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I'd be most concerned about the future of the stock if Armen had indeed been disclosing material information in private conversations with certain shareholders.
Wait for prices below .8
One or two more days downward pressure and the OTC herd will push it down to these levels and perhaps much lower.
Their core pharmacy business has been a financial failure. Perfectionism and obsession with rating scores, pampering patients with an abundance of free-of-charge services and other fancy extras, has led to a sizable overhead in operations which is impossible to sustain with the slim margins of pharmacies and unpredictable PBM fees.
As a result, expansion moves at snail pace. Funds have always been scarce and locations require lengthy development until the full scale of their pharmacy model with entangled services has been deployed.
ClearMetrX, Therapeutics, Smart Medical Alliance, Covid-19 testing etc. have all been born out of sheer necessity after realizing how bloated and financially vulnerable their pharmacy model truly is. As a consequence, the company has become increasingly fragmented and unfocused. Juggling too many balls at once with a lack of cash and staff rarely has a happy end.
That's correct. Organic share price appreciation with an organic reverse split. 100+:1.
What qualifies them to offer big data consultant services with ClearMetrX? Last time I checked, they haven't figured out themselves how to sufficiently optimize operations to bank a profit.
Who has the relevant expertise? Show us the specialist team you've recruited (or not) for the heavy data crunching, Armen. All I ever see are photos of the same old handful of executives, none of which have the required background.
Let me refresh your memory why Armen and Alan J. W. are ticking bombs:
Progressive Care Enters into Letter of Intent to Acquire Telehealth Service Provider MyApps Corp.
To the horror of all stockholders, Armen agreed to put $10.2M on the table for MyApps, a $1M generating Kickstarter-funded start-up, and Alan J. reasoned:
I sense a rhetorical question.
Even if, against all odds, RXMD makes it to the NASDAQ with no vital organs pierced, and Armen flushes his preferred shares and transitions power peacefully to a shiny new leader right before the share price launches into the stratosphere, then still, any shareholder should critically self-reflect: Were these capital gains the result of prudent risk management?
With "great team" you refer to the fleet of employees?
I can't think of any single reputable industry veteran they ever hired who is knee-deep involved in steering daily operations.
Indeed. I'm also eagerly awaiting news on the pending reverse split. Will the ratio be 100:1 or closer to 200:1? It all depends on how sharp the share price will nosedive once this absurd run is drying up.
Would you mind sharing with the community how you evaluated this fair price? Where in your equation are you taking Armen into account?
$40M annual revenue is a commendable achievement. Nevertheless, I wouldn't touch this stock with a ten-foot pole until Armen and Alan Jay Weisberg have passed on control to a leader with a pristine reputation and experience to grow a healthcare business on a national scale. They had the opportunity of a lifetime to bring on board this caliber of a CEO but opted for what feels like nepotism instead. How are shareholders supposed to envision life on NASDAQ with this arrangement?
To top it off, Armen Karapetyan remains barred for life from associating with any FINRA member, yet is the controlling shareholder with 51 preferred shares. How will the stigma of his disciplinary records affect their pending plans to uplist and the future of the company at large?
Armen Karapetyan sanctioned for life by FINRA. Case #2009016158001
Close to $100M market cap for a regional, non-profitable pharmacy business with a handful of locations operating at near capacity due to logistical and physical constraints? None of their other arms are generating any meaningful revenue.
How is RXMD supposed to deploy their business model at that speed across the country before the end of the century without diluting shareholders into oblivion?
I agree, this board is unlike most others. Great vibes, lots of solid information and a surprisingly strong self-regulation.
Sure enough. He's a great contributor on this board and I hope he will continue sharing his research. I was merely asking for more balance and less persuasion in his posts.
Your dilemma is that ever since Shital hinted at an alternative non-RS transaction to uplist to NASDAQ, you've invested a great amount of time to connect the dots between NETE and RXMD. With more and more research time spent, willingness to challenge your own hypothesis diminishes. Welcome confirmation bias.
Your theory is not as clear-cut as you are convinced it is. It might be plausible, but still warrants enough skepticism for your posts to reflect that with some humility.
Ms. Mars was never mentioned in the call except for "Jay's" empty phrases at the beginning. They didn't use the S-1 as excuse for not commenting on her departure. If anything, they probably chose to not address her because of the private nature of her departure (if she's indeed pregnant).
stockforce, there is now legitimate doubt about Ms Mars' resignation being linked to a merger in any shape or form. That theory had gaps from the get-go and with each passing day odds dwindle that it will hold as you see it. Unless you have insider knowledge, it would be prudent to keep a healthy distance from your theory instead of bending things until they seemingly fit. Your fellow shareholders and people observing the stock may act on these enticing outlooks with substantial stock purchases.
She's pregnant. No doubt.
Read her Facebook post from April:
https://m.facebook.com/story.php?story_fbid=521529318735439&id=253459202209120
Time to conclude she left for personal reasons.
We have some great observers on this board who seem to catch the smallest details in communication. I do hope though that everyone keeps their expectations in check with regards to a merger and Mars' resignation connected to it. All we know with certainty is:
1. They are working on the S-1 --> Status unknown.
2. Mars has resigned --> Reason unknown.
It can happen all too quickly that you fall in love with your hypotheses and consciously or unconsciously filter facts such that they confirm your assumptions. No matter how logical or obvious something appears to be, it might still not be true.
Let's not forget that only last year, out of the blue, we received the news that Ms. Mars was critically ill. We only learned of that after she had fully recovered and was back at work. In all that time, there hasn't been a single telltale sign of an internal crisis. To me that was an eye-opener in the sense that that even at RXMD things are rarely what they seem.
