posted
by the way, who-ever is taking my stars away, dont really care, I am heading to $250,000.00 for myportfolio, this year alone. just trying to be helpful.
-------------------- . Posts: 110 | From: chico , ca | Registered: Oct 2005
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quote:Originally posted by wallymac: Well I think it was from posts over on IHUB. Some of the people posting were calling and talking to the CEO. They said that they didn't know exactly what the news would be but that it would be BIG.
If this turns out to be scam it's the worst run scam I've ever seen. They reduced the Float and Outstanding recently. I believe there is a total of around 67M shares Out Standing with only 12.5 in the float. No big build up to create volume and no dumping shares. I'm not saying I completely believe it but just trying to look at this from all sides.
"over on IHUB. Some of the people posting were calling and talking to the CEO"
gotchya...
(be helpful if folks would include links on posts like that, so that those who follow could easily see who says they talked to the company, when, etc...)
Ok, first confusion: I see a split first announced May 19 ( http://biz.yahoo.com/iw/060519/0130334.html ) then revised June 6 ( http://biz.yahoo.com/bw/060606/20060606005575.html?.v=1 ). In the latter, the split/divvy is described as "isuance of an annual stock dividend" then later there's this: "The Board of Directors intends to declare annual cash dividends in the foreseeable future . . ."
1) Are they saying they will have an annual stock divvy, plus "subject to Rx Processing Corp.'s financial performance" also an annual cash dividend?
quote:Originally posted by SherriT: J-U-ICE, I think you definately have a following that is for sure! I know that my choices have to be pretty reasonable when I see you and Egg in them....good things happen to good people.
Sherri, I don't know if words will do this justice, but;
THANK YOU, thanks for including the likes of me with the one and only J_U_ICE. I am an underserving newB and your kind words have given me a little more belief that I may one day have the ability to play this game for keeps Posts: 1307 | From: Pittsburgh, PA | Registered: Jun 2006
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not likely.... that would represent a 50 bagger ???unless I did not figure it correctly
Jimmy Mac
I'm on page 7 in the thread. reading right now. I guess I will find out soon enough, but, for now I didn't see the problem with this 8% * $48/share.
here's my EggLogic:
once a company gets to big boards and has an IPO don't they basically 'name' their price, in so much as the Sector will allow. pharmaceuticals are hot, and known money makers with potential partnerships (mergers have been mentioned) and situations we have not been privileged to, why couldn't they have an IPO price of $48.00 share?
I will read on.......Posts: 1307 | From: Pittsburgh, PA | Registered: Jun 2006
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quote:Originally posted by Schwabie: Guys this just means that they are going to do one BIG HUMONGOUS SPLIT to get it all right. They are NOT going to give away free money... think beyond what is written...
again, correct me if I am wrong, 'THEY" would not be giving anything away, right?
if the stock is priced * $48/share, and on Sept/30/200* (for example) I sell 1000 shares, the ask is $47.89sh. when it is bought it will be by another inverstor, not RXPC, right?
see my logic?
Posts: 1307 | From: Pittsburgh, PA | Registered: Jun 2006
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quote:Originally posted by J_U_ICE: I'm not leaving everyone hanging I'm just trying to get more info.
Juice...your input, opinion, and knowledge are invaluable, for obvious reasons. But, don't let anyone make you feel it is obligated. it is much appreciated, not required, and we are all lucky to have you here. Posts: 1307 | From: Pittsburgh, PA | Registered: Jun 2006
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posted
not saying RXPC must follow the same model, but just for reference here's some background on a well-known move from public to private, "Doubleclick":
clearly, it's not an overnight process; took Doublick roughly from October 04 to July 05; also note concept of going private then re-IPOing "a firm after a few years."
quote:Originally posted by madmoney: egginspector: 115 bucks may be worth the risk, hell I spend more than that on cigarettes! but thats about all i would risk at this point- cigarette money! LOL - glty!
LOL mad...yes, I have very little here...
Posts: 1307 | From: Pittsburgh, PA | Registered: Jun 2006
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posted
Tex, Here's a prior PR, the redcuing of the share structure was during previous months maybe this will help.
Rx Processing Corp. Retiring the Majority of Issued and Outstanding Common Stock Friday March 24, 8:00 am ET
WILMINGTON, DE--(MARKET WIRE)--Mar 24, 2006 -- Rx Processing Corporation (Other OTC:RXPC.PK - News), a source of low-cost prescription medications for millions of Americans who are under-insured or have no prescription insurance coverage, recognized a commitment to shareholder value by motivating shareholders to retire a significant amount of common stock.
