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.
Wow, you've done a lot of successful exchanges then. I'd say you are in good shape.
That's funny.
Agreed on timing.
As to buying in advance, people (and companies) do it all the time. People put down $1000 6 months in advance of the next Tesla model for example.
Because tests are still hard to come by and the quickest on the market is in minutes not seconds and those are anti-body tests (which do have issues) and do not test for the virus itself, the test DECN is said to have built on impedance, is a completely different type of test not just for speed, but for testing for the actual virus in 15 seconds. Their 2nd test will be an anti-body test to confirm whether someone has already been exposed to the virus.
So if your company was closed and you wanted to reopen and you had to wait 10-15 minutes for each employee to take a test vs 15 seconds, which one would you want? And so, because supplies will be limited, you put in an advance order to say, as soon as these get approved and made, I want x number.
Everything seems in line awaiting the testing results.
My reading of the PR is 3 days to contract lab and 7 for testing, so possible results in 10 days. Give them a few days leeway and say 2 weeks from today we should have news if not before.
You don't even allow a positive outcome as a possibility, do you?
You talk about the science and impossibility of the science. Well, with the posted links to the scientific studies, maybe you can tell us why the scientists are wrong as well.
Wonderful find. THANKS for sharing.
DECN has mentioned in past PRs that the inspiration for expanding their technology of glucose impedance platform to possibly detecting viruses was based on a few separate studies done in the past by other researches who laid out the science for impedance detection.
They also stated specifically H1N1 being verified in their South Korean tests so I think you have found a goldmine, one of those, if not THE study the science is based on.
Everyone on this board should read the paper in your link.
Giving me a much better feeling that we are just days from true liftoff and won't return until it has gone around the moon a few times.
.50 won't even be a temporary landing pad.
Do we even know if we are getting the EUA at this point, if they are just testing the kits now?
And why bother with a second kit application for the EUA, if we don’t even know that we are getting approval on the first one??
Thank you for your post.
I'm holding on. Lost a lot trying to time things. I'm still above entry and hoping that you are right. Within 2 short weeks we will know and I'll either be on a road of recuperating a lot of losses or will have added a little bit more to the loss column.
For know I'm still in the green, but don't hold nearly the number of shares others are throwing around.
IPWatcher, your answers would only make sense if the CEO had an insatiable desire to go to jail and/or spend the rest of his life fighting lawsuits after being highlighted in a WH conference for his "potential", but never tested kits.
We will know soon enough via the specialty lab results what those results are and whether or not it is validated.
But to issue the PRs he is issuing without having previously validated the design would just make him money he couldn't enjoy from jail.
The PR inferred a lot of good things like their tests really work, they are going to be able to manufacture and produce kits that will be sold before they are even produced etc.
No doubt specialty lab validation of test kits will trigger EUA and this goes to multi-dollars in my opinion and that is what I am holding for and why I added on the drop - the potential is there.
We already know interest is there and need is across the country and the world. What the PR didn't share was the data they have as to why are they hiring lobbyists and media people.
Why didn't they share that? Why wouldn't you share that?
What was said is encouraging, what was left out is frustrating, but it gives anyone a second chance to enter at a very reasonable price range, especially if you believe he wouldn't have released today's PR without their own extensive, "secret" in house data.
Can anyone tell me if they have submitted any patents on the design of GenViro? All we've seen posted here is trademarks for it.
I assume that they have patents for their glucose testing.
They mentioned in a previous PR that they had tested an impedance test kit successfully for H1N1 and something like "recently for the coronavirus which has a similar structure" or words to that effect.
Reading carefully through previous PRs will give you a lot of how this came about, but they have never shared whether they've tested 5 strips on 1 sample of blood or 100 test strips against 25 samples of blood.
Previously they shared that FDA told them they needed 30 dfferent blood samples if I recall correctly of venous blood which have been verified as coming from COVID-19 patients and others confirmed not being from COVID-19 patients in order to do their testing for the FDA EUA approval process.
So he is projecting complete confidence that the kits will pass the upcoming testing, but sure would be nice to know what that confidence is based on and share that with potential investors. There's no reason I can see to withhold that info as it would generate more interest than a Fortune 500 company being interested since the company's only interested if the test is really accurate and the FDA is warning people of non accurate tests.
