ProPhase Labs Inc (PRPH)

[conix]

NASDAQ:PRPH) sits around $1.00

Developer of Cold-EEZE® - clinically proven to shorten duration of common colds


ProPhase Labs researches, develops, manufactures, distributes, and markets over-the-counter (OTC) cold remedy and consumer products, natural base health products, and other supplements and cosmeceuticals in the United States.

Its OTC offerings include Cold-EEZE®, a zinc gluconate glycine product to reduce the duration and severity of the common cold symptoms; Kids-EEZE® soft chews to treat chest congestion, cough/cold, or allergies; and Organix® Complete cough/cold drops for coughs & sore throats due to colds.

The Company sells its consumer health products through national wholesalers and distributors, as well as independent and chain food, drug and mass merchandise stores, and pharmacies.

ProPhase Labs has a joint venture with Phusion Laboratories, LLC for the development and commercialization of non-prescription remedies using patented TPM technology. It also manufactures private label lozenges for retail customers; and manufactures, markets, and distributes a range of homeopathic and health products.

The CHEAP Investor Subscription-Based Newsletter has highlighted ProPhase Labs several times, and the stock has been a profitable investment for our subscribers in the past. Our last profile was in the December issue at $0.87, and it soared 83% to a high of $1.59. Since the price has fallen back near the $1 level, we thought it was time to take another look at ProPhase:



In November 2005, the stock (called Quigley back then) was a Wall Street favorite, selling at $16.80, when its major product, ColdEEZE, was a hot new product.

The Company has a good balance sheet with $4.6 million ($0.32 per share) in cash, a book value of $0.87 per share and no debt. Insiders own approximately 44% of the 14.6 million total shares outstanding, and institutions own 6% of the float (shares in public hands). This past quarter, insiders have purchased 300,000 shares at prices ranging between $0.85 and $0.95.

For the year ended December 31, 2011 revenues were up 20% to $17.5 million and net loss of $2.7 million was down from a loss of $3.6 million a year ago. There are only a total of 14.6 million shares outstanding.

Ted Karkus Chairman and CEO states, "Our success in building revenues in fiscal 2011 demonstrates that we now have a stronger distribution platform to launch new products and applications. In August 2011 we launched Cold-EEZE® Oral Spray which provides the same active ingredients for shortening the duration of the common cold as our clinically proven Cold-EEZE® lozenges, but in a new and convenient delivery system. This introduction was a natural next step in our evolution as a Company and at the core of our strategy to provide additional cold relief products for our loyal consumers that leverages our flagship Cold-EEZE® brand and adds incremental revenues for our Company. Initial retail and consumer response to our Cold-EEZE® Oral Spray is encouraging. We also hope to launch an additional Cold-EEZE® branded cold remedy product in the third quarter of fiscal 2012."

CONCLUSION

With a market cap of only $15 million and a very well-known product line, ProPhase could be an acquisition candidate. In our opinion, we believe the stock has long-term potential. To Continue researching ProPhase Labs, Inc., 621 North Shady Retreat Road, Doylestown, Pennsylvania 18901 or call 215-345-0919. The fax number is 215-345-5920. The Website:http://www.prophaselabs.com.

FULL DISCLOSURE

The CHEAP Investor has NOT BEEN COMPENSATED in anyway for this profile of (NASDAQ:PRPH) ProPhase Labs, Inc. and has chosen to profile this company based on the merits and fundamentals of the company. To the best of our knowledge, neither Mathews and Associates Inc., any of it's employees or any associate in connection with the distribution of this material own any shares and Hold No Position in (NASDAQ:PRPH) that could benefit as a result of this disseminated information.

Bill Mathews, the Editor of The CHEAP Investor, has been a long-term shareholder of (NASDAQ:PRPH) ProPhase Labs, Inc. and currently holds a position of 8,300 shares in his family portfolio which he has committed to hold and Will Not Sell for a Minimum Period of 90 Days following the release of this profile.