ScripsAmerica Inc. (SCRCQ)

[coolerheadsprevail]

Judging exclusively from past performance alone (if that's any indicator) not only will it surpass $2MM, but it will come very close to (if not slightly exceed) $3MM. I honestly believe that.

Wow. To hit $3M from $1.6M, that represents an 88% increase from MAY. The increase from MAR to APR was 94% and the increase from APR to MAY was 67%. I know that Bsav and I both agreed that SCRC should be able to hit $3M per month from Main Ave by the end of the year, so if we could actually hit it for JUN, then that would be a welcome surprise. No one can see the future, but seeing an extra $1.4M on top of the existing $1.6M (which was a record already) would seem too good to be true. But I am hoping along with you that you are right!

Typically, growth rates don’t jump back up once they continue their downturn. Part of it is simply due to the fact that for each dollar you grow, that same percentage equates to “more” dollars the next time you run a growth comparison. Similarly, the same dollars equate to a smaller percentage growth.

This makes me think that the fastest and the most cost-effective way for SCRC to grow its compounding business is NOT to acquire more pharmacies (as these are capital intensive and we were very fortunate to find one like Main Ave whose owner was motivated to sell). Rather, it would seem that if topical creams are not only in high demand but very profitable, then SCRC should focus on obtaining licenses in as many additional states as possible. From what I understand Main Ave is currently only licensed to fill prescriptions in 7 states. So getting more states in the fold would be a realistic way to counter-act the percentage growth decline as opening up a new state every month or every quarter would be like blowing a gust of wind into SCRC’s sails to give the growth rate a substantial uplift every so often.

And by growing the compounding business organically as opposed to via M&A, the costs are quite minimal: Aside from the costs of applying and obtaining each state license, there may be minimal marketing costs but I would suspect that this would be included in the work the salespeople would be doing already. This organic growth path would seem to provide the greatest ROI opportunity for SCRC.