, The Green Pennies Stock Report: Progressive Care, Inc. Forward-Looking Analysis

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Friday, August 11, 2017

Progressive Care, Inc. Forward-Looking Analysis

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Business Information:

Progressive Care, Inc.
Ticker: RXMD
901 North Miami Beach Boulevard Suite 1, 2
North Miami Beach, FL 33162
1-786-657-2060

PPS: 0.01907 a/o 8/10/17
Up 0.00177 or (10.23%)

Market Value: $6,589,545 a/o Aug 10, 2017
Authorized Shares: 500,000,000 a/o May 15, 2017
Outstanding Shares: 345,545,107 a/o May 15, 2017
Float: 313,793,000 a/o May 15, 2017

Fundamental Analysis:

According to Progressive Cares’ website, Progressive Care, Inc. is a South Florida health services organization and provider of administration and practice management, utilization management, quality assurance, HER Implementation, billing and coding, health practice risk management, prescription pharmaceuticals, the sale of anti-retroviral medications, compounded medications, medication therapy management (MTM), and the supply of prescription medications to long term care facilities. Progressive Care is also the owner of PharmCo LLC.

Progressive Care, Inc., through the years, has added a number of services and business lines including custom compounded medications, medication, therapy management (MTM), 340B services to charitable organizations, health practice risk management, and in-home health risk reviews. They are also moving forward in expanding the company across the nation, as well as acquiring other pharmacies, and further developing new revenue streams for their current market.

Progressive Care. Inc. Management
Shital Mars, Chief Executive Officer (CEO)
Alan Jay Weisberg, Chief Financial Officer (CFO) & Chairman


Shareholders on Record: 18 a/o May 15, 2017
Short Interest 71,046 (58.48%)

Trailing P/E: -1.19
Price/Sales: 0.05
Price/Book: 0.54
Beta: -26.28
Average Volume (3 Months): 395.27k
Average Volume (10 Day): 533.56k

52-Week Change -45.94%
52-Week High: 0.03800
52-Week Low: 0.01300
50-Day Moving Average: 0.01820
200-Day Moving Average: 0.02104

Source: Yahoo Finance -

There is much competition for Progressive Care. Inc. to fight against in the over-the-counter market as well as the at home medical care market. The biggest of these competitors are Walgreens and Rite Aid as they are a permanent national healthcare establishment. Progressive Care to counter is getting the licensing to do business in all 48 states of America. The global market for over-the-counter (OTC) drugs are valued at $133.25 Billion and is expected to climb up to $220 Billion by 2021.

Looking at Progressive Cares’ income statement (1st Quarter of 2017), the net sales were at $4,847,663. The costs of sales were at $3,268,703 leaving us with a gross profit of $1,578,960. The gross profit is ~32.57% of the revenue gained by the cost of sales being ~67.43% of revenue. Progressive Care also accumulated $1,402,247 in expenses from selling, general, and administrative expenses. This mixed with other income (expenses) leaves up with the net income (profit) of $163,664. The profit is achieved with a thin margin of 3.376% being left from the net sales.

$4,847,663
($3,268,703) ~67.43% in Cost of sales
($1,402,247) ~28.93% in Admin Expenses
($13,049) Other Expenses
$163,664 Net Profit ~3.376% of left over revenue




Progressive Cares’ balance sheet statement (1st Quarter of 2017) shows that Progressive Care had $788,179 in on-hand cash. Total current assets for the company are at $2,581,113. RXMD has $1,995,156 in total current liabilities, $111,390 in long-term liabilities, and $2,106,546 in total liabilities. Total Liabilities for Shareholders is currently at $2,581,113.

Note: This information comes directly from the 1st Quarterly Report of 2017. You can think of liabilities like credit card debt with intent to pay.