You want this to skyrocket, reveal some hard core data on the test kit results. (if they are good, that is)
Both kits reveal results on site and within 15 seconds. They were comparing the advantages of their kits to a recently approved at home collection only kit.
One of the strangest and most uncomfortable PRs given the Tuesday PR.
While I bought more shares off the drop, I don't understand why today's PR didn't include any information as to what testing they've already done on the test kits, the accuracy of the kit or anything else.
We have to assume that they have thoroughly tested the kit if they are going public with media and lobbyists etc. etc. I get that. He certainly would be a fool to be doing all that on an untested kit, hoping it works.
And I understand that the FDA wants test data from a US lab and maybe they've only tested it in South Korea. But why not share what they've done and what the results were? Makes no sense to me.
From previous PRs, we know what he wanted it designed to do and how accurate he "expected" it to be. I guess we have to wait 10 more days to find out. I'm holding and I added because of the swift drop opportunity, but why he releases PRs without any data, I don't get.
You want big investor interest, you want people to get excited? Tell us what you've done in house testing the product and what the data results have been!
I hope the PR comes out before open, but there is a chance that if DECN is getting money directly from the current 500 billion dollar stimulus bill that includes 25 billion for testing, they might wait until after the bill is passed by Congress which is expected to be sometime this morning.
Gotta love the steady and patient process of buying today. Sure looks like steady accumulation.
Any input using figures and math would be greatly appreciated.
Yes, and such fools reaping in the gold treasure chest. Test kit validation and this goes over $10/share pretty quickly in the coming days/weeks.
A lot of speculation and mud slinging going on.
If someone has proof that the CEO is liquidating and selling his own shares, give proof. Otherwise it is de facto 'baseless'.
If SEC reporting companies are obligated in reporting material events and give advance announcements, what is the harm in a smaller company giving an advance announcement?
I've traded several "reporting" SEC companies that were dishonest to the core, so SEC reporting is not a guarantee of anything.
We are in pennyland. There are no guarantees, but over the past month or so, we have seen statements followed by progress. DECN has a new product for which they have filed paperwork with the FDA and there is ongoing communication between the FDA and DECN. DECN had announced being a two product COVID testing company in previous PRs and is going to give shareholders an update on Thursday.
Is that such a bad thing? Seems criminal to some people.
That is the fear. I even emailed the CEO of WORX to that effect, asking him to spend a few thousand dollars and have someone fly to Australia personally to verify all the info before signing off on the final payment, if he hasn't done so already.
It appears to me that Promedical was reselling kits that they were acquiring from some other manufacturer and possibly just repackaging/branding them under their own name. Whether or not they were doing that with or without legal rights to do so is another question.
WORX is a legit company. What Promedical is doing during these times I'm not as sure of. I would hate to see WORX suffer on account of getting scammed by Promedical misrepresenting itself or not able to produce the kits from their suppliers while telling WORX that they were manufacturing them etc...
Past PRs do seem to indicate that they had built some prototypes of the test and validated it, but it would be good to have clear verification of this and what the results were:
]March 16 PR (1 of 4 announced)
“Our product, introduced to the world only 14 days ago has entered its crucial development stage. We are awaiting release of blood samples from previously infected people in Daegu, Korea, so that we can complete testing and make a final report to the U.S. FDA so that we may secure our Emergency Waiver. In the meantime, all other requests made by the FDA will be met this week and next.
GenViro!™ has been validated at the company's R&D center in Daegu, Korea for the H5N1 virus and most recently the methodologically similar corona virus.”
March 20 PR
DECN to Finance 2Q 2020 Roll Out of its GenViro! Covid-19 "Rapid" Kits Using Non-Dilutive Debt Financing Totaling $13 Million Acquired in Near 0% Rate Environment
A more positive inference would be the subtitle to the PR:
COMPANY WILL DETAIL CURRENT PROGRESS OF FDA EUA WAIVER, FILING OF 2ND EUA FOR AT-HOME USE KIT,
I suspect you are right. My guess is that they are experiencing some delays of either ordered materials or needing to tweak the test kits. Hopefully it is only the former and not the latter.
