ScripsAmerica Inc. (SCRCQ)

[coolerheadsprevail]

If the potential is real and comes to fruition there will be a lot of money to be made,, the share count and float vs potential are reltively minor issue

Bingo. That is what I have been saying for a long time now. In the history of the market, stocks have only been able to maintain gains and grow in meaningful ways IF they are able to demonstrate to the market that they can successfully execute their business model consistently over time. Hard work w/proven results is what will lead SCRC -- and loyal shareholders -- to a prosperoud long-term future, NOT short-term P&D's and tricks to lure retail sheep.

My posts have never been about the long-term viability of SCRC. I think claims of SCRC becoming a world-beater are laughably over-blown, but when you are this small of a company, you don't have to be a world-beater to be successful. I believe SCRC can find its niche, plant its flag on a small piece of real estate and do very well for a long time. So I've never debated and have no interest in debating the long-term merits of SCRC.

My concerns have ALWAYS been around entry/exit points, keeping avg costs down, and de-risking when possible. I don't care if people decide to hold, trade, or sell their shares; my concern is to enable investors to make well-reasoned decisions based upon facts.

And the current facts are that the multiple waves of dilution that have hit have devastated the sp. I would suggest that those shareholders who were invited to buy "cheapies at .30" all the way down to "more cheapies at .20" at the beginning and throughout the duration of the first two tranches of free restricted shares hitting the float on 11/1 and 12/6 would not share your view that this is a "relatively minor issue". Pennies are material in pennyland.

There has never been a sense of immediacy with SCRC over the past couple of months the way that the paid promoters and Section 17(b) violaters per the Q's would want investors to believe. With the avalance of dilution that is clear as day for all to see in the Q's (problem is, most retail sheep don't read the Q's and blindly trust those who have invited them here), I would challenge anyone to present any investment thesis that involves ignoring upcoming and currently unfolding dilution and to buy-buy-buy and hold-hold-hold, rather than exercise patience and discipline and wait for more attractive entry points.

Clearly, those who waited and bought the tons of shares that were bid-whacked in the .10-12 range will almost triple their investment by the time those who were invited to buy "cheapies at .30" will even get their heads back above water. Even those who bought "cheapies at .20" will have to sit and watch the disciplined investors who bought at .10-12 double-up before they get out of the red as well.

The only entities and individuals who have anything to gain from encouraging anyone to "BUY NOW" and "HOLD, DON'T SELL" are those who are connected to the 24+ paid promoters and Section 17(b) violaters per the Q's, who continue to see their free restricted shares unlock as we speak. This began on 11/1 and will continue until the final tranches unlock on 2/12/14. But as I stated in a prior post, we are currently in a two-week calm before the next 2,600,000 shares unlock and dilute the float beginning 1/7/14, followed by another 1,200,000 shares in early-FEB.

And this does not even account for the convertibles that are scheduled to come due. Nor does it account for the capital raises that Bob/SCRC himself state will be necessary. The following is from the freshly-minted Q&A that Bsav pointed everyone to:

"the company does anticipate the need to issue more shares to provide the necessary capital to fund operations, launch RapiMed® in the US, complete acquisitions and ramp up our supply chain management business."

"Based on our current strategies, management anticipates that Scrips will need an additional $3 million in capital for inventory, marketing, acquisitions and overhead. The company is continuously analyzing its business strategies and funding priorities."

Did you see that? Now it is not simply $1.5M in additional capital that the most recent Q disclosed was needed just to launch RapiMeds, but now additional DILUTIVE capital is necessary for everything else, including simply keeping the lights on and paying day-to-day A/P and other G&A expenses.

Don't get me wrong; there is nothing wrong with raising capital. After all, you need money to make money. But it takes time to generate a return on said capital. And the "raising" part of this equation is the most painful part for shareholders who are unwittingly caught unaware that they have been invited to buy-in right in the midst of wave after wave of dilution just so paid promoters can dump their shares and sell while encouraging you to buy. Again, new investors should ask themselves what the sense of immediacy is? The only angle on immediacy that makes sense would be if buyers set low bids and forced the paid promoters to come to them and have to settle for selling at rock-bottom prices. Otherwise, chasing the bid up when these sellers have clearly demonstrated how motivated they can be to dump, is tantamount to willingly letting the P&D promoters to come back and shear the same flock of retail sheep a second time.

No one knows how the market will react to future events (especially if there is news mixed in at the time), but if history is any indication, the first two tranches of these free shares that unlocked and diluted the float both resulted in the sp cratering 50% from the period immediately preceding that respective unlocking date.

That is a powerful direct precedent that all shareholders should keep in mind.