What I am trying to say is that the much-vaunted transparency of our managers is in many ways a well-intentioned illusion, which in reality provides us with a negligible plus of real transparency compared to more taciturn executives.
Mars was a first-class communicator. She always seemed authentic, approachable and empathetic, and it felt natural to follow her lead, even when the share price and operating results were again stuck in the mud for months on end. Which parts of her calls were merely professional show can hardly be determined anymore. Nor will we ever know which interpersonal tensions she had to deal with in the company. Nothing will surprise me at this point and I highly doubt her resignation was an act of coordinated pre-merger move.
Anything can happen in two weeks.
Your due diligence has been top notch and I agree with your analysis that a merger is about to be announced.
I'm less optimistic about the circumstances of Mars' departure. I can't recall I've ever witnessed a merger in which the CEO resigned before the merger was announced publicly and without any reference to it. Usually the agreement details all the personnel changes. So why leave in advance?
I also find it weird that Mars wasn't offered another executive role. It's one thing to step down as CEO, but a person so capable and supposedly attached to the company could have been offered the position of COO or an equivalent.
All of that to me hints at a disagreement as reason for her resignation.
Hoping for the best today.
I have the unsettling feeling that Mars' departure may not be related to a potential merger the way we think. The sequence of events doesn't make much sense for me.
Why would she resign before the merger is closed? An agreement could easily stipulate that upon closing the current CEO will resign and Oleg Fierer or whoever will become the new CEO. I see no need for Mars to rush ahead and resign prematurely. To me, this unexpected resignation has the flavor of a clash behind closed curtains.
I sure hope you guys are right and this is just the scripted interlude for the NETE merger, but my gut feeling says otherwise...
Mars has addressed the RS dilemma more often than I am willing to count. As a CEO driven to play on the same stage as the big boys, you can't afford to act as nanny for shareholders with little resilience against the everyday fear mongering online. Fact is this dedicated release was 100% redundant and brought no perceptible relief. To me it had that awkward flavor of inexperience. Stand above the online chatter for god sake.
I believe Mrs. Mars is an authentic leader with good intentions and great work ethics. None the less, she's still young and not an industry veteran. Now and again it becomes apparent.
What does this reveal? Weakness. Defensiveness. Vulnerability. These releases defeat their purposes. A company which feels the need to shoot at chat room rumors over and over needs to learn composure.
The outcome is that our CEO has tightened the association of a reverse split with Progressive Care's future. Thank you, Mrs. Mars.
Very plausible.
This is hands down the worst investment I've ever made. I hate to admit it but Damaj could indeed be the scammer he was suspected to be by many.
This guy should never again be allowed to run a publicly traded company.
I doubt this is the Akorn product coming. They received approval just a few weeks ago and it takes time to ship the product.
Besides, Innovus had already placed a reorder in February with Westward. I guess it's their product coming in now although it took frighteningly long.
Ultimately, I don't know what led to the supply shortage in all of June. Nothing makes sense to me given what I mentioned above.
No it hasn't. They had no supply on Amazon for an entire month or so. Still this presale shit. They really messed up here.
Is that number accurate?
How did they reduce OS? Buybacks?
I've averaged down to ~$4.30. I'm convinced we will see a reversal in the next months. The current valuation is completely disassociated from fundamentals.
Exactly. That's why you ride it out and hold tight to your shares. Makes no sense whatsoever.
I'm relieved to see you can convert between pre- and post-split levels. Well done Jb!
Man it's getting pathetic. Grow up and spare us from those wussy comments. They add absolutely nothing of value.
What is stupid about adding ANDA drugs to our pipeline? Much better than another supplement for undefined indications. Those eat into our marketing budget the most. Drugs sell easier, because people who need them often already take or know the active ingredient. But who knows Diabasens and the ingredients and their efficacy? A lot of dollars go into establishing such brands.
I'm indeed deeply irritated that I don't share the opinion of a whopping four or five disgruntled shareholders on this board of a total of 30,000 shareholders out there. Lmao
I rarely if ever share what I vote for.
Either way, any democratic vote is to be respected whereas misusing discussion platforms for defamation and racial slurs is clearly not.
What makes you think the share price would be higher without the RS?
In your next life make 110,000 posts less and you may have the time to do some real DD and understand this market. How absurd to think this PR is fluff.
I stand corrected. There is at least one non-standard metered spray design for a ready-made fluticasone nasal spray:
https://www.xhance.com/
mynah, you are welcome.
I'm not familiar with the Afrin dispenser, but Innovus has no say in which dispenser to use. This is dictated by the ANDA holding manufacturer (Westward, GSK, Apotex or in our case Akorn) and what they got approved by the FDA. All four manufacturers use similar pump spray designs so you won't find a ready-made fluticasone proprionate nasal spray (be it RX and OTC) on the shelves with an non-standard dispenser. Admittedly, Flonase's dispenser has a distinct look, but is still a normal pump spray.
mynah, of course it works. As an FDA approved generic and now an approved OTC medication, bioequivalance to Flonase needed to be proven. If Flonase works, our product does, too. Of course, there will be minor differences in the formulation and spray design.
While no one has any deeper knowledge of management's strategy I believe it's evident that they are trying to sell out their current batch before it expires Aug 2019. They also use competitive pricing to get FlutiCare in as many noses during allergy season as possible. Remember, we are late to the game and need to make up lost ground. Furthermore pricing has brought FlutiCare to the top rank right after Flonase in the fluticasone nasal spray category. It has garnered a very high number of reviews in only 18 months and is now perceived as a major fluticasone brand on Amazon.
In a sense, they sacrificed profits of the first batch to establish the brand.
Thank you Roland. Do you provide IR services to Innovus? Care to reply one last time? Thanks.