RXMD DD... WHY LONGS ARE HOLDING TIGHT! .......
Post# of 1525
Posted On: 01/02/2016 11:35:49 AM
RXMD DD... WHY LONGS ARE HOLDING TIGHT ! .......
In OTC land, it is COMMON practice to say "flip" and take profits...That is WISE ADVICE when you are buying CHARTS and MOMENTUM ONLY ... Many are not capable of finding the "DIAMOND" in the rough, and when they attempt to, they get BURNED mightily... First problem is they do not [ b]KNOW WHAT THEY OWN[/b] and [ b]WHY![/b]
Most OTC companies are pure GARBAGE and should be flipped when ANY gain can be had...
Below is the case to HOLD your shares of RXMD TIGHT! OR begin to take a position!
First I will list the 10 basics you want to see from a company before you even THINK of holding vs flipping in OTC land
1) One must see an IR department that COMMUNICATES with its shareholders
2) One MUST see CASH FLOW and a brick and mortar location anyone can walk into during business hours to see the operation.
LOCATION, HOURS AND SERVICE AREA
NORTH MIAMI BEACH
901 N. Miami Beach Blvd. Suite 1, 2, North Miami Beach, FL 33162
Monday- Thursday 8:30 AM - 6:30 PM
Friday 8:30 AM - 6:00 PM
Saturday 11:00 AM - 4:00 PM
SERVICE AREA
PharmCo currently services: Miami-Dade, Broward, Palm Beach, Martin, and St. Lucie Counties
3) The industry must be as close to recession-proof as one can be...
Everyone gets sick and needs RX at some point...even ME!. Many others (including seniors, and AIDS patients are on regular RX for life...
" In a recession, simply carrying on with business as usual can be an achievement. Pharmaceuticals, healthcare companies, tax service companies, gravediggers, waste disposal companies and many others are in a category that, while not jumping ahead during a recession, can plod along while other companies suffer. This is simply because people get sick, get taxed and die (not always in that order) no matter what the economy is like. "
4) The management team must explain to its shareholders - their goals and a plan to execute .
http://www.otcmarkets.com/stock/RXMD/news/Pro...76&b=y
5) Company must demonstrate VALUE and GROWTH
http://www.otcmarkets.com/stock/RXMD/news/Pro...09&b=y
6) Debt levels must be SUSTAINABLE long term, or DIMINISHING over time.
http://www.otcmarkets.com/stock/RXMD/news/Pro...49&b=y
7) O/S must be low (<500M) and any increase in that O/S above 500M must be for expansion and growth...NOT DEBT PAYDOWN Debt paydown is common within the first 500M O/S..above that threshold to pay debt is a red flag without MANY other variables going PERFECTLY Current Estimated O/S is ~340M and debt is Essentially paid off...
Company must demonstrate an ability get become PROFITABLE .
http://www.otcmarkets.com/stock/RXMD/news/Pro...83&b=y
9) Company MUST be SEC compliant OR HAVE A DAMN GOOD REASON WHY IT ISNT In The case of $RXMD, management is cutting ALL FAT, and unnecessary expenses, and is ulitizing a LOOPHOLE (Form 15) to be EXEMPT from SEC filing due to number of shareholders <300. Last check we were at 185...so temporarily not filing due to expense-cutting wherever it legally can.....
http://www.otcmarkets.com/edgar/GetFilingHtml...D=10573065
10) Know whos invested with you.. Who owns the stock? Who are your fellow shareholders?
Think it means nothing? NOPE! It means everything in times like these. Go to the message boards...See if there are KNOWLEDGABLE LONGS who believe in the company. Ask them to explain why... See how LOCKED the FLOAT is. See if they share DD with all or not...
RXMD checks off all the boxes on ALL 10 Basics.. INCLUDING THE MESSAGE BOARD
I could end it there [color=green but thats just the beginning [/color].... We now know $RXMD is a ticker to HOLD. Now lets see if we can figure on the FUTURE cause thats where REAL money is made...Not flipping for beer money on MOMENTUM and CHARTS only.... Those are the reasons you find RXMD...The DD is why you STAY AND INVEST...
............. R X M D........ V A L U A T I O N.......TODAY .0935 AND 1 YEAR OUT (NO CATALYSTS) . 1122 ...
In attempting to come up with a TRUE VALUE of the company today, a few assumptions must be made... Current O/S and net profit after debt payoff at this point is unknown... The below GEM of a post gives us the best look at why we believe the debt is either FULLY PAID OFF or ESSENTIALLY PAID OFF
We can use the post to assume the debt is paid off, and O/S is ~350M.
The company is guiding to ~15M in annual sales (not including 340B and expansion to Palm Beach County... 1.2m * 12 = $14.4M
http://www.otcmarkets.com/stock/RXMD/news/Pro...83&b=y
If we use a 25% profit margin on gross income we come up with $3.75M in annual profits (before growth) 2016... Year 1.
Divide $3.75M in net profits by 340M in O/S and that gets you .011 .
The pharmacy/bio industry uses a PE of 17
I will use just HALF of that... 8.5
8.5 * .011 = . 0935 /share = TODAYS TRUE RXMD value...
Now the company has been growing at minimum 20% a year (Not including the 340B contract or Palm Beach County expansion)
http://www.otcmarkets.com/stock/RXMD/news/Pro...28&b=y
Before ANY NEW CATALYSTS this company will be worth .1122 11/2016
Bottom line .10 is where I will begin offering 10% of my shares for sale...
