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I was frustrated a bit one time (towards the end of last year) and criticized the management. That was the only time I was negative about this company. I don't know if they are going to make it or not. At least to me, they are doing an approach that I envisioned a few years back.
They are putting more efforts on their most profitable segment of their business. They are streamlining their delivery model to service their customers. You want to deliver a big volume of prescriptions to each account (one place) instead of each home. They are trying to minimize delivery personals and service more people at the same time utilizing technologies that are available right now.
The new CEO is not taking no salary. They know what is important to be a Nasdaq company, I believe. Profits not Revenues. I don't mind not hearing news about every small move they make. RXMD should behave like just a normal Nasdaq company since they are planning to be come one. The time of Ms. Mars is over. Her approach may have helped traders but not investors.
I don't know if RXMD will be successful or not. I don't know how many competitors are out there in the 340B field. I don't know what CEO's plan future plan for RXMD is like. I may lose my money but want to see how this will turn out. I guess I am a dreamer.
Thank you Bearslayer. Then my calculation is meaningless. Sorry.
I am not familiar with SPAC. I see many opinions, pros and cons out there. Is it beneficial for existing investors? How will new shares be distributed to those who are with the company to be acquired? I thought I saw someone wrote we may get 20% of new shares. I could be wrong. I am assuming that the total number of new shares is 20 mil (assumption PE ratio based on potential revenue). I don't know what I am doing is correct here. Using PE ratio of 4. (Revenue RXMD 40mil + NXPL 10mil * 4)/$10 per share comes to 20mil shares), each RXMD investors get (share count each own/total share count of RXMD share issued) * 20mil * 20%?. I don't know how many shares actually out there right now. Assuming all AS shares have been distributed, if you own 1 mil, for example, 20mil*20%*(1mil/1bil) = 4 mil * 0.001 = 40000. 10 dollars per share means $40,000. Depending on the new share count, some may lose money, some may keep the original amount and some may still retain profit depending on the new share count, it seems. Am I correct? If this SPAC is very popular, we may get a better PE? I may be talking garbage here. Any opinions? Eventually, we need to vote when (if) SPAC is officially announced, I guess.
Thank you for a lot of great findings stockforce. Thank you for a very succinct and probable narrative MrMike. Great synergy between RXMD and NXPL. Everything is finally coming together, it seems. This is what I have been waiting for. Crossing my fingers.
It appears not toxic in nature. This looks like a mutually beneficial business relationship.
I concur. They have no intention of parting with Iliad, it seems. We are like door mats. I liked their business plans and hoped they would stop relying on lliad. They will go nowhere as long as they continue this relationship. When Ms. Mars left, that was the sign. I should have realized the significance of the event.
Thanks TD. I missed that.
I hope they can get a good deal from whatever partner they choose. Big corporations usually get better deals since they handle big volume. It is all about how to reduce the cost to be competitive. They need to find a niche. :)
James P. I think that is exactly what they are trying to do by introducing IT solutions. Their IT solutions should ease the effect of employee shortages because many things can be automated. One thing they cannot resolve is that they cannot cut drivers if they want to individually (individual homes) deliver prescriptions. The number of drivers must increase as the prescription count rises. If you deal with organizations and institutions, they could deliver prescriptions to one location, they (institutions) could distribute prescriptions internally by themselves. That is one of the reasons they prefer the 340b business, I think. They are seeking a biggest bang for the buck solution, I believe. Everyone is in the same boat. Companies that have a good solution will win. Usually, big companies have more resources to build such a technology/infrastructure fast. IMO.
My thoughts on the current situation. I have been supporting the RXMD management on decisions they have made in many cases. I don't mean to defend them. I think they must be having a difficult time in this Corona crisis. It is a tough time for small businesses as far as the labor market is concerned. You need to pay more to retain employees. We hear car driver shortages in may places, for example. RXMD need to retain drivers they have to deliver prescriptions. COVID tests are helping them, but they will not last long. RXMD have to increase prescriptions. They be working on IT solutions to maximize employee efforts in various phases of their operation. We have not seen the fruit of their transformation as an IT centric company yet. I They are modernizing their business model. I hope they will succeed. In my opinion, however, it is premature to up list to NASDAQ at this moment because the market is not good for many companies unless they have a huge plan to surprise us.