Rx Processing Corp. asked insiders and shareholders to retire common stock to reduce the issued and outstanding shares in an ongoing effort to secure the company from short positions and market manipulation. The response was overwhelmingly positive; shareholders thus far have retired 78 million shares from a high point of about 189 million "Feb 06." The company is committed to retire, an additional 54.35 million shares, currently in process.
Peter Fiorillo commented, "Our company actions, diligently increasing shareholder value by retiring shareholders stock, protect our capital interests as we build investor confidence and value today and in the future."Posts: 3255 | From: Los Angeles California | Registered: Jan 2006
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quote:Originally posted by SherriT: Egg, your calculations are correct from my understanding of the situation. The 8% is from:
"I have modified the way in which our shareholders will move to the NASDAQ, immediately strengthening positions and thus increasing long term market stabilization. These corporate actions will create a new beginning for shareholders and will tighten up our capitol structure to about 8% of Rx Processing Corps.' current capitol structure, an IPO for 1 million shares at $48 per share price will be initiated in September of 2006."
In other words, they want less shares out there at a higher price...not sure WHY they chose 8%, but that is where I got it from....
now, not to throw a monkey wrench in this 8% of current shares, but jrdig7 mentioned $3.84/sh.
Now, from the beginning I read this whole thing to mean; existing share holders would retain their shares.
new shares (IPO) =$48.00 / sh. old shares (restricted) = $3.84 / sh. 0r 8% of IPO price
I like the latter: maybe the restriction is we can only sell them back to Rx Processing for $3.84/sh for the first 12 months? also, it would mean the same thing in value currently, but, in the long run, the restricted shares would have the flexibility to be valued higher when they become unrestricted.
*this was my take. J_U_ICE, could this be true? or, in the phone calls to Peter did you confirm this 8% of currently held shares figure i.e. current=10000 shares / after IPO=800
just an thought...Posts: 1307 | From: Pittsburgh, PA | Registered: Jun 2006
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quote:Originally posted by SherriT: Egg, your calculations are correct from my understanding of the situation. The 8% is from:
"I have modified the way in which our shareholders will move to the NASDAQ, immediately strengthening positions and thus increasing long term market stabilization. These corporate actions will create a new beginning for shareholders and will tighten up our capitol structure to about 8% of Rx Processing Corps.' current capitol structure, an IPO for 1 million shares at $48 per share price will be initiated in September of 2006."
In other words, they want less shares out there at a higher price...not sure WHY they chose 8%, but that is where I got it from....
now, not to throw a monkey wrench in this 8% of current shares, but jrdig7 mentioned $3.84/sh.
Now, from the beginning I read this whole thing to mean; existing share holders would retain their shares.
new shares (IPO) =$48.00 / sh. old shares (restricted) = $3.84 / sh. 0r 8% of IPO price
I like the latter: maybe the restriction is we can only sell them back to Rx Processing for $3.84/sh for the first 12 months? also, it would mean the same thing in value currently, but, in the long run, the restricted shares would have the flexibility to be valued higher when they become unrestricted.
*this was my take. J_U_ICE, could this be true? or, in the phone calls to Peter did you confirm this 8% of currently held shares figure i.e. current=10000 shares / after IPO=800
quote:Originally posted by SherriT: mad, everything you say is true...I'm just willing to risk what I have invested for the possibility...
You are also not considering the merger with DL, what other deals might be in the works behind the scenes that may have been easier to close quickly if the company is private, and lots of questions as you said. Hopefully you will find a stock that is better suited for how you invest...GLTY
.......very savvy Sherri Posts: 1307 | From: Pittsburgh, PA | Registered: Jun 2006
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I have only recently, this past week gotten into this stock. Therefore am not even close to being knowledgable in regards to all the past events. What had perked my interest was the WSJ article that mentioned Direct Labs Services(DSL). RXPC was attempting to acquire DSL. I felt that with the acquisition of DSL, RXPC would place themselves in the mix with some of the other companies mentioned in the WSJ article. Other companies in this line of business were trading in the $60 range. At the time RXPC was trading in the .03 to .05 range. I just thought that RXPC would be good for at least a double and maybe a 10 to 20 bagger. What transpired on Friday knocked me for a loop and I have been attempting to get a handle on it since then. As I stated earlier, I want to look at this from all angles. This is completely a Risk/Reward play. I'm still accessing the potential Risk Vs Reward. I'm glad you are around helping to decipher this.
