Replies to post #19590 on ScripsAmerica Inc. (SCRCQ)

[coolerheadsprevail]

One can hope that there is a good Sept # that will hit early next week to get a bounce and that there is some validity to the CFP rumor for mid Nov.

Based upon the approved orders for JUL and AUG, and the fact that the new insurance coverage restrictions did not kick in until 9/15/14, the revenues for Q3 should be fine. And based upon the Q2 expense run rates, assuming they ran consistently for Q3 and barring any material new Q3 expenses, I would be stunned if SCRC did not report positive earnings for Q3 (not YTD, mind you, but just Q3).

That being said, the key will be how forthcoming SCRC is w/regards to disclosures in the Q re: the true impact of the new insurance converage restrictions. For example: Will it disclose a breakout of SEP "approved orders" between the "pre-restriction" 9/1/14-9/14/14 period and the "post-restriction" 9/15/14-9/30/14 period?

If the Q includes disclosures that tell the reader that SCRC's golden goose is about to get cooked, then this will outweigh the fact that SCRC just enjoyed one profitable quarter because readers will know that this quarter will NOT be able to get replicated.

BUT, if the Q includes disclosures that can reasonably convince readers that the new insurance coverage restrictions have had only nominal impact on its compounding pharmacy segment, then I would be surprised if the market did not react very favorably to the Q, as they would see that SCRC has a high likelihood of being able to replicate the profitable quarter.

Keep in mind that before the Q comes out, we will also know the OCT approved orders number, which will reflect the first full month of "post-restrictions-only" numbers. So as I stated in a prior post, the OCT numbers will be very very important to see.