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In response to those shareholders who have inquired as to why I have not posted a "Dilution Update" for a while, the reason is because ever since the sp began sputtering (first in the .17x levels and then the slow bleed down followed by the flash crash), there has been no need for it as there has been no change.
Remember, the dilution schedule I have been tracking and sharing with folks here is primarily to track all the restricted shares that have unlocked and hit the float (primarily held by financiers and the CORE criminals).
So where we last left off, all such shares in the overhang that were priced at .13x and below (other than the .05 PIPE stock along with other shares held by JOEY Z and his CORE con artists) have effectively flushed thru already. So the next potential batch of stock that we would need to be on the lookout for would be those priced at .14x, and there are only approx 1M shares of these left -- and these aren't priced to sell until the .196x level. So as you can see, it will be a while before we need to worry about overhang-related dilution (and even then, if you recall the most recent Dilution Update I had provided, the quantities at each level beyond that is relatively thin, so it would not take much buying interest to push thru each respective resistance point).
BUT, discussing overhang-related dilution is now tantamount to letting the cart lead the horse. We are nowhere close to having this be a relevant discussion point right now. We have to first allow all the short-term trading shares to churn over level by level -- and hope that little pieces of good news finds its way into the market periodically to help provide the little push from leg to leg after each round of consolidation. It's like building a house of cards (ironic analogy, I know, LOL...) where delicate balance is required at each level otherwise it crumbles and we have to start all over again...
For once, SCRC's resident homophobic criminal JOSEPH ZAMPETTI (aka Celtics2014) speaks the truth -- albeit unwittingly, LOL...
Well, lookie here, it's Tryz, another self-disclosed CORE member... ...so where's that Form 4 from Urbanski documenting all of his massive dumping the day of the flash crash, hmmm? After all, you were the one who started that rumor trying to get folks to hold onto their shares by saying that the selling was just one guy, Urbanski, unloading and that there was nothing to worry about... ...you do realize that the deadline for filing a Form 4 for any insider who sold that day has since past and there has been NO FORM 4's FILED WHATSOEVER, right???
The chest thumping continues, LOL... ...but I suppose that the fact that JOEY Z and his fellow criminal CORE members are continuing to pump is a good sign for us, LOL...
More desperate pumping, mis-information, and spinjobs from -- you guessed it -- our favorite homophobic criminal, JOSEPH ZAMPETTI:
Another gem (pathetic and desperate as it is) from SCRC's resident homophobic criminal, JOSEPH ZAMPETTI:
The racist criminal himself, JOSEPH ZAMPETTI, speaketh!!! Here is his latest pump from his platform on the Hangout where he goes by the moniker "Celtics2014" and issues his marching orders and talking points for his CORE minions to spread on his behalf:
Here's the latest public "testing the waters" pump by one of the criminal homophobe JOSEPH ZAMPETTI's fellow gutless criminal CORE associates:
Glad to see more and more folks recognizing and taking advantage of the TRADING (not investing) opportunities here w/SCRC. Those who are long-timers have seen for the past couple of years that SCRC has been a veritable ATM machine for those who were not naive enough to fall for the horrible conflict-of-interest-filled pumps by the criminal homophobe JOSEPH ZAMPETTI and his legion of fellow CORE members who relentlessly urge others to only buy/add/hold and actively discourage ever selling or trading.
As 2014 was coming to a close, SCRC was well on its way from being a stock with only a "trading thesis" to a stock with BOTH a "trading thesis" and an "investment thesis".
However, as Q1'15 unfolded, we began to see SCRC's fundamentals fall apart. It's golden goose which comprised almost 100% of its revenues, lost CVS/Caremark, the 2nd largest pharmacy benefits manager in the country, and based on the piddly $1.45M in approved orders PR'd for MAR, it would seem that CVS/Caremark apparently accounted for anywhere between 70-80% of SCRC's revenues. Remember, in MAR, the annual beginning-of-year re-setting of deductibles is no longer an issue, so EVEN WITH the uptick due to deductibles no longer being an issue, we still only saw $1.45M for MAR.
In addition, the much hyped PIMD apparently also fell on its face -- so badly that BS Schneiderman didn't even PR MAR revenues. However, we were able to reverse-engineer this number based upon the $912k total Q1'15 number he included in the recently published Investor Presentation deck. Based on $912k for the entire Q1'15 period, after knowing JAN and FEB to be $137k and $554k, respectively, MAR must therefore be only $221k, a decline of over 60% in only its 3rd month of operations.
In addition, the much hyped $4M LOC is virtually non-existent and unavailable due to the drastically decreased A/R balance. Remember, the amount of the LOC that SCRC can actually tap into is capped at 85% of Main Ave's A/R balance.
In addition, the NT filing gave us a glimpse of what the 10K will report, and so we can expect that the upcoming 10K will reflect that while SCRC made a profit in Q3'14, that it somehow managed to increase approved orders by almost $2M in Q4'14 comapred to Q3'14 but yet somehow managed to LOSE MONEY in Q4'14 while operating in one of the highest margin business segments on the planet.
Meaningful good news can certainly improve the company's fundamentals, but at this time nothing is really "expected".