Almost all stocks that I was following went down immediately after they were uplisted. The market is not good for uplisting right now. The company may be able to raise some capital but investors will lose a lot, I think.
This is good news. They are gradually revealing their new business model. They are not ordinary retail pharmacy. Many companies are taking advantage of new service models. I hope they can increase subscriber counts by showing they can provide excellent services that go with their technology. Cautiously optimistic.
Yes, they have been trying to become a service provider in this field, I believe. They have been creating the infrastructure to support their new business model. They realized that they cannot make money just selling prescriptions. 340B is just an entry point, I think. As you can sell computer generated goods and make real money in Metaverse. (It does no cost anything to create such goods. All you need is your time and a computer.) The idea is similar. Selling services don't require any physical materials. You still need people, people to implement services, but that is all you need. Everyone is taking advantage of computer technology nowadays. RXMD has been spending money to lay the groundwork for this transformation for the last few years. I am hoping they will make a smooth transition.
Thank you stockforce for the info. They are very indicative of where they are headed.
Yes, 340B and beyond, I think. they have been shifting their focus to their service provider business from the simple prescription based retail business that barely generates profits. That is where their future lies, I think.
In other words, they are no longer a just retail pharmacy.
Armen is trying to generate profits for his business, but he is not thinking about shareholders. This could have been better if they had significant revenue increases even if leeches are hanging to the body. This is as if life energy is being sucking out of the body slowly.
The total revenue number has not increased recently. The prescription count has decreased somewhat. They seems to have moved some of prescriptions to their 340B business where they see more profitability. It increased 8%, but I would like to see higher increases. I see they are trying to generate more profits by moving towards the 340B business and doing COVID tests. It must be hard to expand business in this CORONA era. They are enduring growing pains. They are trying to come up with solutions by taking advantage of technological changes to increase profitability. It takes time for the approach to show visible results, I guess. They don't do fancy promotions, but they are trying to expand their business, I believe even though what they are doing has no immediate direct effect on the stock price.
Thank you INSTA. They tried to be a bit more informative to calm our nerves
before, but it seems they tighten thier lips shortly after filing S-1 to abide by SEQ rules. They even appeared awkwardly careful at the last converence.
You are not forced. It is still your choice, I think. Once the country gains herd immunity, you may not need to take the vaccine, but it seems it is likely enough people may need to take the vaccine every year to sustain herd immunity since Covid-19 evolves fast.
This looks huge to me. In this Corona ara, people may need to take it every year or or so to be immunized against new variants just like we do for flu. This is recurring revenue.
We had a lots of discussions on this. Please read backlogs. Many longs accepted it and voted yes. We are waiting for a successful S-1 submission result with possible big capital infusion(s). We will see.
I agree you on your assessment. Once people start seeing a steady stream of profitable quaters, things should change. RXMD is neither glamorous nor flashy, but they are solid and they are about to go nationwide steadily. A very exiting time.
We are all waiting for that day. Some people are taking advantage of uncertainty and putting up walls. RXMD is not yet strong enough to break through them with ease.
I think some people had unreasonable expection. The financial result is about what I had expected. RXMD started move upward last year. They have been under the surface for along time and are moving towards the surface at the end of last year. They will surface this year, I believe. They found a niche in the 340 buisness. They are executing their business plan and putting infrastructures in place. It takes time to generate profits. It does not happen over night, but I believe they know what they need to do to do business in this Corona area. They may not have expected Corona, but thier business model has been quite ready for this unusual situation and this will become norm from this point on. It will be great if so called NETE deal comes to fruition, but NETE or not they need to make strides and enhance areas where that they are profitable cost effectively. It's all good at this moment. IMO.