Any shares sold for less is foolish and is giving away thousands tomorrow for dozens today.... We will have our ups and downs..especially this coming week.... THINK BIG and TRUST THE DD...
In OTC land, it is COMMON practice to say "flip" and take profits...That is WISE ADVICE when you are buying CHARTS and MOMENTUM ONLY ... Many are not capable of finding the "DIAMOND" in the rough, and when they attempt to, they get BURNED mightily... First problem is they do not [ b]KNOW WHAT THEY OWN[/b] and [ b]WHY![/b]
Most OTC companies are pure GARBAGE and should be flipped when ANY gain can be had...
Below is the case to HOLD your shares of RXMD TIGHT! OR begin to take a position!
First I will list the 10 basics you want to see from a company before you even THINK of holding vs flipping in OTC land
1) One must see an IR department that COMMUNICATES with its shareholders
2) One MUST see CASH FLOW and a brick and mortar location anyone can walk into during business hours to see the operation.
LOCATION, HOURS AND SERVICE AREA
NORTH MIAMI BEACH
901 N. Miami Beach Blvd. Suite 1, 2, North Miami Beach, FL 33162
Monday- Thursday 8:30 AM - 6:30 PM
Friday 8:30 AM - 6:00 PM
Saturday 11:00 AM - 4:00 PM
SERVICE AREA
PharmCo currently services: Miami-Dade, Broward, Palm Beach, Martin, and St. Lucie Counties
3) The industry must be as close to recession-proof as one can be...
Everyone gets sick and needs RX at some point...even ME!. Many others (including seniors, and AIDS patients are on regular RX for life...
" In a recession, simply carrying on with business as usual can be an achievement. Pharmaceuticals, healthcare companies, tax service companies, gravediggers, waste disposal companies and many others are in a category that, while not jumping ahead during a recession, can plod along while other companies suffer. This is simply because people get sick, get taxed and die (not always in that order) no matter what the economy is like. "
4) The management team must explain to its shareholders - their goals and a plan to execute .
http://www.otcmarkets.com/stock/RXMD/news/Pro...76&b=y
5) Company must demonstrate VALUE and GROWTH
http://www.otcmarkets.com/stock/RXMD/news/Pro...09&b=y
6) Debt levels must be SUSTAINABLE long term, or DIMINISHING over time.
http://www.otcmarkets.com/stock/RXMD/news/Pro...49&b=y
7) O/S must be low (<500M) and any increase in that O/S above 500M must be for expansion and growth...NOT DEBT PAYDOWN Debt paydown is common within the first 500M O/S..above that threshold to pay debt is a red flag without MANY other variables going PERFECTLY Current Estimated O/S is ~340M and debt is Essentially paid off...
Company must demonstrate an ability get become PROFITABLE . http://www.otcmarkets.com/stock/RXMD/news/Pro...83&b=y
9) Company MUST be SEC compliant OR HAVE A DAMN GOOD REASON WHY IT ISNT In The case of $RXMD, management is cutting ALL FAT, and unnecessary expenses, and is ulitizing a LOOPHOLE (Form 15) to be EXEMPT from SEC filing due to number of shareholders <300. Last check we were at 185...so temporarily not filing due to expense-cutting wherever it legally can.....
http://www.otcmarkets.com/edgar/GetFilingHtml...D=10573065
10) Know whos invested with you.. Who owns the stock? Who are your fellow shareholders?
Think it means nothing? NOPE! It means everything in times like these. Go to the message boards...See if there are KNOWLEDGABLE LONGS who believe in the company. Ask them to explain why... See how LOCKED the FLOAT is. See if they share DD with all or not...
RXMD checks off all the boxes on ALL 10 Basics.. INCLUDING THE MESSAGE BOARD
I could end it there [color=green but thats just the beginning [/color].... We now know $RXMD is a ticker to HOLD. Now lets see if we can figure on the FUTURE cause thats where REAL money is made...Not flipping for beer money on MOMENTUM and CHARTS only.... Those are the reasons you find RXMD...The DD is why you STAY AND INVEST...
............. R X M D........ V A L U A T I O N.......TODAY .0935 AND 1 YEAR OUT (NO CATALYSTS) . 1122 ...
In attempting to come up with a TRUE VALUE of the company today, a few assumptions must be made... Current O/S and net profit after debt payoff at this point is unknown... The below GEM of a post gives us the best look at why we believe the debt is either FULLY PAID OFF or ESSENTIALLY PAID OFF
We can use the post to assume the debt is paid off, and O/S is ~350M.
The company is guiding to ~15M in annual sales (not including 340B and expansion to Palm Beach County... 1.2m * 12 = $14.4M
http://www.otcmarkets.com/stock/RXMD/news/Pro...83&b=y
If we use a 25% profit margin on gross income we come up with $3.75M in annual profits (before growth) 2016... Year 1.
Divide $3.75M in net profits by 340M in O/S and that gets you .011 .
The pharmacy/bio industry uses a PE of 17
I will use just HALF of that... 8.5
8.5 * .011 = . 0935 /share = TODAYS TRUE RXMD value...
Now the company has been growing at minimum 20% a year (Not including the 340B contract or Palm Beach County expansion)
http://www.otcmarkets.com/stock/RXMD/news/Pro...28&b=y
Before ANY NEW CATALYSTS this company will be worth .1122 11/2016
Bottom line .10 is where I will begin offering 10% of my shares for sale...
Any shares sold for less is foolish and is giving away thousands tomorrow for dozens today.... We will have our ups and downs..especially this coming week.... THINK BIG and TRUST THE DD...
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