Happy trading folks. Nothing wrong with speculating or hopping on a bandwagon when the indicators signal a high probability (though no guarantees, of course) of a likely move up. There has always been plenty of money to be made here at SCRC with plenty to go around -- just be aware that there are scores of members of the CORE group (many who have publicly self-disclosed their membership) who want it all for themselves and have shown a willingness to lie, cheat, steal, and violate securities fraud laws to stick their hands in everyone else's pockets.
GLTA...
SCRC's latest Investor Presentation Deck published 4/7/15, which is what they will present in Las Vegas and is what they likely also presented at the recent previous conference as well:
http://www.snl.com/Cache/1001196841.PDF?Y=&O=PDF&D=&FID=1001196841&T=&IID=4578348
Interesting tidbits...
SHARE STRUCTURE
* 138,829,119 Outstanding
* 37,000,000 Held By Founders
* 17,000,000 Restricted
* 40,000,000 Held By Core Group
Look who is now officially a "public figure/entity", LOL... ...it is now officially permitted to use the word "CORE" and discuss this group of "investors", most of whom have spent the past 2 years lying and stealing money from the retail masses while violating securities laws to hide their status (and resulting financial conflict of interest) as paid promoters... ...game on...
PIMD
Q1'15 revenues are being reported to be $912k.
So if JAN was PR'd to be $137k, and FEB was PR'd to be $554k, then this means that MAR was only $221k.
Yikes...
Q1'15 TOTAL REVENUES OF $9.6M
So this provides clarity to the previous PR that simply stated that Q1'15 revenues would be "almost $10M".
So now let's revisit the calculus:
JAN approved orders PR'd to be $3.49M
FEB approved orders PR'd to be $3.76M
MAR approved orders PR'd to be $1.45M
JAN-MAR PIMD now disclosed to be $0.9M
Add 'em all up and what do we get? $9.6M.
Nice and tidy math, right? Yes and no. As stated previously, the problem is that based on the Q4'14 estimates from the NT filing, it appears that SCRC still had approx $7M worth of backlog as of 12/31/14. For Q1'15 revenues to only be $9.6M -- and for it to be 100% accounted for via the Q1 monthly approved orders and PIMD revenues as itemized above -- this means that as of 3/31/15, Main Ave still has approx $7M worth of backlog. IMO, most likely Main Ave caught up and filled the backlogged Rx's from 12/31/14, but this just means that they only filled approx $1.7M of the $8.7M worth of new approved orders during the entire Q1'15 period. THIS IS REALLY BAD NEWS.
If history is any indication, we should see the MAR approved orders number sometime this week. Hopefully, the loss of CVS/Caremark will not be as bad as we think. A silver lining is that with the beginning-of-year deductibles issue expected to be behind us now, maybe the increase in orders related to deductibles now no longer being an issue/obstacle will offset some of the loss related to CVS/Caremark, resulting in a net net that is minimal. Cross your fingers folks!
And re: PIMD, with $137k in JAN and $554k in FEB, hopefully, we can be close to $1M for MAR.
And re: the diabetic supply program, hopefully we can be close to reporting 1,000 enrollees by end-of-MAR.
If we are short of $1M for PIMD and 1,000 enrollees for the diabetic program, then I hope we are not short too much as it would not be a good sign for where the future growth curve would then project the ceiling to be if the growth rate already began petering out in MAR (remember folks, Main Ave's monthly growth rate when it launched last year kept gaining steam and didn't show any signs of petering out until OCT-2014, a full 9 months after it launched)...
With the expected Q4'14 net loss that was disclosed in the NT filing yesterday, an important metric to look for when the 10K comes out is the Cash Flow Statement, in particular the disclosures re: how much of the expenses were cash expenses vs non-cash expenses, and how much of the cash expenses was actually paid vs accruing as A/P.
Point being, with approved orders and revenues dropping significantly, it logically follows that A/R will also nosedive.
Why is this important?
Because of the terms of the LOC.
Remember, although the maximum amount SCRC is theoretically able to drawdown is $4M, the actual amount available to SCRC is much much less.
The terms of the LOC stipulate that SCRC is only permitted to draw down an amount equal to 85% of Main Ave's A/R balance.
We do not know what and how much SCRC has drawn down on this LOC, but we do know that for sure they drew down on it to paydown some higher interest debt.
Bottom line is that if SCRC had drawn down an amount that -- although within the 85% of A/R theshhold at the time -- now falls OUTSIDE (i.e. in excess of) the new threshhold (because A/R has fallen so much), SCRC will need to pay the excess back immediately in order to fall under this max threshhold.
So this then begs the question: If SCRC lost money during Q4'14 and we know that revenues nosedived during Q1'15, where is this cash going to come from to pay back the LOC in order to remain in compliance with the terms and covenants of the LOC?
Hence, my comments above re: paying attention to the cash flow disclosures in the 10K to see the extent of cash vs non-cash expenses and whether A/P is growing or not, as these will give an indication as to whether SCRC may have been able to hold onto some cash.
The worst case scenario is SCRC violating the terms of the LOC by being unable to pay back any excess drawdowns and then having Triumph enforce their rights a la Ironridge.