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Progressive Care Inc (OTCMKTS:RXMD) Is A Top Rebound Play

Progressive Care Inc (OTCMKTS:RXMD) Is A Top Rebound Play
Written by
Jim Bloom
Published on
October 17, 2017
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A series of positive information has pivoted the stock price of Progressive Care Inc (OTCMKTS: RXMD) recently. The company looks to be a top rebound play as it continues to grow and increase value for its shareholders.The company’s share price is as shown below: RXMD Daily ChartThis article will review the stock, assessing its potential upside based on its strategy and financial performance. We want to bring out our view on the benefits accruing to an investor investing in this stock for either the short or long term.Having said this, it is important for us to briefly review the company for readers with rudimentary knowledge of its operations.Progressive Care Inc: An OverviewProgressive Care, Inc. (“Progressive”) was incorporated under the laws of the state of Delaware on October 31, 2006. Since then, RXMD has grown to acquire two subsidiaries: PharmCo LLC and Smart Medical Alliance Inc.RXMD, through its subsidiaries, is a South Florida health services organization and provider of prescription pharmaceuticals, compounded medications, the sale of anti-retroviral medications, medication therapy management (MTM), and the supply of prescription medications to long term care facilities, administration and practice management, utilization management, quality assurance, EHR Implementation, billing and coding, health practice risk management.It has specialized in the provision of drugs and services to HIV/AIDS patients who are on lifetime drugs. Their high-quality services as well as professional workforce has led to the sustained revenues over the life of RXMD. With this expected to hold into the future, the company’s growth prospects are quite good.The past and future of RXMDRXMD prides itself in being the leading provider of prescription pharmaceuticals, specializing in ARV patient management and durable medical equipment. In addition, they also provide long-term care solutions such as skilled nursing facilities, assisted living facilities, retirement centers and clinics and doctors’ offices and clinics. They have marketed themselves to players in the health sector; cutting a niche for themselves by alignment with high quality of service specialized to ARV patients.In January 2017, RXMD executed an agreement to be a 340B prescription provider for Community AIDS network (CAN), a move meant to grow and solidify their customer base. Currently, CAN operates 23 healthcare clinics in Florida. These clinics offer treatment and counselling to patients with HIV/AIDS, Hepatitis C, and other infectious diseases.According to the company’s CEO, S. Parikh Mars:

"PharmCo has a long history of supporting the HIV/AIDS Community in South Florida with our ongoing outreach and pharmaceutical services. We are excited to be joining with Community AIDS Network to improve the lives of those affected by infectious diseases. PharmCo is rapidly becoming the go-to pharmacy for 340B qualified organizations. We believe that growing this segment of the business will provide us with access to many underserved markets and the ability to maintain our strong standing in the local communities."

Source:This move was preceded by RXMD’s investment in ScriptPro CRS 225, a software solution that holds up to 225 medications and can have over 1,000 prescriptions filled daily. Over the term of its use, it has increased capacity, streamlined workflow and quality control as well as improved accuracy.In the most recent quarter, their operations were affected by the prevalence of Hurricane Irma which rained havoc on the South Coast. The hurricane, however, mainly affected power and internet connections, leading to lower numbers of orders during the period. However, their staff were relentless in their provision of quality service to their customers over the same period in a bid to ensure optimal service delivery especially in challenging times.In the future, the company plans to leverage on its investments in both software and marketing to produce output more efficiently as well as grow its client base in a bid to sustain its revenues into the future.A closer look into their numbers reveals:RXMD’s financial position has been growing steadily over time. The $5.874 million company with over 50 employees seems to be finding its grounding in the healthcare industry.In the period till June 2017, their revenues rose by 26% to $19,872,000 from $15,711,000 in a similar period last year. Similarly, their gross profit margin rose by 4% to 29% in the same period, significant of more efficiency in their management of costs. They also moved from a loss position of $362,000 to a $16,000 profit position for the period till June 2017.The company’s assets grew by over 40% from $1,712,000 as at June 2016 to over $2,447,000 as at June 2017. Furthermore, the deficit in their cash flows from operations reduced from $151,000 to $57,000 in June 2016 to 2017 respectively significant of higher cash flow generation during this period.The above analysis goes to prove the solid financial strength as well as management of RXMD. A continuation of the same trend is expected to continue with the company furthering their business strategy by building a stronger brand and growing its revenues. Over the long-term, they are expected to be a force to reckon with in the healthcare sector.ConclusionRXMD represents one of the success stories in the market. Their strategy coupled with the good management practices exhibited in their financial position are bound to spring them up to higher ground in the future. Their growth prospects are high and therefore investment in them would be advantageous for any investor.We will be updating our subscribers as soon as we know more. For the latest updates on RXMD, sign up below!Disclosure: We have no position in RXMD and have not been compensated for this article.

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