Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
J1989, this is what I see. They have been acquiring companies for the last few years. They could easily make profits temorarily if they could let some employees go. I think MS Mars was trying to find the best solution for everyone. CEO may have left due to conflicticts on their business plans. This just my opinion. Employee morale is important to any company. You don't want to abruptly start terminating jobs without a good plan that can sustain your business growth either. They might let some people go if this acquisition mode is not stainable. They have been trying to expand their business by utilizing technologies that are currently available to them to raise profitability without damaging what they have right now. I would like to see a successful S-1 submission, but I am not for the NASDAQ uplisting at this moment when they are not making profits. It is unfortunate they need to issue a lot of shares to acquire the company, but I can take it as log as they start making profits by going nationwide. I definately don't want to see another big OS increase though. IMHO.
The effect of two acquisitions is waning as I predicted. They need continue their expansion mode to reach profitability. Overall, however, I am encouraged to see this increase in 340B submissions. I think they are putting the focus on their 340B business more where they make money by providing services (It's the initial stage of their SaaS model), I think. The LOI showed their future direction. I kind of figured the August numbers may not be as good as they have been since they delayed this PR. 458K is not bad though. If they make that much every month, it is a $40 mill per year pace. We would like to better numbers, not bad. IMO
It is good to know they are executing their business plan. They want to maintain their delivery model. That is their strong point, but they cannot just employee more people. They need to expand their customer base without adding more people.
Yes, I agree. Premature uplisting will hurt RXMD without generating good profits continuously. RXMD may needs to do a big RS to up list to NASDAQ at this moment. Even if it can get there, it will be hammered down without any profits. New shares need to be issued to raise money then. RXMD need to achieve profitability first. IMO.
In my experience, employees purchase company shares through their stock purchase plans or their 401k plans. Buying more outside of those plans is somewhat discouraged.
Thank you MastaBeta, I am hoping that is the case. I don't post often, but this seems to be a critical juncture for this company so I am posting relatively more often. I see many new faces and familiar faces after long absence recently.
RXMD has enjoyed YOY revenue increases for the last couple of years by making two acquisitions. Revenue growth, however, the revenue growth rate is shrinking lately. RXMD will be hammered down at this rate. If all the financial numbers are lies as some people suggests, they could give us better numbers. I believe RXMD is not lying to us. Armen is trying to expand their business model and trying to profitable by doing so. He is trying to grow by adopting a SaaS full subscription model. IMO. It is a highly scalable model. The subscription number could potentially increase rapidly. $10 mills is not big money if RXMD has a lot of cash. Unfortunately, they don't and they are not even SEQ reporting. My question is the timing of the LOI. Was it that urgent? He could have done it after S-1. Many people don't seem to like it. The price is going in the wrong direction. If it goes up, less shares need to be issued. I am hoping for that. We don't want issue so many shares for sure. I am not a good trader. I am not trying to pump this. I just want RXMD to be successful.
I think they are interested in CallingDr's database that has customer information. I don't know how many users are signed up to use CallingDr. RXMD can expand their customer base by combining their own customer information with CallingDr's. It is not just the software platform. Data is money. I hope it's worth more than 10 mills. IMO
csterner, these are very good points. Compare to Arman, MS. Mars was a good spokesperson for RXMD, I guess. If you care about something, you spend time and energy to show it. RXMD should show us the vision of their future without violating their quiet period restriction by putting things together in perspective since MS. Mars left. The vacuum created by MS. Mars resignation has a lot of weight in the current situation. Mars could not have done what she did without Arman's blessing, I think. In that sense, I think Arman and MS. Mars at least have shared the same vision until she left, I assume. IMO.
fat_tire, I know. I talked about it in my earlier message. It is a subscription based business. :) The key to this deal is that RXMD has an infrastructure that can support customers with their pharmacy related needs. It is a good match.
Threeflight, I don't think it is too much. If they spent 5 years to develop their software with 16 people. Even if you pay 100K dollars per employee, that would take 1.6 mills per year. 1.6 * 5 years = 9 mills. You know 100k is rather small for a software engineer. That is just for the salary. You have to pay more for their benefits. That should cost you a lot more than 10 mills if you start developing the software from scratch. It is not for the revenue.
I like this move. Data is money in this information age.
