Imprimis Pharmaceuticals Inc (IMMY)

[ronk]

I'll have to look into that story. It looks like they dumped their topical analgesic right around phase 3 trials a few years ago. Getting FDA approval on new treatments can break a company. The new pharmacy regulations are only about 2 years old.
Did you listen to the conference call?

[Westorious]

Looks like people really didn't like that 3Q loss. Now I regret not keeping that stop limit. I'll have to average down when we hit bottom because I do believe we will get back

[MasterBidder]

Where are these shares coming from?

[MasterBidder]

All this positive press and we're looking at new lows... Sure starting to stink

[MasterBidder]

I remember when this was tdlpq a bk pennystock where shareholders fought back and reclaimed the company... It's actually got a great story

[ronk]

The split history is described in their 2014 10K:

https://www.sec.gov/Archives/edgar/data/1360214/000149315215000811/form10-k.htm

It's important to comb every detail and make a decision.

Company Information

We were incorporated in Delaware in January 2006 as Bywater Resources, Inc. in order to conduct mineral exploration activities. We changed our name to Transdel Pharmaceuticals, Inc. on September 11, 2007. In September 2007, we closed a merger transaction with Transdel Pharmaceuticals Holdings, Inc., upon completion of which we began our operations as a pharmaceutical company.

On June 26, 2011, we suspended our operations and filed a voluntary petition for reorganization relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Southern District of California (the “Bankruptcy Court”), Case No. 11-10497-11 (the “Chapter 11 Case”). On November 21, 2011, in connection with our entry into a line of credit agreement and securities purchase agreement with DermaStar International, LLC, we requested that the Bankruptcy Court dismiss the Chapter 11 Case. On December 8, 2011, the Bankruptcy Court entered an order dismissing the Chapter 11 Case.

On February 28, 2012, we changed our name to Imprimis Pharmaceuticals, Inc. and effected a one-for-eight reverse split of our authorized, issued and outstanding common stock, and on February 7, 2013 we effected a one-for-five reverse split of our authorized, issued and outstanding common stock.

On April 1, 2014 and January 1, 2015, we completed our acquisitions of all of the outstanding capital stock of Pharmacy Creations and Park, respectively.

Our common stock is currently traded on The NASDAQ Capital Market under the symbol IMMY. Our executive offices are located at 12264 El Camino Real, Suite 350, San Diego, California 92130 and our telephone number at such office is [phone]. Our website address is imprimispharma.com. Information contained on our website is not deemed part of this Annual Report.

Due diligence is a lot of reading at times and you certainly have to weigh pros and cons of an investment. It's a decision and you either buy it or you don't. Like I said in previous posts, not going to pump this and reviewing everything I can. But you have to read everything to make a good decision. Not just bits and pieces in my opinion.

[DrANK]

A little unnerving if I must say so.
https://www.splithistory.com/immy/
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Any thoughts?

[ronk]

I'll correct myself here. I believe that Mr. Baum stated on the conference call the Texas 503B facility is projected to be operational in February 2016 and the New Jersey facility should be operational in Q2 2016.

[ronk]

Great conference call. Well done Mark Baum. If anyone missed it you can listen to the archive here:

http://www.investorcalendar.com/event/174457

[ronk]

The market sets the price and the market is always right. If the company continues to grow at the same pace pps will be reflected and rewarded. I believe they are still operating at a negative P/E ratio and the current market price is reflective of that. This company is still in its infancy and the story has years to play itself out.

If you check the yearly chart, I believe a trader will have plenty of opportunity to flip in the 9s and eventually in the 10s in the future. I think I posted before that there are some companies I will trade in and out of, but some companies I like because of the long potential. I'm cost averaging. I will say that my plan is not to sell my shares any time soon. If there is an acquisition years down the road, I don't have to worry about selling my shares on the market, nor concern myself with volume.

I'm on the ground floor and will keep IMMY as one of my growth stocks. I like their business model.

