Proto Script Pharmaceutical Corp (OTCMKTS:PSCR) is a micro-cap name that has started to garner attention as the stock soars higher on a collection of catalysts. Momentum has been the name of the game here, with the stock ripping higher almost every single day since it started trading with liquidity about a month ago around $0.50/share. It is now three times that level, and continues to push higher.
The company is running on a couple key themes, principal among them being strong top line growth and its new contract with Centers for Medicare and Medicaid Services. “I am pleased to report that during the 3-months ended September 30th, 2016, we were successful at increasing our topline sales by almost 75% over the previous year and actually turned a very small profit,” commented Michelle Rico, CEO and President of PSP. “As positive as this sales increase has been, we are very confident that this is only the beginning of our growth strategy taking hold and that there is much more to come.”
Proto Script Pharmaceutical Corp (OTCMKTS:PSCR) bills itself as a company that provides a comprehensive collection of durable medical equipment (DME) like canes, crutches, walkers, commodes, patient lifts, hospital beds, orthotics (braces), wheelchairs, scooters, power wheelchairs, rehabilitation equipment, and accessories.
Currently serving California and Nevada, PSP Homecare has specialized in the repair of power wheelchairs and the sale of orthotics since 2011.
The Company deals with a growing list of federal, state and private insurance providers such as Medicare, Medi-Cal, Nevada Care and Blue Cross among several others.
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On April 28, 2016, Proto Script Pharmaceutical Corp. was awarded a multi-year CMS contract authorizing the Company to furnish certain items under the Medicare Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS) Competitive Bidding Program. Under terms of the Contract, Proto Script Pharmaceutical Corp. is authorized and required to provide specified items in certain Product Categories within specific Competitive Bidding Areas (CBAs) and submit claims to Medicare for reimbursement. The Contract period began July 1, 2016, and is scheduled to end on December 31, 2018.
So far, that has been productive as a boost to top line growth, as evidenced by recent data (unaudited).
Ms. Rico recently remarked, “Our multi-year contract with the Centers for Medicare and Medicaid Services enables most of our customers to access high-quality mobility equipment including wheelchairs, power chairs, scooters, and power beds completely through Medicare insurance. The CMS contract also places us on a short list of authorized Medicare approved suppliers in our Competitive Bid Areas. These combined benefits give PSP Homecare a strong foothold in California and Nevada, two of the largest and fastest growing mobility products markets in the country.”
The fact that these results are unaudited is a bit of hurdle. But investors seem to be getting past that hurdle with little problem of late, piling into the name.
We’ve witnessed in excess of 230% piled on for shareholders of the listing during the trailing month. The situation may be worth watching. PSCR is a stock who’s past is littered with sudden rips. In addition, the name has seen an influx in interest of late, with the stock’s recent average trading volume running 31% above the average volume levels in play in this stock over the longer term.
Traders should note this last detail as extra important due to the very limited float size in the stock (of 4.7M shares). One is wise to respect the dynamic this may create — a mechanically driven price squeeze can result from this type of mix of small float and ramping attention from traders.
At this time, carrying a capital value in the market of $568M, PSCR has virtually no cash on the books, which must be weighed relative to about $291K in total current liabilities. PSCR is pulling in trailing 12-month revenues of $444K. According to reports filed with the SEC, we also see powerful sequential quarterly top line growth of about 62%. This is an exciting story, and we look forward to a follow-up chapter as events transpire. For continuing coverage on shares of $PSCR stock, as well as our other hot stock picks, sign up for our free newsletter today and get our next hot stock pick!