Thanks Wally
Posts: 3255 | From: Los Angeles California | Registered: Jan 2006
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quote:Originally posted by SherriT: Actually, I just signed back in to Scottrade to look at the streaming quotes...check your own broker, software...everything else is showing a price on the bid except RXPC....
posted
new shares (IPO) =$48.00 / sh. old shares (restricted) = $3.84 / sh. 0r 8% of
Egg, What I meant was that the current shares are worth $3.84 if you do the math in relationship to the price at IPO of $48. Shares in the future will be valued at whatever the market is willing to pay. They will be supported initially at $48 but free trading will dictate whether they go higher or lower. That will depend on the performance of the company. If they land some big contracts and get store fronts up and running, the price could go up significantly due to only 1 million free trading shares. It could go down also, but the good news on that is they would have to drop to .75 pps to equal shares today trading at .06 If we get an IPO at $48, I can't imagine a scenario where they would drop to .75 One more mark in favor of reward.
There are alot of questions yet to be answered here. Don't ever risk more than you can afford to lose. GLTY
-------------------- This is not a contest. Let's all make some green. GLTA Posts: 38 | From: SC | Registered: Jun 2006
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quote:Originally posted by shoot-the-messenger: To all:
Well, I've read the PR and many of your post.
I have to say I don't believe in the tooth fairy or free money.
If I were to get 8% of my shares in the new company thats 4000 shares at an IPO price of $48 which would be worth $192,000 for a $1700 investment. Was I born yesterday?
The one positive in the PR that I can make out is the conversion to certificates. If anyone is short or better yet naked short, they will have to cover and that stands a better chance to drive the price up short term. Thats one of the things that kept my finger off the sell button.
For now, I'll wait for more clarification and I hope to get it in the form of a PR and not hearsay. (No disrespect intended to any of you, I think your post are honest, its Peter I don't yet trust.)
stm
someone explain to me how this would be: Rx giving us FREE MONEY!
now I am a newB so I am sure I don't have a clue, but there isn't 1 penny given to us until someone else(third party) is willing to pay it, right? as far as I know, Rx Processing has no obligation to buy it's shares from shareholders (us) correct? and never will. only then would they be giving free money. In this case, they are only saying "we have a great company, a great business model, we are in a dynamic sector, we are going to clean up or stock situation. the companies who are our future peers (we aspire to) are normally valued in the $60-$90 range. we are going to get rid of all shorts. we are going to lower the O/S to make us as attractive as possible. once we enter into mutually benefiting partnerships / possible mergers, etc..(we don't know the details) we believe we will be worth X-amount.
As shareholders, we will only know if they are worth X-amount ($48.00/sh) depending on what a third party (the market) is willing to pay for them. If the market is willing to pay $40+/sh, why wouldn't our shares be worth 600+ % more than the buy. we were the people that believed in them when they were nobody. doesn't this kind of thing happen all the time. you know the stories you read about happening to other people....well we're those people in this story.
I just wish I had more $ to put in. Alas, Egg is tapped out Posts: 1307 | From: Pittsburgh, PA | Registered: Jun 2006
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posted
Below is some excerpts from an article on IPO's. I read the whole article. no where did it change my thinking on how Rx is pricing their IPO, or should I say how they are setting their 'target price'.
The most important character is probably the underwriter, an investment banker who works for an investment company. Underwriters have the distribution channels and business community contacts that can get a company's shares out to the right investors. They will also help set the initial offering price for the stocks, work to create enthusiasm for the stock, and assist in creating the prospectus. The prospectus is an important document that describes the company in great detail to potential investors.
Once the prospectus has been drafted, it is reviewed by the SEC. SEC approval only means that the prospectus follows the regulations for such documents -- it says nothing about the quality or future profitability of the company.
Following SEC approval, company executives go on the road show, otherwise known as the dog-and-pony show. This is a tour of major cities and cities where important brokerage houses have their headquarters. At these invitation-only slide shows (a few elite investors will even get one-on-one presentations), potential investors are given "goodie bags" containing calendars, pens, samples of the company's product, and whatever else might help investors think favorably about the company. One fashion designer even stocked a road show with famous supermodels.