Thank you for posting, Jimmmy. I like your well organized messages always. I have more confidence in the RXMD management. I have not sold a single share since early 2016. People should be able to sell and buy as they feel appropriate. One thing that I don't like is that some people resort to scare tactics. I don't feel that I need to sell any time soon. The management has shown good decision making ability and a good business sense to determine what needs to be implemented and skill sets they need. They have been building an infrastructure that they need to transform themselves into a full service oriented organization.
It does not appear RXND's quiet period will end any time soon.
"The quiet period begins when the registration statement is made effective and lasts for 40 days after the stock begins trading. Its purpose is to create a level playing field for all investors by ensuring that everyone has access to the same information at the same time.
It’s not uncommon for the SEC to delay an IPO if a quiet period has been violated; interested parties take the process seriously as there’s a lot of money on the line."
I cannot speculate what is happening between Armen ad MS. Mars right now. I only know they doubled the revenue since I started investibg in RXMD under MS. Mars leadership. Aremen was there then and he is still here. I think they did good while they were together. I don't know if his sole inention is to use RXMD to grow his fortune. If he cannot generate profits relatively soon, it may prove that something is wrong with RXMD business model as a whole. They have to show profits once they get uplisted. If they try to uplist before showing profits, then I will be very upset. That is what I can say at this moment.
MDRESEARCH, Armen may have realized that he can no longer rely on CV and the like if he rally wants to expand his business. IMO. It seems that you tend to focus on his early records. Do you give him a creadit for his role in supporting MS. Mars, the former CEO?
TackDude, I failed to read your response. Thanks. I am thinking of the same scenario. I guess we will hear something before long. Good revenues don't do much. They need to generate healthy net profit eventually. Happy Holidays.
I know, but it is good to see that they do what they say they will. They have been consistent in that regard. They may not be able to accomplish everything, but they certainly try to accompish things they promise. That is important to boost shareholders confidence.
RXMD's apporach is to provide a total soluton to customer's medicine needs. It is interesting to see the picture that shows desks with monitores. They look like calling stations. I think they are putting more focus on their 340B business. They can provide full services to each oganization's needs. They can generate pure profits by providing services. Employees need to connect various entities to provide a total solution for 340B organizations. They don't need to deliver medicine to individual homes in the majority of cases in that way. Those organizations have a point of delivery. RXMD need a smaller number of delivery people. RXMD cannot compete with big phamacies that have many local stores. I think that RXMD is shifting their business towards a service centric model. They still need to deliver medicines, but require less people. They have been building a infrastructure by establishing connections to various entities. That is thier strength. They still need to come up with fast and reliable delievery mechanism to compete with other pharmacies. They cannot just rely on carriers to deilver their medicine. They need to respond fast. They should be hiring more delivery people as they expand thier business. If the prescription count out paces the number of new employees, they should start generating pure profits. I wonder if they are also going after commuinities that haves a central point of delivery. IMO. I am curious to know their strategy to genereate net profit. Does anyone know?
I understand your point of view. When I just put my focus on the events that took place this year, it was not so comfortable to me either. My confidence in RXMD was tested. I may be naive, but I believe one thing. That is that Armen was behind what Ms. Mars executed as the RXMD's CEO. He understands the business model that they came up with. He has established a good relationship with his community and with his employees. I don't believe he will jeapordize them now. Money cannot buy you trust as you know. It is precious. You have to earn it by showing that you are serious. Anyway, the NETE deal is whispered, but we really don't know what is going on. I believe that Armen is trying to expand his business further. He needs capital. I can imagine that he is frustrated with the current RXMD's stock price movement. RXMD needs to get out of OTC to gain access to financial resources that are not easily accessible to OTC companies, I think. IMO.
