Progressive Care (RXMD) - A March Towards The NASDAQ
JohnCM - Minerscorner Analytics' Blog
small-cap, gold & precious metals
by Seeking Alpha
Jun. 2, 2018 8:05 AM ET
Summary
Company has laid out plans to up-list.
Expansion plans realized.
Building another, higher base.
If you are a stockholder in RXMD you have both enjoyed and felt pain from a wild ride of late. Over the past couple of years, we have seen a beautiful chart ascent up to 6 cents, only to see the stock settle and bounce off of one penny. For a long period of time RXMD was stuck in a trading range of $0.015 to $0.025. Then, predictably, RXMD caught fire. The stock chart pushed up to RSI (14) 90 and topped out at 27 cents.
Expectantly, the stock since has settled. We had to find another, newer area of support. Thankfully, we found it. You see, on the previous settling in share price, the bleed was very slow. RXMD meandered lower until longs were fit to be tied at one penny! If you were still owning shares at that level, my hemp hat is off to you!
Thankfully, the stock subsequently found support at one penny. Recently, the search took place in a much shorter period of time. The stock price touched 6's and those who were keen enough, bought up these stray shares.
Our new base is now $0.07. The previous base was $0.01. Higher lows and a 700% improvement yielding a 7 bagger!
So, what now?
Positives -
Financials are fully audited.
The company is still running close to break even, depending on which quarter you are looking at.
Revenues are increasing.
New technologies and equipment is being employed.
New marketing/awareness measures are in place.
A second location has been found.
Negatives -
The bonus of company shares that was delivered to ownership, management and directors recently was very concerning. 40M shares or 10% of outstanding was doled out. RXMD Is left with only 60M shares under the authorized number of 500M.
Margin erosion. I will be looking forward to the next quarterly to see how they track in sequential quarterly reports.
NASDAQ
Now on to the announcement that the NASDAQ is in the sights of management. That is actually a noble endeavor for this company. If they are confident enough to anticipate being NASDAQ listing compliant, that means Progressive Care has a shot at achieving the status of being a legitimate company that does not belong on the pink sheets, over the counter market (currently OTCQB).
I believe management is looking at up-listing in approximately 18 months (12 months is too ambitious in my estimation).
Here is the catch. Will RXMD be able to operate under its current share structure until that time? I hope so. In 18 months, when the big day is here, management will have everything in place to up-list except for one important measure, share price. The share price must be at $4.00 or higher.
In 18 months, I predict the share price will be at $0.35. So, we would be looking at a 1 for 15 split. If you hold 1,000,000 shares at that time, you would end up with 66,667 shares at a share price of $5.25.
My plan? I have been an investor for almost 3 years. I plan to hold and accumulate shares for the next 12 months.
I do not intent to hold RXMD shares as the company up-lists to the NASDAQ. My options for investments on the NASDAQ and NYSE are substantial and would probably not include Progressive Care.
Disclosure: I am/we are long RXMD.