Although the goodies and supermodels take the spotlight, the road-show crew also includes a Wall Street analyst who will give positive opinions about the company's future profitability. However, no one involved with the company is allowed to talk publicly about anything that isn't in the prospectus in the period leading up to the IPO
The Day of the IPO
The day before the stocks are issued, the underwriter and the company must determine a starting price for the stocks. A target price will have been set early on in the process, but IPOs are rarely stable. Obviously, the higher the price, the more money the company gets; but if the price is set too high, there won't be enough demand for the stocks, and the price will drop on the aftermarket (the open financial markets where the stock will be traded after the initial offering). The ideal stock price will keep demand just higher than supply, resulting in a stable, gradual increase in the stock's price on the aftermarket. This will lead to praise from market analysts, which will in turn lead to increased value down the road.
Posts: 1307 | From: Pittsburgh, PA | Registered: Jun 2006
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quote:Originally posted by T e x: not saying RXPC must follow the same model, but just for reference here's some background on a well-known move from public to private, "Doubleclick":
clearly, it's not an overnight process; took Doublick roughly from October 04 to July 05; also note concept of going private then re-IPOing "a firm after a few years."
Tex, are you implying that your opinion is RXPC is very ambitious indeed to think they can:
be a public pink - JULY 06 a private corp. - AUGUST 06 a NASDAQ public - SEPT. 06
I haven't read your links on 'doubleclick' yet, but I was thinking the same thing without reading anything. I know I incorporated my small '1-man show' business and it took a few months!
Posts: 1307 | From: Pittsburgh, PA | Registered: Jun 2006
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I have only recently, this past week gotten into this stock. Therefore am not even close to being knowledgable in regards to all the past events. What had perked my interest was the WSJ article that mentioned Direct Labs Services(DSL). RXPC was attempting to acquire DSL. I felt that with the acquisition of DSL, RXPC would place themselves in the mix with some of the other companies mentioned in the WSJ article. Other companies in this line of business were trading in the $60 range. At the time RXPC was trading in the .03 to .05 range. I just thought that RXPC would be good for at least a double and maybe a 10 to 20 bagger. What transpired on Friday knocked me for a loop and I have been attempting to get a handle on it since then. As I stated earlier, I want to look at this from all angles. This is completely a Risk/Reward play. I'm still accessing the potential Risk Vs Reward. I'm glad you are around helping to decipher this.
Thanks Wally
wally, I hope I am not 'just a pain' on this. I am trying also
Posts: 1307 | From: Pittsburgh, PA | Registered: Jun 2006
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posted
Egg, No you are bringing good discussion on this and it is very welcome IMO. As long as this stays a productive discussion as it is now, we might be able to get to the bottom of this. The more constructive speculation and DD we get the closer we will get to accessing the nature of this play. At this point I, for one, am completely satisfied with the manner everyone is attempting to figure this one out.
Your routine on a Sunday follows mine. Read, Post take a break incl a cig and then come back.
GLTA Wally
Posts: 3255 | From: Los Angeles California | Registered: Jan 2006
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quote:Originally posted by jrdig7: new shares (IPO) =$48.00 / sh. old shares (restricted) = $3.84 / sh. 0r 8% of
Egg, What I meant was that the current shares are worth $3.84 if you do the math in relationship to the price at IPO of $48. Shares in the future will be valued at whatever the market is willing to pay. They will be supported initially at $48 but free trading will dictate whether they go higher or lower. That will depend on the performance of the company. If they land some big contracts and get store fronts up and running, the price could go up significantly due to only 1 million free trading shares. It could go down also, but the good news on that is they would have to drop to .75 pps to equal shares today trading at .06 If we get an IPO at $48, I can't imagine a scenario where they would drop to .75 One more mark in favor of reward.
There are alot of questions yet to be answered here. Don't ever risk more than you can afford to lose. GLTY
I realized most of what you are saying here before. I am also trying to dispel this notion of 'free money' which is ridiculous. I like your logic. your "it would have to fall" baseline. so far, even though it is not at all what I expected, I can't see how we lose.
so... there is no-way I could be even close to something?
restricted shares/(old)shares
= $3.84 (8% of IPO) =can't be sold for 12 months except to Rx?
