Why RXMD has Huge Potential with Big Numbers as Healthcare Takes Center Stage

Date : November 24, 2019

New Opportunity:  Progressive Care Inc. (OTCMKTS:RXMD)

As should be clear from even a cursory exploration of the politics that will take us into the 2020 campaign season, healthcare is the most important issue on the table for Americans. Attempts at putting together a revolutionary inflection in how the US healthcare system works will likely fare poorly. Incremental change is the rule in politics and war.

And so it will go with the US system for prescription drugs and healthcare services.

One small cap with big plans in the space right now is Progressive Care Inc. (OTCMKTS:RXMD). The company provides prescription pharmaceuticals, compounded medications, tele-pharmacy services, anti-retroviral medications, medication therapy management (MTM), prescription medications to long-term care facilities, and health practice risk management. It’s a universal solution to what ails the system that’s supposed to cure what ails us all.

The stock is testing key support as the company banks massive revenues (over $22M on a trailing twelve month basis) on huge top-line growth (37% last quarter on a y/t basis). This is the time to give it some serious attention.

Symbol:  RXMD
Company:  Progressive Care Inc.

Website:  https://progressivecareus.com/
Quote:  http://finance.yahoo.com/q?s=RXMD
Latest News: 
http://finance.yahoo.com/q/h?s=RXMD+Headlines

Who is RXMD

Progressive Care, Inc., through its subsidiary, Pharmco, LLC, provides prescription pharmaceuticals to individuals and institutions in south Florida.

The company operates a retail pharmacy that specializes in the sale of anti-retroviral medications and related patient care management; the sale and rental of durable medical equipment (DME), such as hospital beds, oxygen supplies, power wheelchairs, scooters, walkers, and other related equipment and accessories; and the supply of various prescription medications to long term care facilities.

It also provides long term care solutions to skilled nursing facilities, assisted living facilities, retirement centers and communities, doctors’ offices, and clinics, which is a huge factor given the massive migration of the baby boomers into the later stages of life.

In addition, the company purchases, repackages, and dispenses prescription and non-prescription pharmaceutical products for its long term care customers.

It also offers computerized maintenance of patient prescription histories; third party billing; and consultant pharmacist services consisting of evaluation of monthly patient drug therapy and monitoring the institution’s drug distribution system, as well as home service and maintenance, defective product replacements, and free home installation and instruction services.

In other words, this is a company that is making the healthcare system work for all parties involved, including its own stakeholders. The company provides prescription pharmaceuticals, compounded medications, tele-pharmacy services, anti-retroviral medications, medication therapy management (MTM), prescription medications to long-term care facilities, and health practice risk management.

Recent Catalysts

Most recently, the company announced further growth year-over-year in revenue and number of prescriptions filled for September 2019.

According to the release, September 2019 sales continued to increase with $3.1 Million in gross revenue and over 42,000 prescriptions filled between the 4 locations in Florida. Gross revenue does not include PBM clawbacks for DIR or other fees. Revenues increased by 94% over the same month last year and prescriptions filled increased 73%.

“September’s performance was better than expected,” said S. Parikh Mars, Chief Executive Officer of Progressive Care Inc. “During the month sales were impacted by the hurricane threat and observed holidays. We are pleased with the resilience of the business and are optimistic about the future outlook.”

The company has also garnered a great deal of earned media coverage, appearing on the Pot.Live podcast, and receiving coverage in Huffpost and Fast Company publications.

That suggests the RXMD narrative has legs.

But perhaps the most exciting news besides the huge sales growth underway is the company’s announcement of the formation of its wholly owned subsidiary, RXMD Therapeutics Inc., which specializes in cannabinoid-based and alternative therapy product lines.

“We are excited to make this official announcement, RXMD Therapeutics Inc. has been in the planning stages this past year” said S. Parikh Mars, CEO of Progressive Care Inc. “We believe we have finally found a pathway where we can provide cannabinoid and homeopathic products that meet our strict quality requirements while also being able to manage these therapies from a health and wellbeing perspective.”

According to the release, “Progressive Care Inc. will develop and produce proprietary cannabinoid and homeopathic products that will be solely offered from RXMD Therapeutics Inc. The first line of production will consist of tinctures, skin creams, roll-ons and gel capsules which are the dosage forms most easily managed by retail patients. RXMD Therapeutics brands will be tested for consistency and quality assurance prior to release and periodically thereafter.”

Technical Analysis

Shares of RXMD continue to settle into a key support range in the $0.03-0.04 area, which represents a point on the chart that has fostered massive bullish advances in the past, including a 100% rally in late August of this year and a 700% rally in early 2018.

Traders will eye this level given past reactions.

The stock is also sitting at 35 on the RSI indicator, suggesting it is deeply and unsustainably oversold at present levels and due for some sort of reaction bounce. We also see a tempting Bullish Divergence on the MACD indicator that came into place over recent days, suggesting a higher probability of a near-term bounce according to our analysis.

About RXMD

RXMD (Progressive Care Inc.) operates a retail pharmacy that specializes in the sale of anti-retroviral medications and related patient care management; the sale and rental of durable medical equipment (DME), such as hospital beds, oxygen supplies, power wheelchairs, scooters, walkers, and other related equipment and accessories; and the supply of various prescription medications to long term care facilities. It also provides long term care solutions to skilled nursing facilities, assisted living facilities, retirement centers and communities, doctors’ offices, and clinics.

In addition, the company purchases, repackages, and dispenses prescription and non-prescription pharmaceutical products for its long term care customers.

It also offers computerized maintenance of patient prescription histories; third party billing; and consultant pharmacist services consisting of evaluation of monthly patient drug therapy and monitoring the institution’s drug distribution system, as well as home service and maintenance, defective product replacements, and free home installation and instruction services.

Key Points:

  • RXMD is on point as a leading speculative play on concerns around the future of the healthcare sector for all involved stakeholders
  • RXMD is making real money, with trailing revs already coming in at $22.8M.
  • RXMD is starting to see major topline growth, with quarterly y/y revs increasing at 37%.
  • RXMD is coming off an RSI trough under 40, pointing to a massively oversold stock now heading back the other way.

RXMD just recorded a MACD Bullish divergence and reversal, suggesting a technical change in trend back to the upside off a very important technical support level.

RXMD has a strong technical case as a current speculative play for market participants based on our analysis. In addition, the company sits at the crossroads of one of the most contentious issues of our time, and it’s making it work, with huge revenue growth and strong performance that is quantitatively improving on even a monthly basis.

With its new cannabinoid segment, the company is also a firm new entity in the explosive Hemp and CBD marketplace, where recent projections suggest explosive growth of as much as 125% CAGR looking out the next half-decade.

Thematically, technically, and fundamentally, RXMD has the numbers and the story to make a major splash from current levels, and truly deserves a close look at present levels.

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