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How to Value an Independent Pharmacy:
http://www.ncpa.co/pdf/APNOV12-HowMuchWorth.pdf
https://www.rjhedges.com/blog/how-to-value-independent-pharmacy
I think some here will be shocked to learn that Pharmco is worth much more than the current thinking is.
There are a variety of ways to value the business but as you can see prescription count and inventory are huge. Sales is huge.
Other Factors
Although tangible and intangible are essential to a valuation, they aren’t the only factors to consider. Here are some important questions to ask, especially from a buyer’s standpoint:
- Are the pharmacy’s sales growing? Though it’s important to consider a pharmacy’s historical performance instead of focusing on potential, don’t forget to look for a trend. If sales are increasing, decreasing, or stagnant, that impacts the value of the pharmacy.
- Is the pharmacy overly reliant on a customer? Whether it’s a customer, referral source, or a single payer, be wary of the situation.
- What condition is the building in? If the pharmacy is going to need remodeled in the near future, that should absolutely impact its value.
- How is the local economy/community? The future performance of a pharmacy is tied to its location. Whether it’s stagnant, growing, or declining, it’s smart to be aware of the trend.
- Is it a compounding pharmacy? Facilities that meet USP <800> Hazardous Drugs requirements and that complete sterile compounding utilize personal protective equipment (PPE), compounding hoods, and other expensive pieces that can greatly impact the valuation.
For those who will see Mars in person let me know if she's as hot in person as she is in her pictures.
My favorite part of the call today was when Mars talked about how they're not the traditional 'Pharmacy'. That they're much more than that. They really want to make sure people understand how to differentiate a typical pharmacy and what they do. This is the key in understanding the big picture investment. It isn't just a CVS it's literally a healthcare and tech company.
Thanks guys. Just trying to understand if those who don't vote get weighted into the overall vote. From my research non votes don't affect anything since it proportional to those who vote.
Anyone know how the proxy vote works? Is it proportional to those who respond?
For example, does a no-vote factor into the results?
Or do they just focus on those who voted and go from there?
That's what I said in my post. You didn't answer why RXMD isn't falling to trips though if it's just like every other OTC stock.
That's painting too broad a brush. This isn't in trips nor was it ever in trips. So even though it's on the OTC there technically are better run companies. I've seen stocks in trips with no bid for years. You're saying that's the same as RXMD who has actually held a base and increased it over years? We used to be at .0049... now it's at .04 cents...
Because that's what stocks on the OTC do. They go on runs and then fall until the next run. That's why you saying this will be in .03s is like an NBA pro saying he'll make a 2 pointer. It's common sense and it's easy to predict.
Where you're wrong is thinking it has to do with fundamentals lol.
Until RXMD uplists it will be a low volume up and down play. MMs run it like this. It's not hard to tell.
Sounds like you don't know how the OTC works.
Looks like you don't understand the concept of company valuation.
Anything is possible. But typically for a buyout to happen the company has to be under performing. You would see directors leaving. You would see cost controls and many other hints.
As of right now I don't see it happening. I think they want to be THE ACQUIRER and not the ACQUIRED. They're going big or going home.
You do realize how easy of a prediction that is right? Everyone knows the OTC runs on volume. So if you have low volume of course the stock price goes down.
What you're not saying is the context and reasoning you used to justify your price predictions.
You said it was fundamentally related. Which is wrong. So yeah go collect your reward for predicting low volume price declines. But just remember you're not correct on fundamentals.
The stock hasn't been this oversold since 2015. We will bounce here very easily. Traders had their fun with the long term .045 line and stop limits. Now MMs will take this one up in my opinion. Just ping ponging in a range until further volume and news for a new trend direction. Long term investors don't give one F about any of this and they shouldn't. In it for the long haul.
Profitability for an expansion M&A mode company sometimes comes later. As a growth company they are spending to expand and then those synergies will translate to more profitability. So it's not a question of less expenses. It's just a simple fact that they are expanding first and that comes with a short term cost. There was a Harvard study that showed expansion first is a better method in many cases than trying to focus on the quarter to quarter profit. You have to remember this is considered a nano cap stock. So we're grappling with profitability on a nano cap stock? Really? They have to grow first.
As the saying goes: "see the forest for the trees"
AKA: To discern an overall pattern from a mass of detail; to see the big picture, or the broader, more general situation.
Everyone focuses on small stuff but can't see the big picture.
No I mean everything. Independent board members (DONE), 3 years audited fins (DONE), communication on key timelines (DONE), not rushing to uplist but rather expanding some first and then doing it.
There's a lot more to uplisting correctly than just RS or filings. There's an entire structure and backend framework they are working to get right first.
And like I say everything they said they would do they did.
So although this is my opinion it's an educated opinion based on factual things the company has already done.
Some people treat this company as just another drop in the bucket. But the underlying details show they're in different class altogether.
Everything so far suggests they will uplist correctly. So what's your point?
That's false and misleading. I have data and case studies to back up successful uplisting. If done correctly and not rushed uplisting can provide a very nice return post uplisting. But the key is to do it right. The companies that just uplist without any strategy are the ones that fall flat on their face. Which is what the company has been saying for a while. They are going to do it at the right moment. Again you have to stop putting RXMD in the same bucket as other RS or other uplisting stories. That's apples and oranges. And there's a good chance they won't RS. RS doesn't have to be a bad word. You guys just put everything in the same bucket which is childish.
Still doesn't prove anything. Sure there are plenty of pump OTC plays that are popular. I don't want a trader's penny stock or a pump play. I want a long term play. And sometimes a long term plays takes a while for the thesis to work out. Not having the filing status doesn't prove anything. You can't connect volume to reporting status without proof. Using one variable is not proof.
