Progressive Care Inc. (RXMD) had a bit of a run in the New Year and now seems primed for the next leg up. They announced prescription growth of 33% in 2014 and expect revenues could be increased by as much as 50-60% in 2015 or $18-20M total. Their authorized share count is 100M with some 40M+ outstanding at this stage as they retire the only remaining debt that they have (we assume debt is now down to $1M or less). In recent days the stock shot up to nearly .05 before cooling off in advance of what we expect will be a bigger move. Some estimates have a fair value based on projected 2015 revenues of some .29+/share. We expect January prescription and revenue information to be release early next month. We note the float here is on the order of just 12M shares. The current price of .02 may offer an attractive entry point for those so inclined.
Progressive also recently announced a JV with another specialty pharmacy (CareMed Inc.) which is expected to allow them to increase their prescriptions further and gain considerable economies of scale given a similar geographic footprint. There have been some rumblings that the JV was announced to make the combined entity more attractive to bigger Pharm Co’s. We have zero way to validate that but we do note that Progressive Care’s CEO has done several previous M & A’s so at the very least the thought, if not the substance, is a viable one.
Disclaimer: We are long RXMD. Please do your own due diligence or consult with a trusted financial advisor prior to purchasing this or any other security.