Any news that validates the test kits actually work on blood samples would be overwhelmingly positive. Any news about delays of raw materials needed to ramp up manufacturing would only be temporary setbacks.
I think you are right that "issues" points to something negative. What the other 'company crucial business issues' relates to is anyone's guess. Still, I wouldn't think he would issue a pre-PR to get everyone's attention and interest if he was to announce a critical setback. I assume the overall news is going to be positive or point to a positive outcome.
Thursday April 23 on issues concerning the progress of our GenViro! Covid-19 test kits as well as other company crucial business issues.
All that is needed for this stock to take flight and not turn back is news that they have assembled a significant number of test kits and that they have verified with blood samples and not just on paper that they work and have a high percentage of accuracy.
Until that news is released, there is not much hope of EUA approval nor of future sales becoming reality.
Today's PR certainly seems to be a set up for positive news on Thursday, but what that news in concrete will be in relation to the actual test kits and their results is unknown. I'm cautiously optimistic. Today's PR might provide cover for friends, family and other business associates to buy stock in advance of Thursday's news.
If Thursday's PR verifies that they have built and tested the kits and submitted the data to the FDA and that the materials to build the kits will be arriving shortly, then I don't see anything holding this stock back from a steady climb as the potential for multi-dollars over the coming weeks to months will be built in.
But all the interest of people wanting a kit that works without the data proving it does, won't do much.
We need a sampling of kits that have been built and tested with the venous blood samples that the FDA required. Once that is done and results are in range expected, we are good to go.
I hope Thursday does not disappoint.
One will notice that WORX is not listed on the SEC website as one of the company's whose trading was halted because of false info being provided to investors and that WORX actually filed an 8K with SEC regarding what it said.
Also keep in mind that the Hindenburg Investors Research corporation is SHORT shares of WORX and it specializes in digging up any kind of dirt or issues that will create doubt and a stock to fall after a run up so that they and their followers can make money.
While their article raises questions, it also leaves out obvious information like, for example, how can WORX,with little cash, pay for a 35M order? Simple and clear in the WORX conf call. They have 1500 healthcare clients that order in bulk and they created a 3rd party Escrow for the purchase of PPE and test kits which is being funded by their clients for prepaid purchases. They also clearly stated that the test kits on order will not all be shipped to Rethink My Healthcare because others are in need and the requests for kits is beyond those requested by Rethink My Healthcare. Convenient that Hindenburg cites some "facts" but not others.
Am not expecting EUA approval news anytime soon. Keep in mind that the Pre-EUA application was based on all their homework designing something off of scientific papers and they had at least 3 different design proposals.
Because they chose and finalized which design proposal to go with doesn't mean they are ready with products in hand to test and file EUA application with data. I thought it was striking that in their PR about FDA conversations they stated that the testing would be "rigorous" I believe. They then said that they were putting in orders for the materials needed to produce the test kits.
Whether or not they have all of the needed materials in question in some quantity so as to be able to construct a limited supply of test kits to perform the necessary FDA blood requested testing we do not even know.
What I'm looking for with next PR is something to the fact that materials are being provided or in hand, they have constructed a few testing kits by hand and initial results indicate the tests will indeed work.
I think that is much more realistic than "imminent approval" of a test kit they had designed on paper at the time of the Pre-EUA submission.
Piece is one thing, coming from an investment company that is a short activist and is shorting WORX. Wouldn't behoove them to write something positive would it.
They claim everything is absurd and a fraud, from the $ collected and paid to the test kits themselves.
Can't vouch for the test kits, but in another post I laid out why it is not absurd that WORX went from inventory management for healthcare to providing a supply chain for PPE products for their customers.
Anyone have any news? Just ripped from 5.85 to 6.85 churning through over a million shares.
Hopefully not just a momentary bounce. Would be nice to see it close above $7 at least.
Symphon1,
I ended up reading the entire news release. Not been a good day.
I'm conflicted as to what to believe. The guy running Promedical seems to have real question marks and he could be scamming SCWorx without SCWorx realizing it.
