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The Breakout is On in Progressive Care Inc
By James Hudson - August 12, 2018
OracleDispatch.com
One stock that had been a massive outperformer earlier this year, but has corrected back to a test of its 200-day simple moving average is Progressive Care Inc (OTCMKTS:RXMD). The pop to close out last week broke solidly back above the major MA’s and recent range resistance, helped along by the company’s announcement that it has paid off its convertible note to Chicago Venture Partners through an issuance of common stock.
According to the company’s most recent release, “Progressive Care drew down a tranche against the Chicago Venture note in the amount of $636,304 on February 15, 2018. The issuance of 1,974,279 shares of Progressive Care stock on August 8, 2018, brings the company to a balance of zero and the total number of issued shares to 15,503,604. The company has been working to pay down its liabilities while continuing to increase revenues and bring increased value to its shareholders.”
Progressive Care Inc (OTCMKTS:RXMD), through its subsidiary Pharmco LLC, trumpets itself as a company that provides prescription pharmaceuticals to individuals and institutions in South Florida.
The company operates a retail pharmacy that specializes in the sale of anti-retroviral medications and related patient care management; the sale and rental of durable medical equipment (DME), such as hospital beds, oxygen supplies, power wheelchairs, scooters, walkers, and other related equipment and accessories; and the supply of various prescription medications to long-term care facilities.
It also provides long-term care solutions to skilled nursing facilities, assisted living facilities, retirement centers and communities, doctors’ offices, and clinics. In addition, the company purchases, repackages, and dispenses prescription and non-prescription pharmaceutical products for its long-term care customers.
Further, it offers computerized maintenance of patient prescription histories; third-party billing; and consultant pharmacist services consisting of evaluation of monthly patient drug therapy and monitoring the institution’s drug distribution system, as well as home service and maintenance, defective product replacements, and free home installation and instruction services.
According to company materials, “Progressive Care Inc. (OTCQB:RXMD), through its subsidiaries Smart Medical Alliance, Inc. and PharmCo, LLC, is a South Florida health services organization and provider of prescription pharmaceuticals, compounded medications, provider of tele-pharmacy services, the sale of anti-retroviral medications, medication therapy management (MTM), the supply of prescription medications to long-term care facilities, administration and practice management, utilization management, quality assurance, EHR Implementation, billing and coding, and health practice risk management.”
As noted above, the stock has been consolidating for months but caught some big air to close out last week. Recent action has seen 46% piled on for shareholders of the name during the trailing week. In addition, the company has seen interest climb, with an increase in recent trading volume of 71% beyond its prior sustained average level.
“We have a long-standing relationship with Chicago Venture Partners and they have played an instrumental role in allowing Progressive Care to move forward with its expansion plans,” said S. Parikh Mars, CEO of Progressive Care. “Being able to pay off this convertible note is an exciting milestone for the company, as we can now shift our entire focus to accelerating our expansion plans.”
Note that the company will be reporting earnings next week and on call to discuss results on Tuesday, Aug. 14, 2018, at 4:30 pm ET. According to its release, there should also be some discussion by management on the call of its outlook and objectives.
Currently trading at a market capitalization of $35.8M, RXMD has a stash ($1.3M) of cash on the books, which is balanced by about $385K in total current liabilities. One should also note that debt has been growing over recent quarters.(???) RXMD is pulling in trailing 12-month revenues of $20.4M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 6.2%. You can bet we will update this one again as new information comes into view.
Disclosure: we hold no position in $RXMD, either long or short, and we have not been compensated for this article.
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