[MasterBidder]

Doesn't matter. Volume means it's of interest in the market. Try selling your investment without liquidity. Or, what do u think makes a pps rise?

[ronk]

Only if one is trading. I'm investing.

[MasterBidder]

If you're asking that question, there's bigger questions to answer

[ronk]

I think it's going to look great next to Q3 2014.

IMMY is so new, the execution of their business plan really began in 2014. In 2015 they began acquiring pharmacies to launch their proprietary treatments and it sounds like their dropless eye therapy is really the clean up hitter for them.

2015 you can see real growth in their numbers - quarter to quarter - but they did acquire 3 pharmacies in September. Acquisitions could reflect negatively on a report but that's ok.

They forecasted better earnings for their urology treatment and stated their sales goals are about 60 days behind. That's why I think Q4, Q1 2016 are going to be really good.

Then the 2 new 503B compounding pharmacies will be reflected in Q2 2016 reports, barring any setbacks, I believe.

[Westorious]

You were saying this report may not be great?

[ronk]

Third Quarter Results Conference Call and Webcast

Imprimis will release its third quarter 2015 financial results on Thursday, November 12, 2015 and host a conference call on the same day at 4:30 p.m. EDT (1:30 p.m. PDT) to discuss its financial results and report on recent business activities. The conference call and webcast will be open to all listeners and a question and answer session will follow the prepared remarks.

To participate in this event, dial 877-407-8035 domestically or 201-689-8035 internationally, approximately 5 to 10 minutes prior to the start of the call. Additionally, you can listen to the event online at www.investorcalendar.com/IC/CEPage.asp?ID=174457, as well as at the company's website at www.imprimispharma.com. If you are unable to participate during the live webcast, the event archive will be available at www.investorcalendar.com/IC/CEPage.asp?ID=174457 or at the company's website. You may access the teleconference replay by dialing 877-660-6853 domestically or 201-612-7415 internationally, referencing conference 13614752. The replay will be available until December 13, 2015.

http://www.prnewswire.com/news-releases/imprimis-pharmaceuticals-announces-preliminary-revenue-for-third-quarter-2015-300162468.html

[ronk]

Just read they will be issuing quarterly earnings tomorrow.

[ronk]

Nope. Quarterly report time. Why is volume a concern?

[MasterBidder]

Where the volume go? Forward split time?

[ronk]

"Ethical Capitalism" CNN Money posted a nice interview with CEO Mark Baum today.

There is a great video with shots of one of their compounding pharmacy operations.

"I like to practice ethical capitalism. It's good business to be empathetic towards customers. It makes financial sense in the long run to behave like this," Baum said.

"in the long run"

http://money.cnn.com/2015/11/10/investing/alternative-drug-daraprim-price-gouging-shkreli/index.html?sr=twmoney111015alternative-drug-daraprim-price-gouging-shkreli0331PMStoryLink&linkId=18643036

I was thinking about selling in a year but I may play this out through 2017.

I believe the quarterly will be out tomorrow. I've read that analysts are predicting it won't be stellar but I believe Q4 and Q1 2016 should really show some progress.

I found the above article on their Facebook page. It's encouraging to see the positive replies from other FB members.

https://www.facebook.com/imprimis.pharmaceuticals/

[ronk]

Certainly looks that way. 3.6k shares right out of the gate.

[MasterBidder]

Looks like someone is continuing to liquidate anything they can into whatever is left for interest from the pr pump

[ronk]

I am too. Any good student of the market is still learning. There is always something it will teach you.

If I'm riding high and thumping my chest and riding the wave of the masses, the market will teach me a lesson by dropping me on my ear.

If I'm sitting quietly on shares doing my due dillegence/homework, I'll turn around and my guess was accurate over time. And patience gets a reward.