Interesting. Who is trying to take over? MMs seem to be trying to suppress the price with no reason other than RXMD is being quiet.
steviaw, I think RXMD needs this flashy stuff to expand their business model. This is just my opinion, but I think they found a profitable path in the 340B program. They have been implementing their business model for the last few years by expanding their web solutions. I think SaaS is their next step where they can generate revenues/profits by providing services to clients such as hospitals, nursing homes and other 340B eligible organization. It is not a new approach, it would be the next step in their evolution of their business model. Once you become a RXMD client, you can access their software to manage your organization's medical needs. Many software companies are moving toward this service model nowadays. It is a subscription based business model. I think that makes sense. The more subscriptions you sell, the more money you make. RXMD provides their clients with a total solution that fits each client. IMO
MDRESEARCH, The speculation started when MS. Mars said this " In April when we were retooling, our attorneys and a group of banking consultants suggested a new opportunity for us. They really advised us that given that our vision is much larger than just registration with the SEC, and then we really want to begin the process of creating our own technology platform, synthesizing our expertise in the code. We really should be very offensive with S-1, and not just go in an incremental way, while safer and will yield the effectiveness in its due course, they really think that we have an opportunity to do something bigger. That means a whole lot of more work for me, whole lot of more work for my staff to begin to take what could have been a 80 page document and turn it into a 180 page document. And so we are in that process of really being offensive, we are being ambitious, we are being bull, and trying to deliver our best outcome."
I believe so. They have pretty much accomplished things they said they would do in the last few years as far as I know. I bought my first shares in the beginning 2016 when they start making profits. Then they went into this expansion mode. If they fails to produce S-1, this whole thing will be considered a huge lie. That is like nullifying everything they have done up to now. Steady revenue / prescription increases. A couple of acquisitions. The new headquarter office. I think those are real and I believe S-1 is also real for that.
I meant the reason for the promos, not for S-1.
I think so too as I said before.
If I was a RXMD exec, I would continue our regular routine to show that our business is running as usual as long as it does not violate NDA. You can show longs that you are trying to protect the value of the company.
That is what I see also. stockforce's theory makes sense to me. S-1 was slated for the end of July after the postponement from the previous schedule around of May because of this unknown event. They needed time to update S-1. Then Mullen's deal was postponed by a month from the end of July to the end of Aug. We did not hear from RXMD, but S-1 was not revealed at the end of July as if it is related to the Mullen deal.
where did you get this information from?
You said "Wangenstein, RXMD is not uplisting to NASDAQ. EOM"
Oh, I don't know exactly what's going to happen, but this is very telling. They don't want to screw this up at this critical juncture. Very curious.
okavango, I have a different view on that. If I was a RXMD exec, I would rather pay money for stock promos in stead of buying 100000 share ($5000 worth) from time to time. The effect of spending a few thousand dollars here and there does not last long. You want to keep the price up so that the conversion rate is better for the company for their debt and also attract more people to sustain the price. I think it is a better solution for a small company like RXMD since they don't have tons of money to sustain the price by buying back shares continuously. To me, it makes sense. You don't want to see the price drop rapidly. Especially OTC is a wild place. It is hard to sustain a good price level unless you are super-successful. If you believe what they have done so far, you cannot just stereotype RXMD as a typical OTC company that uses paid promos to sell shares. The OS count has not increased as some people claim. RXMD can minimize future share increases when debts are converted if the price level is sustained. I don't want to blindly support RXMD, but I think they have been executing their business plan to implement their business model steadily. IMO.
okavango, I have heard some people making complaints about RXMD not trying to make itself heard enough. It seems they are damned when they don't and damned when they do.
I have a totally different view on this. They have made two acquisitions. They have doubled their revenue without doubling the OS count. They are inching closer to net profitability. They have expanded the headquarter. They have been building an infrastructure that supports their business model. It does not happen in a day. They have being doing groundworks for a number of years. I think they have done a lot. Hopefully, we will see the fruit of their efforts soon.
My understanding is that S1 needs to be filed and accepted by SEC to become a SEC reporting. They are in the process of generating S1.
I am sure everything was abruptly interrupted in April. It shows in the result. Everyone is adjusting to this new reality. Interesting to see how RXMD will perform once everything settles down. Hopefully, the prescription count will come back and will increase as more people are joining RXMD according to their PR.
Thank you Jimmy for correcting me. I somehow thought they reduced the OS to 330 mills from 350 mills in 2016. I am hoping they are going to get the performance bonus. It seems they are about to generate solid profits now. Exciting times ahead. Thank you for sharing your DD always.
If they can maintain future revenues at a 3.5 mills level or more from now on, they could cover the DIR cost. 3.5 mils x 3 months (May, Jun, July), which is 10.5 mills minus 9.5 mills (from Q1) is 1 mills. Assuming the DIR cost of 600k per quarter (Not per year). The difference is plus 400k per quarter. That is not bad. How much can they improve their profit margin? They could automate their work flow and improve many areas of their operation. There is a limit to that approach. They also have to find new venues to generate more revenues per employee head count. I think that is what they are doing now. It seems that they are on the verge of generating profits. It is an exciting time. I am hoping they will make it.
