of Main Avenue's revenues and profits are now coming into SCRC's bank account.
Unfortunately, things are not coming along quite as smoothly when it comes to the RapiMed products. Indeed, the pediatric pain reliever and fever reducer is now being sold in several countries outside the US and SCRC is making revenues out of it. The latest 10-Q, however, informs us that it won't be available in the States before the start of 2016, and we can see that some investors are not particularly happy about the delay.
They also seem quite baffled by the latest press release. SCRC say in their report that the cash flow should be sufficient to support the company's operations, but last week they established a $4 million line of credit which might suggest that their initial estimates weren't completely correct.
Fortunately, the debt is not convertible which is definitely a good thing because SCRC's shareholders have already gone through quite a lot of dilution. During the first nine months of 2014, for example, the company sold a total of 27,299,202 restricted shares for proceeds of around $1.5 million (or just over $0.05 per share). They also issued 9,009,937 freely tradeable shares as a conversion of $623,446 worth of debt (the average conversion rate comes in at just under $0.07 a piece).
Hopefully, SCRC's management team will be able to keep the discounted stock issuance at a minimum from now on because if they don't, the shareholders might get upset. And nobody wants to upset the shareholders, right?
Watch the video to learn about the probability of SCRIPSAMERICA, INC. (SCRC) Chart Signal as of Dec 18, 2014
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