ScripsAmerica, Inc. (OTCBB:SCRC) Maintains Explosive Run
Yesterday’s session saw ScripsAmerica, Inc. (OTCBB:SCRC) add another 15 cents to its share price and close the day 20% up at precisely $0.90 per share. The price managed to go on a virtually uninterrupted spree over 16 consecutive sessions.
SCRC is a business operating in the pharmaceuticals sector, and more specifically – in the distribution of drugs and medication to retail outlets, hospitals, etc. To SCRC‘s credit, the company’s move up the charts appears to have happened without the intervention of paid promoters and email pumps or paper mailers. This alone is a sufficient factor that could have drawn more investors to the ticker as it climbed.
The company’s financial situation as of March this year, the date of their latest financial report, was as follows:
- $3 thousand in cash
- $2 million in current assets
- $1.9 million in current liabilities
- $287 thousand in Q1 revenues
- $730 thousand in Q1 net loss
Despite some of the visible shortcomings in these figures, the company boosted investor confidence through some of its recent press releases. SCRC announced they cleared a portion of convertible debt with cash instead of shares and made a point of doing this to rein in common stock dilution and to protect retail shareholders. Obviously, sometimes such a relatively minor gesture can go a long way.
The stock’s performance was additionally bolstered by news of negotiations for the distribution of SCRC‘s RapiMed(R) onto the Chinese market. The negotiations are expected to culminate in a distribution agreement around September. The very fact that SCRC already has a ready, marketable product under their belt, especially one as attractive as orally dissolved tablets, already puts the company several paces ahead of a number of other OTC pharmaceutical companies.
Investors should, of course, keep in mind that trying to chase a stock that has already run that high so quickly holds significant potential dangers as a reversal can happen at virtually any point in time and for various reasons. Two very recent examples of stocks that went up in leaps and bounds, then reversed their movement just as quickly are Hanover House, Inc. (OTCMKTS:HHSE) and NanoTech Entertainment, Inc. (OTCMKTS:NTEK) who both had about a third of their share price sliced in just two red days after a prolonged climb.