See that's your problem. You expect this stock to act like a stock on Nasdaq or S&P.
It's not at that point yet. When you're on the OTC you have low volume. So the moves are insignificant.
You're focusing on the day to day too much.
We're not a big board stock yet.
Where does it say in a text book that 5 years is too long? They are making the right decision per the business.
Companies can afford to do a lot of things but you still have to make the right decision at the present moment. How do you go from not spending on something to, that must equal it's a scam? Talk about a stretch.
I also noticed the company is generating way more revenue with less costs overall. So they are becoming more and more efficient. Good news in a strong company.
Good to see you guys too. Hope everyone is having a good summer. It's awesome to see this company expansion unfold. Miles away from where they were just 2 years ago. With people removing risk from the big board markets they will flock to these types of investments that have more upside and less risk.
Uptrend has started again after an amazing call and Q. It's easy to see the floor is now in. In my opinion 5 cents is equivalent to when the stock was at .005. There is no more downside to this company after all of the expansion and successes. Today's prices are a steal if I've ever seen one.
All of these prices are buying opportunities. But yes right now we are actually very oversold. This will bounce soon for those watching closely.
When the big announcement comes there will be no time to buy in. That's why the smart people are positioning ahead of everything.
You didn't understand or read a word I said apparently.
You haven't been reading the details then. The reasoning behind the PPS is what I disagree with. Anyone can say the stock price was going to go down especially on no volume. That goes without saying. His argument though is false that it's going down because of business fundamentals. This is false. So no he wasn't right. Intelligent investors know any stock price that moves WITHOUT BEAR OR BULL CATALYSTS AND SUFFICIENT VOLUME ARE INSIGNIFICANT.
So yes we're lower but it's on no catalysts or volume. So it doesn't mean anything..
Everyone knows that stocks on OTC need catalysts to move. So why is it surprising to anyone that we're in this in between area where nothing is happening.
Walgreens and CVS are closing stores all around the country. Meanwhile Progressive Care is opening stores. One business model focuses on greeting cards and candy, the other focuses on being a technology/healthcare services provider. The better business model is winning.
One of the underrated bullish catalysts I see coming is changes to how Progressive Care gets reimbursed. I actually think this gets more stable and more clarity is given. I also see less fear in the markets about a 2020 election wiping out healthcare/pharma companies.
Whether they stay local or go national they are providing rich services to customers at the end of the day. And there will be demand for them because of their culture, customer service and quality care. They also stay on the cutting edge of where the industry is going.
If only it was that simple. You're talking about a stock on the OTC. A company expanding first and managing stock price as they get bigger. Everything is volume driven on the OTC. Once you get to the big boards then we can talk about share price. By the way. I bought at .005 3 years ago. Stock price = 5.6 cents. Over 10x return. Next...
So a CEO is going to put a multi million dollar business at stake and their reputation on the line just to appease shareholders and create a ruse? Where's the logic in that? As a serious business owner and presumably investor why would that make any sense to anyone?
If the vote happens and they turn down the AS increase then what are you going to say? Assume 1 year from now they still don't increase it. Then what? At what point will you admit you're wrong?
This would mean you believe the shareholder meeting is one big ruse? There's no logic to that.
You're confusing a 1 billion dollar company with a small start-up making acquisitions. Don't let some of these guys make you think there's dilution or toxic debt. Those words are used to increase emotional responses.
They already explained on numerous calls that they can pay for the loans in cash but are selective when doing this because cash is king especially as a smaller company looking to expand. They need cash on the books in order to craft their agreements in a more advantageous way and also it's obviously a calculation for shareholder value.
All of what RXMD has been doing is normal standards of business and I would even say they've went above and beyond what the typical company this size would do.
Most small companies don't put clauses in the loan agreement to make sure shares aren't dumped. There are volume restrictions. This is unheard of.
Most small companies aren't mindful of the shareholder when entering into these agreements. RXMD has stuck with shareholders along the way, increased shareholder value AND have been able to fund their expansion.
Not one insider has sold any shares. Which means they know, like all of us longs, that this stock price is going higher. The company is worth a hell of lot more.
RS will not happen. Again this is a typical tactic/emotional response word.
I'm not big on technicals but the last time this had a golden cross was on March 1. It then ran almost 2 cents to just about 8 cents.
This is about to do the same thing. Like literally this week or next. I see 7-8 cents short term and more towards fall/winter. If I'm wrong I'm wrong. But this is just a fun guess short term.
Here's what I think will happen. Obvious double bottom because shorts couldn't push it down anymore.
So it goes up:
It was oversold to the point where shorts had to close out...
And yet with years of speculation on an RS and who or can't vote on one it hasn't been proposed or tried. That's the only piece of evidence that matters. It hasn't happened. How do you explain that?
I haven't seen one post on here talking about this being oversold on Friday. That's why this reversed. It was oversold....
Thanks stockforce. I don't know of any other small cap holding an actual shareholder meeting. These guys are way ahead of the game. They're operating like a big board company without being on the big boards yet. That tells me that any uplisting that occurs in the near future will be very successful.
Market cap has still grown considerably. They've raised capital and at the same time grew their market cap. So your argument is useless.
You guys use the PPS as the only source to make your point. Which is laughable. They have a long term plan which is the real story of RXMD. Not the day to day PPS.
If you're going to live and die by the PPS you guys need to be prepared when it goes up.
Oversold pop
A simple question to you. Why would Armen cannibalize the company for his own interest? That argument makes no sense. Don't you think they want to go to the big boards and trade with more volume? I don't know of any owner or manager who wouldn't want that. So this notion that it's all about him is ridiculous because at some point you have to grow bigger.