I think the time of high frequency trading is about spent and there are less and less opportunities to fight over scraps at the table. I think trading patterns will turn to long and deliberate plays. That's my gut. And I'm following it. It starts with companies I believe in. I don't put all my eggs in one basket. For as brutal a day it was, my portfolio went up by $16.73. Oh well. It wasn't much but it's only paper until I sell and the stories I've invested in haven't played themselves out. This being one of them.

[Westorious]

Great explanation. Excuse my ignorance, I'm still learning.

Not going anywhere though! Would be very happy to hit $11 near term :)

[ronk]

I don't know if there will be a split. I only know that this is a small float that has acquired some pharmacies this year and they will have completed two 503B pharmacies sometime in the the first quarter of 2016, according to statements.
I'm just trying to project in my own estimation what the value is over the next year.

Some will say that splits are merely an accounting trick. But the increase in shares allows for greater liquidity to acquire companies; if that's the plan.
I think they will continue to seek to acquire assets that have value like they have previously. Analysts have a short term target of +11 dollars. I believe with the completion of the 503B facilities things will open up. If the purpose of a stock split is to have the liquidity to purchase undervalued assets to strengthen the bottom line, it's a great thing.

[Westorious]

Is the split good or bad for us as shareholders?

[ronk]

The 2014 Q3 10K was filed on November 12 last year. So there should be some reading material how the aquisitions and balance look this week. Good or bad, looking forward to it. Really believing in this. With such a small float, I think there will be a split after the 10K for Q1 2016 is released. I'm thinking they will need liquidity for additional acquisitions over the next year.

[Westorious]

I see it. We're up 3.53% AH.

Let's hope we climb back up and get past $9 next week. It's seems we need a catalyst though.

[ronk]

Not sure if you can see after hours chart but the last 10 minutes there were about 33,000 shares sold to drop it to 6.17 and then a large block buy of 43,133 shares right at 4PM. Looks like a limit order for 6.45 a share.

[Westorious]

Jeeze, looks like we fell off a cliff end of day

[ronk]

Looking at the hourly chart, did this get driven down so someone could buy 43,000 shares end of day? That was weird.

[ronk]

Yup. Same goes for short positions.

“The stock market has a very efficient way of transferring wealth from the impatient to the patient.”
-WB

[MasterBidder]

Volume is what counts on these plays

[ronk]

Did anyone else catch this story today? Still saying in the news. IMMY

https://www.inverse.com/article/7784-pharma-bro-martin-shkreli-will-go-before-the-u-s-senate-after-unapologetic-price-gouging

[ronk]

Nice to see volume return to a reasonable amount. Hopefully the sellers are out and we stabilize a bit.

[MasterBidder]

Bounce time

[ronk]

Not worried near term. This is under short attack. They've made some enemies. I see nothing but consolidation for the next year.

http://finance.yahoo.com/echarts?s=IMMY+Interactive#{"range":"5y","allowChartStacking":true}

[Westorious]

Hopefully we head back up tomorrow.

[ronk]

There was a piece published on marketwatch a few minutes ago regarding Valeant where the author names companies that turn up in a search for "pharmacy network" on the SEC site and Imprimis is named in the article. Because the Philidor story has gained so much attention, the story appears to have spooked some and I think there were many that were stopped out at $7.

Holding and averaging for the year. Too much upside long term.

[MasterBidder]

Someone was liquidating into the pr campaign. That's for sure. Should be ready for round two here in few mins in 6s

[ronk]

Nice interview with IMMY CEO, Mark Baum.

http://stateofreform.com/commentary/opinion/2015/11/exclusive-mark-baums-disruptive-solution-to-the-drug-pricing-crisis-in-the-us/

Also, did a little research on Pharmedium, the compounding pharmacy acquired by Amerisourcebergen, for 2.6 bil and they operate a total of four 503B outsourcing pharmacies. Imprimis has stated they should have 2 operational in the first quarter 2016 in Texas and New Jersey.

