ScripsAmerica Inc. (SCRCQ)

[coolerheadsprevail]

ScripsAmerica, Inc.(OTCMKTS:SCRC) is a typical development stage company with $1.200million cash and total assets of $7.335million. The company has total liabilities of $5.276 million resulting in negative equity. SCRC trading in red yet continues to trade in impressive volume, however does not seem to be moving anywhere close to its earlier position in the near future.

Considering the fundamentals its market capitalization of $24.04 million is clearly overstated.

Interesting read, thanks for sharing tut… …the excerpts above gave me an initial “WTF???” reaction due to the following reasons, so I would be interested in your thoughts on what the author may be trying to say?

(1)
I have not verified the accuracy of the numbers via the Q, but simply using the author’s numbers, how in the world does he arrive at negative equity? By definition, if assets exceed liabilities, the difference is POSITIVE equity…

(2)
Is the author saying that SCRC is OVER-valued at a $24M market cap? Based on approx 137M O/S, this is only a sp of .175 (which jives with where the sp was at based on the date his article was written)… …so is he saying that at .175, which represents only a 4x multiple based on annualized Q3’14-Q4’14 earnings, is already too much??? 4x is too high a multiple??? Strange… …would have been nice if he explained the basis of his opinion…