ScripsAmerica Inc. (SCRCQ)

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I personally think that the OCT "approved orders" number is the single most important monthly PR SCRC will issue as it will represent the first complete month in the post-insurance restriction market for compounded Rx's. This is the first obstacle that SCRC needs to overcome.

The second obstacle, IMO, is to be able to report positive earnings for the first time in the upcoming Q3 10Q. As I have opined on several occassions previously, I believe SCRC should be able to do this.

The third obstacle, IMO, is to be able to report either flat or growing Main Ave "approved orders" during the month of JAN-2015 (to be reported in early-FEB), as 1/1/15 is the final conversion date for the largest employers to implement the new insurance coverage restrictions on compounded Rx's. So JAN-2015 represents the first full month of 100% employer/employee compliance with the new insurance coverage rules.

The fourth and final obstacle, IMO, is to be able to file an AUDITED (remember, the Q's during 2013 have all been UN-audited) 10K next APR-2015 that shows that not only are all the revenues and "approved orders" that have been previously PR'd and reported for Main Ave legit, BUT also that SCRC has applied the VIE accounting rules properly. Variable Interest Entity (VIE) accounting has been a growing hot-button issue in the marketplace over the past year and has caused heartburn to many retail investors as an increasing number of companies who assert that certain 3rd parties are VIE's and therefore qualify to have ALL of their numbers 100% consolidated together, are subsequently being told by their auditors that their VIE determination was improper -- and requiring the company to restate prior period financials effectively wiping out the lion's share of reported revenues. One recent example of this is EWSI. Not pretty. SCRC declaring Main Ave to be a VIE (via Implex) is what has enabled SCRC to claim ALL of Main Ave's revenues as its own even though SCRC does NOT own Main Ave and the only legal relationship w/Main Ave is that SCRC is supposed to only receive a monthly mgmt fee for running the ops of Main Ave.

If SCRC can demonstrate that its Main Ave revenues (not to mention United Apothecary and Jungle Jim's revenues) are NOT materially impacted by the new insurance coverage restrictions AND that it has properly applied the VIE rules, then I would be absolutely stunned if the market continued to treat SCRC as an unwanted stepchild.

I began advising folks of the above obstacles back last summer, with the above being the most recent post from last OCT’14. I had opined that as each obstacle was overcome, more and more potential buyers who were currently on the sideline would begin seeing the inherent investment risk w/SCRC start to subside, and they would slowly begin buying in, with more buyers as each successive obstacle was overcome.

SCRC passed the first obstacle, then the second obstacle, and as we saw, buyers began coming in once the results became publicized at the investor conference and picked up by analysts (of course, being touted by penny stock newsletters only helped spread the word as well).

Considering that SCRC has been dead money for investors for practically the entire year due to the dilution caused primarily by the 22M shares of .05 PIPE stock held by JOSEPH ZAMPETTI and his fellow criminal CORE PIPE-holders, the advice that I and a few others gave over a year ago to wait and not rush in has proven to be correct. In addition, over a year ago when the sp was beginning to spiral down from .42 during Q4’13 when the 6M shares of FREE stock that SCRC paid to JOEY Z and his criminal CORE to orchestrate the epic P&D unlocked, I had posted my one and only recommendation here, which was that, IMO, the risk-reward became acceptable only if the sp came down to .12 or lower (w/the rationale being that I did not believe that the all-time low of .081 would be breached, thereby making the theoretical max loss only 33%). Those who exercised discipline and patience not only saved themselves much opportunity cost, but are also now reaping the benefits of staying true to the SEC filings and ignoring the toxic kool-aid being served daily by JOEY Z and his CORE.

That being said, the RSI is really starting to heat up now, but all other indicators remain very bullish. Understand that here in pennyland, there are actually very few players who actually hold shares for the long-term, so don’t be fooled into thinking that those around you will hold their shares -- or are even buying -- REGARDLESS of what they say publicly.

As I’ve been saying for a long long time now, the trend is your friend, and play any run (such as this one) as far as it will take you – BUT, be vigilant and babysit this stock closely, because once the indicators begin showing that the steam is starting to run out, you will need to act fast. Remember, scale in and out rather than move all-on and all-out at once. Take periodic profits off the table to de-risk, then re-load on any dips if you are so inclined to re-invest it back into SCRC.

I do not believe that we should ever see sub-.10’s again, as SCRC actually has substantial revenues supporting it now. But a penny stock is a penny stock, and the higher this run takes us, the bigger the re-trace when it does happen. And it WILL happen. Nothing goes up forever and every stock requires periodic breathers.

Stay smart. Ignore the hype. Make money.

Continued GLTA…