...this was my interpretation...Posts: 1307 | From: Pittsburgh, PA | Registered: Jun 2006
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quote:Originally posted by wallymac: Egg, No you are bringing good discussion on this and it is very welcome IMO. As long as this stays a productive discussion as it is now, we might be able to get to the bottom of this. The more constructive speculation and DD we get the closer we will get to accessing the nature of this play. At this point I, for one, am completely satisfied with the manner everyone is attempting to figure this one out.
Your routine on a Sunday follows mine. Read, Post take a break incl a cig and then come back.
GLTA Wally
Posts: 1307 | From: Pittsburgh, PA | Registered: Jun 2006
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posted
posted by Egg: ------------------------------------------------- there is no-way I could be even close to something?
restricted shares/(old)shares
= $3.84 (8% of IPO) =can't be sold for 12 months except to Rx?
...this was my interpretation... -------------------------------------------------
wally, I just figured out why 'my interpretation' couldn't possibly be right. It does not reduce shares. one of their main directives.
Posts: 1307 | From: Pittsburgh, PA | Registered: Jun 2006
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quote:Originally posted by T e x: not saying RXPC must follow the same model, but just for reference here's some background on a well-known move from public to private, "Doubleclick":
clearly, it's not an overnight process; took Doublick roughly from October 04 to July 05; also note concept of going private then re-IPOing "a firm after a few years."
Tex, are you implying that your opinion is RXPC is very ambitious indeed to think they can:
be a public pink - JULY 06 a private corp. - AUGUST 06 a NASDAQ public - SEPT. 06
I haven't read your links on 'doubleclick' yet, but I was thinking the same thing without reading anything. I know I incorporated my small '1-man show' business and it took a few months!
lol, "ambitious"...
ya...
I realize Doubleclick was a "real" company, so the months involved may not apply here. As a pink, they may be able to pull a hat from the rabbit, and *FOOP* suddenly they're private.
However, doing so would lessen their credibility as a "real" company and almost certainly sour any chances of offering an IPO from one of the exchanges...which in and of itself is quite an undertaking.
A general concern is their poor, oddly worded PRs, suggesting less than professional oversight, or worse...
In addition to the "ambitious" time-line--which doesn't yet make sense to me, even if possible--three specific concerns remain for me:
posted
I have incorporated 3 times, (personally been involved) 1 C-corp. 1 S-corp. and 1 LLC. it takes some time. the companies: -1-man show. 2 months.
-10-12 employees. 1.5 months (LLC)
-20-25 employees. 3-4 months
they are ambitious to say the least.
I also have great concern about the 'retired shares' which I found out about today for the first time.
I am glad the likes of you and J_U_ICE are in to navigate the mine fields.
Posts: 1307 | From: Pittsburgh, PA | Registered: Jun 2006
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posted
Yes Tex, I do have concerns. Not enough YET to sell my position but there are many questions that do need to be answered. One thing that does have me in an inclination toward positive is some of the wording in the PR. Peter, the CEO, used the words WILL. In my short experience the one thing I have found is that the true scams will always use words like; hope to, plan on, is our desire. I think you get my drift. They seem not to use words in the affirmative that can later come back to bite them in the butt. So the wording of WILL initiate and WILL be supported give me some hope. The Jury, of which I am one, is still out on this one.
If at all possible the way I would play this is to be able to get my original investment out and ride the free shares into. That way there would be no pressure of making a mistake.
I still think this is possible since many proven scams run on greed alone. Many may decide that the risk is worth the reward and if enough buyers jump in the MM's will take it up in order to maximize their profits. Like they say don't fight the MM's understand their game and play along.
Just to clarify I am not ready to call this a Scam yet. I have researched the CEO and have yet to find him as the typical scammer.
GLTA Wally
Posts: 3255 | From: Los Angeles California | Registered: Jan 2006
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posted
ok, I am caught up on all the posts. Here is my read on this one.
1. You are NOT getting free money.
Investors are getting transitioned into private investors in a new company. It is not uncommon for that stock to be sigificantly lower than the IPO price. The company can restrict those shares not to exceed 12 months from public trade.
Now do I think that they can throw together a company worth a $48 IPO? Probably not.
Do I think I can lose on this deal? Yepper.
Am I going to sell my position> Nope.
Why? The potential risk * 25% of the stated is worth the risk at this point in time. That may change. If it does I will reassess my position.
-------------------- - "Pay it Forward" Posts: 1524 | Registered: Jun 2006
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