Truth022809, Originally, I had a similar concern. Who is helping whom? Armen is helping his fried Oleg using shareholders assets in this case? That was the main reason why I voted no initially. I changed my mind after having focused on the strength of engineering mentality and adptability. If RXMD can retain good engineers from the payment processing unit, they should be able to help RXMD beome a solid tele-health and service provider company. I don't know this unit's technology, but they are at least in the same computer internet technology area. They should know technologies like Blaockchain, SaaS, Cloud and so on. Even if they don't know everything, they can pick up missing pieces. It is not just what the current payment unit provides. It is rather how those engineers can help RXMD build their internet solutions. How they can synerigistically fit in the RXMD's new remote pharmacy service model (business model). If the relationship between Armen and Oleg is amicable and mutually beneficial, the deal that is whispered may help RXMD grow. Alomost all companies are investing in a remote business model in this Corona era. You need engoneers that are capabele of implemeeting a good solution. They should be able to corrobrate with their partner, the Calling DR. team to work on whatever they are building. It takes time to build a good engineering team. If you can acquire a team of good engineers, that is a fast way to get into a business field. This is just my vision though. I don't know even that is is happening or not. It remains to be seen. I took a leap of hope.
Truth022809,
I think a company also becomes SEC reporting by sumbitting S-1.
A company becomes subject to the Reporting Requirements by filing an "Exchange Act Section 12 registration statement on either Form 10 or Form 8-A. A Section 12 registration statement may be filed voluntarily or per statutory requirement if the issuer’s securities are held by either (i) 2,000 persons or (ii) 500 persons who are not accredited investors and where the issuer’s total assets exceed $10 million. In addition, companies that file a Form S-1 registration statement under the Securities Act of 1933, as amended (“Securities Act”) become subject to Reporting Requirement; however, such obligation becomes voluntary in any fiscal year at the beginning of which the company has fewer 300 shareholders."
I think they will be SEC current. Companies that file a Form S-1 registration statement under the Securities Act of 1933, as amended (“Securities Act”) become subject to Reporting Requirement;
Crossing my fingers. :)
To approve an amendment to Progressive Care's Certificate of Incorporation to opt-out of Section 203 of the Delaware Corporate Law
My understanding is the that the Confidential S-1 filing should give analysts and potential institutional investors a chance to view RXMD's offering before it becomes public. If feedback from SEC and those institutions are not positive, RXMD can withdraw the S-1. No uplsting, No RS. If institutions see good things, the price may rise.
I have been thinking about pros and cons. I have been supporting RXMD management decisions until I saw the RS proposal. Even MARS depature did not change my mind because MRAS was not the owner. She could do what she did because she had Armen's support. I believe they have executed their business plan very well under difficult conditions until now. 1/300 is a huge potential reverse split. It is hard to swallow. I have voted No to all, but I am reconsidering that decision. I cannot do anything about what MMs would do anyway. I have trusted them for a long time. We, shareholders and RXMD should work together as I said in one of my messages. They need to get rid of convertibles. They need better financial environment. I want them to grow to reach real profitability. I want them to be successful. I don't promote pumps and dumps. I have never done so. They need our help right now. I may be a naive investor. They need capital. This RS should give them a healthier financial backbone. I am voting FOR. I like what they have done so far. They more than doubled thier revenues since I saw them almost 5 years ago. I don't think they will do something harmful to thier business. They have employees to protect. RXMD is not a pump and dump company. You know the real sticking point to me was NETE, but not 1/300. I don't know how NETE could help RXMD. I don't know if NETE is involved or not. I don't know how thier payment system could could help RXMD immediately. It takes long time to two organizations to mix. I just don't want this to end up in Armen just buying friend's leftover assets from NETE. I just need to trust Armen on this. Eventually, IT/software people are versatile, NETE developers from their payment system should be able to contribute RXMD tele-medicine business even if that is happening right now, I guess. I guess I want to see the next stage of thier RXMD business development. As an software engineer myself, I can say this you can trust engeneers. :) We always try to make our best efforts.