On July 14, 2017, Progressive Care sent out a press release holding information on the Second Quarterly Report. RXMD announced $1.7 million in net revenues in June 2017. They noted that they filled nearly 19,000 prescriptions showing off a 3% increase in the same quarter last year. They also pointed out that the company is currently restructuring Smart Medical Alliance to adjust to the changes in the ever changing healthcare environment. This includes securing new management for the company and the research and implementation of new programs to provide custom solutions for healthcare practitioners. Using the above percentages from the last quarterly press release, RXMD would end up with $57,392 in net revenue (profit).

On June 8, 2017, Progressive Care issued a press release stating that PharmCo has filled nearly 36,000 prescriptions and realized revenue of over $3.3 million during the April and May. This represents an 18% increase in revenue over the same period last year. They also stated that they are participating in a “Full Enterprise Best Practices Evaluation.” They noted that they are searching for new talent to become members of the Board of Directors as well as senior management.

Technical Analysis:

In a timescale of 2 years, RXMD has suffered from it fall free its three year high of ~0.0506 pps. Since then, the stock has been stuck in a period of consolidation. This period of consolidation began around 8/1/16 and ended up breaking downward on 1/23/17 to a now average pps of 0.0210. Looking at recent charts (6 months – 3 months) it is clear that the stock has been testing the lower resistance line and adding more negative pressure for the stock. With it is rebounding right now, there has been no testing of the upper Bollinger bands of the stock suggesting that there might be a move downward soon. Using resistance lines, it is suggested that the next significant point of resistance (if a break was to occur downward) would put the pps at 0.014. Following this, the next resistance line would be at 0.008.

The future of the stock, in our opinion, relies on whether the company can pay down the ~$2 million it has in liabilities. As of right now, it seems that the company has enough money to slowly pay down these liabilities. This debt clearly is hindering the company thus making it more difficult for the company to grow organically. The opposite is true in that if they were able to get the liabilites down, the company would have much more room to grow. Sales are increasing quarter after quarter which is very promising for long term investors. On the short term though, I would advise caution. While the current price movement could be considered volatile (such that you could flip and make a profit), because of the possibility of the lower resistance line breaking, you could get put in a bad situation.

Social Analysis:

For social analysis, we look at what investors are posting about the stock on sites like IHUB and Yahoo Money. RXMD historically has had a very active community based around the stock with many of the same longs still holding. I see this as a sign of health and good will for the stock. It is worth noting that bashers are trashing the companies’ name, though this is to be expected with flippers trying to make money. While this is not an ideal situation for investors posting on the board, I still see this as a sign of health.

There are people on there trying to defend the stock quoting its financial profit. I agree that this is something to be proud of, though I [personally] feel that the company should invest into finding out how to bring the cost of sales down. The company loses ~68% of the money it makes to cost of sales. If this number could be negotiated down, the company would organically increase the number of profits every month. This would cause the company to feel more comfortable to investors as the company is still relatively close to their breakeven point. If the market was to change and RXMD got unlucky, it is possible that RXMD could slip back into the negative earnings. Plus, they could focus the money on added labor, research and development, and paying down the liabilities.

Lastly, the board does have a somewhat negative sentiment lingering (though the longs are trying to fight it off). The fact is, the price per share has been slowly sinking for a while now. The company is awaiting news on mergers, acquisitions, or any other news that might make the price jump.

Forward-Looking Analysis:

Our team has decided that the best way to play this stock would be to hold if you have shares, possibly sell on a high for a profit if possible. Keep an eye on the news as well as the fundamentals. If things improve, the price per share will reflect it. Lastly, be careful. Our stock patterns suggest a move downward from this period of consolidation (due to the repeated attempts to break the resistance line). If this line breaks, you might put yourself at a loss in the short term. RXMD is a great company that is doing great things. May they continue to help their local community and may their future business practices bring rewards.

Disclosure:

I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article. I also will not be holding shares in the company in the next two weeks of this articles posting.

I have no positions in any stocks mentioned and have no plans to initiate any positions within the next 72 hours.


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