[Westorious]

No PM but great to hear that news. We have a winner here my friend. Appreciate all your excellent DD. Have a great weekend.

[ronk]

Good call on that. Saw your message as it happened. Hopefully this dip helps to get rid of the panic sellers and the institutions are buying up 100,000+ shares a day where they belong. If an investor is panic selling they may want to consider allowing a 3rd party to manage their money. They are probably better at it.

Through June 30th 17% of IMMY was owned by insitutions. With 1.6 million shares held by institutions, and a share float 4.6 million - there were 2.7 million shares available, at that time. I think those shares may be close to getting gobbled up considering more than half the float now has traded hands since last Friday. I'm curious to see the figures of institutional ownership reported after the 4th quarter closes with the volatility seen in the past week. I firmly believe anyone selling is handing their shares over to fat cats. That's fine because they will stabilize the volatility once every apple has dropped from the tree.

Have a great weekend! I'll do some digging and post some more if I find anything of value. But not pumping this cause I want cheap shares too and it looks like its just you and me here! More shares for us.

[Westorious]

I see a bounce coming...

[ronk]

I'm not worried. My deadline is a year + out and I was actually hoping this would stay at a reasonable price. I'm going to save a little powder in case the financials don't impress in November and buy some more.

[Westorious]

Yup. I even had a stop loss at 7.30 but I canceled it. Going to average down because I see the potential here. The whole market isint great today so no surprise we have people exiting.

[ronk]

Just trading wise, this came close to testing 8 and there may be some stop losses at 8. So be wary. For some odd reason it's been my experience that people put stops in at whole dollar amounts. I don't get that but so be it.

[ronk]

I'd at the very least core trade. Too many times I've exited out completely, only to miss a huge pop. I'm not selling any shares though and if anything, will cost average, even when averaging up.

You can see all the emotional traders' behavior during the day. And discipline in the market doesn't include emotion. How frustrated were we on Monday when we thought we were holding a bag. Then I uncovered that other company getting bought out, and I think I'm holding a bag of gold now.

[Westorious]

Great write up. I agree, I like that your going "Buffet" on this one haha. Lots in the pipeline..this is a pretty safe long play I think.

[ronk]

It could've deflated some people it didn't pop like it could. But people know the Diaprim story and don't have a clear idea what the potential is with the greater picture. I think if it gapped up at a reasonable price it could've run a little but there were no shares for sale pre-market unless you were willing to pay in the 9's and the bids were all in the 7s. Then there were the large blocks in the AM on the ask that no one wanted to bite cause everyone's looking for cheap. Well.. It is cheap right now.

I think smart money has observed that this takes a dive at some point each day and they scoop up the lows from nervous traders. That's why volume always picks up in the dip and recovers pretty well. I'm actually hoping we stay in this range for a while and I can wait for some of my shorter term plays to pop so I can fatten my stash over here.

I'd like to hit 5000+ shares here without putting all my eggs in one basket. I think the financials in November might look weak from the expansion they just underwent. They just purchased 3 pharmacies in September for $499,000.

http://www.sec.gov/Archives/edgar/data/1360214/000149315215004558/form8-k.htm

But I think you'll see good earnings from that expansion in Q1 2016 after they complete the 503B facility. 2 nice catalysts to look forward to. If numbers are good at that time? A split would be nice, entirely possible with the small float. That's another catalyst. 2nd quarter earnings will reflect the 503B operations. Another catalyst. And remember that this will draw attention all year during 2016 elections with 3Q earnings coming out right at election time. Catalyst. At which point I only have to pay Uncle Sam 15% on whatever I sell. Patience is the reward and most folks are trying to sprint a marathon in the markets. I plan on going Buffet on IMMY. I used to only flip and trade and still do a little cause it's fun but the majority of my funds are in undervalued companies with huge upside. I'll wait for that "trade of a lifetime" that I hear people talk about but never seem to get it. Ya, know?