Wish I had a way to verify who is truly manufacturing the test kits. The SCWorx PR indicates Promedical is promising to deliver the test kits, but requiring 50% on order and 50% before shipment.
If this deal goes bad, it's toast burnt and gone and SCWorx goes down with it.
Hindenburg at the very end of article states that they are short WORX, so when they feel they've made enough, downside pressure might get released. Notice they release PR on a Friday which is more effective in creating fear for people to hold over the weekend.
Don't know what to think about Promedical at this point. I think WORX is legit, the other I can't say.
So, who is Hindenburg Investment Research?
Founded by Nate Anderson, CFA, CAIA, Hindenburg Investment Research specializes in forensic research and activist short-selling. Our experience in the investment management industry spans over a decade, with a historical focus on buy side equity, credit, and derivatives analysis. While we use fundamental analysis to aid our investment decision-making, we believe the best edge can be had by uncovering hard-to-find information from atypical sources. In particular we look for situations where companies may have any combination of (i) accounting irregularities (ii) bad actors in management or key service provider roles (iii) undisclosed related-party transactions (iv) or ille
Upon further review of SCWorx website, I'm betting on WORX coming out of this will continued test kit orders, whether or not it is 2M per week is anyone's guess, as long as the first shipment does arrive and Promedical of Australia is not a brilliant scam since they claim to be a leading manufacturer and distributor of health related products.
SCWorx software for healthcare, from their website, is all about Item Master integration and Virtual Inventory management etc. It's about anticipating supply and demand of the hospital and healthcare items used and setting up supply chain orders and using AI to anticipate needs and order in advance...
In other words, SCWorx has been working with their healthcare customers to set up and streamline product purchasing and inventory through their software. In the chaos of COVID-19 and the lack of PPE, SCWorx saw the opportunity to research and create a narrowly focused supply chain for their customers for lacking PPE. (CEO claims this is his background for years - supply chain issues.)
So all SCWorx had to do was find legitimate supply chain or manufacturers of PPE and Test kits for its vast customer demands and then tell its customers how to use their SCWorx system to set up the products and order. To avoid legal/tax issues I presume, they set up a 3rd party hospital escrow for the depositing of funds needed to place prepaid orders to the suppliers to get bulk orders.
Sounds very feasible to me. And this deal is in sync with their software and line of business. So if Promedical is legit and the tests are legit, we should get confirmation of the first 2M kits next week and an update as to whether or not any further orders will be placed. Since the country is looking to get back to work and on site testing is key, with the needs for kits to be potentially in the hundreds of millions with Abott ramping up to only provide 20M per month, there is a lot of room for other valid test kits to ease the market demand and they already have other 1500 healthcare customers using their software they say. So I'm holding on until something "official" says otherwise.
But thanks for whomever posted the negative news article. At least I know why it tanked today instead of going up.
WORX Product line
WORX Customers using their software system
WORX is not claiming to cure anything; they didn't even talk about potential revenue on the conference call. They have a call and file an 8K with the SEC stating exactly what they claimed in PR, with actually more detail in the 8K.
I have my doubts about Rethink My Healthcare selling 2 million kits per week, but as per the 8K, even if the first shipment is the only shipment, WORX stands to benefit from $9M in that transaction alone.
Previous PR talked about providing other PPE here.
News article raises some flags, yes, something to consider. I'm going to wait until next week to see if shipment arrives and/or whether they release PR on a second shipment or not.
At this point, it's down far enough already and I don't think WORX would risk their entire business on a one-pony scam effort, complete with recorded Conference Call and 8K filing.
Promedical and WORX would be completely exposed and go down the tube. What I don't understand from news article is that they claim test kits are chinese while Promedical states that they manufacture them. Who's right?
Video seemed to be about different company, but news article doesn't give any confidence.
Still, with others claiming the SEC was visiting WORX this week, with the filing of the 8K stating that they had to pay up front for the tests, i.e. millions of dollars, and that WORX had pre-tested the kits with some of their client hospitals, would they be crazy enough to file paperwork with SEC if this was some type of hoax?
Especially with DOJ keeping its eyes out for any COVID related price gouging, false claims etc?
Why?