casinokid11211, This is how I see the current situation. When I saw the January (3.05 mills) and February (2.8 mills) revenue numbers, I was kind of worried. Those numbers were not quite aligning with the numbers from the Q4 for 2019. Everyone was saying those January and February numbers were record numbers and good. I thought RXMD slowed down at that time. I was wondering how RXMD could make 40 mills this year based on those numbers. I thought things were not working for RXMD despite everyone's excitement. Now it seems RXMD found some venues that can improve their revenues. It takes some time to make everything work smoothly when you make acquisitions. Things may be start happening. They made a good recovery in March. It seems 40 mils is a realistic target now. Their business seems to be thriving in this unusual situation. When I saw RXMD 4 years ago, OS was around 330 mills. I thought the number was relatively low for an OTC company. Now it is around somewhere around 450 mills after a couple of acquisitions and their revenue is 1.7 times of the 2016 revenue. They accomplished it without increasing the OS number 1,7 times. I think RXMD is better positioned today than they were 4 years go. Those 120 mill shares were well spent. I hope they are going to make it to Nasdaq, When they do, they need to have a healthy stream of profits by then. I don't mind to see a RS if they are health enough. If they are not healthy enough, they will be eaten alive even if they can up list to Nasdaq temporarily. I am cautiously optimistic.
I want them to uplist eventually, but don't want them to make a hasty decision.
The January revenue is supposed to be better than December's usually. I don't mean to bash a stock I own. I was expecting a better result this month since they said they started making profits. The current trend is not good. They should not reverse split to uplist to a major market unless they can prove their business model is working and can show upward profit movements. Even if they could uplist now, they will be hammered down without a healthy stream of profits. I hope they are going to tell us the reason why the revenue trend is downward right now. Does anyone know?
I don't know if she intended to fool people. My take is that she did not want investors to misinterpret the October result at the first glance. She wanted to protect the image about RXMD. "RXND is growing". The October number did not look good at first. Then you realize the number actually is showing good growth after careful examination. They had less working days in October last year. In other words, she did not need to mention $800K to counter balance the initial bad impression. She is sometimes overprotective of RXMD image. Had the number actually been bad and she really tried to fool us, it would have destroyed the image that I had about RXMD. I am long and not a pumper. I try to be pragmatic about RXMD. I am still looking for real definitive signs of growth. They are fighting good battles so far. I would like to see more growth with the current asset. Ms. Mars said the last Oct and Nov were profitable. That is good, but I would like to see actual numbers in an official financial statement. I understand what RXMD is trying implement. I hope they will succeed.
I was taken back a bit by her mention of $800k at first. At the first glance, I thought the Octorber result was not so good.
Then I took a second look at the number of days they were open in October and realized they had a couple of days less than October 2018.
They generate over 150K revenue per day. The October revenue would have been around $3.7 mil instead of 3.4 mil. That would be a 94% increase compare to October 2018. That would not have been bad at all.
casinokid11211, I think the 800k revenue is for their 340B business. They used to report it more often, but they no longer do so on a regular basis (before you started coming to this board). They just receive a fee for the service. It is not a part of their regular prescription sale revenue. They usually treat it separately.
I am not an accountant, but net profit and net income are the same while net revenue is before all administrative expenses and other after revenue expenses, I think. Ms. Mars said "net profitable". It sounds like they generated profit after all expenses are counted.
My bad, It looks like they had 23 business days in October and 20 business days in November. They make about $150000 per day. If they had 23 days just like in October, they could have made 3.5 or 3.6 mils. That is not bad at all.
Net profit is good, but I wonder why these numbers are not what I had expected for November. Usually November numbers are similar to those of October. They are usually higher than August's. I wonder if they are restructuring and reducing the head count to gain profitability. That could explain the reason why they are not so high. Does anyone know?
I am quite curious about the vision of their future. What are then up to? There are many technologies that you can take advantage of nowadays. It is all up you to come up with services that you want to provide. Technologies are equally available to everyone. You have to have connections, human connections, to implement your services. I am interested to see what kid of services that RXMD is planning to provide. They are not into retail business. They can implement many aspects of their business model without having offices throughout the US. (They may need some at key locations.) I am imaging they are providing middle man services through out the US. Middle man services that connects patients, nursing homes, doctors, insurance companies and carriers at the tip of your fingers. Just by vising their web site, your medical needs will be met. What if doctors appointments, your prescription schedules, insurance coverage and billing and so are all taken care of. You don't need to organize these thing by your self. RXMD can take are of them for you. That would be nice. You only need to talk to RXMD. I don't know if they are heading towards such a total solution to solve patients needs. (Especially for old people who need a lot of help.) That is one possible business model that I can think of for RXMD by looking at what they have been doing. The key to their success is not technologies that adopt. It is if they can build human connections, good relationships, (infrastructure) between various entities or not, I think.
My assumption could be wrong, but my understanding on this issue is that RXMD tried to average out numbers by distributing revenues between September and October in order to counter act to short coming of revenue due to the hurricane. The September number was healthier that I had expected. The October number was less that I had expected. The results were not bad, but they could not fully recover the loss in October. I figured the 800,000 is 340B reported in gross. They don't always report it. When they report, they sometime report it in gross and sometime in net. Please correct me if I am wrong. I think they should publish it in one fixed style if they want to publish it.