Can't read the Chinese (I think), but the claim of being a fraud is based on what, that they can't possibly manufacture their own kits and don't have the money to purchase 2M kits?
That has already been answered and filed with the SEC. First, WORX has been in business with income for several years. They stated that last month they were totally focused on creating a supply chain for their clients (over 1500 healthcare customers). They created an escrow with a 3rd Party (i.e. so as not to induce claims of fraud, mis-use, have to pay tax on it as income etc.) to pay for supplies needed up front.
They are not manufacturing the kits, but buying them from an Australian manufacturer which claims it is the only approved kit in Australia and gives the % of accuracy. This should be rising instead of falling on what appears to be a false claim of fraud. Seeking alpha prints all kinds of pump-dump articles.
I bought AH yesterday unfortunately and don't have resourcing to add to position. I'm holding and adding if I can.
Since 8K also states WORX has to pay 50% of order up front, that tells us they had at least $13M in the special 3rd party "Escrow" account before being able to place this order.
Don't know the timing of when people buy in, but looking forward to this rising as each week and each order gets placed and received. With everyone aware that hundreds of millions of tests across the country will most likely be needed over this year alone, this seems to be a huge, huge deal.
IMO
8K filed:
On April 10, 2020, concurrently with its acceptance of the Purchase Order, the Company entered into a Supply Agreement (“Supply Agreement”) with ProMedical Equipment Pty Ltd. (“Supplier”) pursuant to which the Company agreed to purchase and the Supplier agreed to supply an aggregate of 52 million COVID-19 Rapid Testing Units over a six month period, comprised of 2 million units per week, at a per unit price of $13.00, commencing April 24, 2020. Pursuant to the Supply Agreement, the Company is required to pay 50% down at the time of order placement, with the remaining 50% due upon completion of order and prior to shipping.
because now this scam is exposed.
Paul,
Hard to know what profits it will make on the orders. I listened to the Conf Call a second time and they mentioned they helped their clients acquire needed materials during SARS and H1N1, albeit on a smaller scale. I have not followed the company in the past to know what impact that had on their revenue stream.
They are researching products and creating what they believe to be reliable pipelines for products for their healthcare customers on a large scale of orders. Still not clear whether orders and shipments then become direct from supplier/manufacturer to client or somehow via WORX. Also not mentioned on the call was what revenue WORX expects or whether they charge for the service they are providing etc. So hard to know.
I'm assuming they are getting a % of the order amounts, but until the company clarifies, we don't know what a $35M order for test kits means to WORX P/L sheet.
Maybe someone can approach the company to find out.
What seems clear from call is that this is not the first time they have done something along these lines. Just that because of the massive scale of the needs in light of the pandemic, they created a new subsidiary division called "DIRECT WORX" to handle the procurement and supply chains and the escrow account etc. to be able to do what they are doing now on behalf of hospitals and healthcare systems.
It's only been filed and accepted for review. Let's wait until it's finalized as a TM.
Yes, but we have to wait to see if it all turns as rosy as it appears.
Questions:
1. Can Rethink My Healthcare truly sell 2M test kits/week?
2. How many of their customers will order test kits through them?
3. How much has been put into the "Escrow account"?
On the upside, if they truly ordered 2 million test kits and had to pay upfront or even a significant amount, that would indicate a lot of cash has been deposited.
If the 2M kits arrive and move out and they issue follow up PR that another order(s) is on the way, then I think stock will climb and hold price.
Lots of selling today across COVID-19 related stocks, some because of news that many test kits on market don't work well, some because of optimism that infection rate is declining, some because market is down etc...
Should WORX land and hold a 25% capacity of the Australian manufacturer of these test kits and order a steady stream because they have established themselves as a reliable distributor, don't know what price this rises to.
GLTA
AIMO
Final post here at least for today.
Company is Promedical Website certainly looks like legit company
Test kit is 100% Australian
(1) Accuracy (Overall aggrement) = 100 x (46+96) / 150 = 94.67%
(2) Sensitivity (Positive aggrement) = 100 X 46/ 50= 92.00%
(3) Specificity (Negative aggrement) = 100 X 96/ 100 = 96.00%
Go to Promedical website for more info.