Posted by: fortunefaded February 3, 2010
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ll_ll,
I will try my best to give you an idea why I think RPC is a buy. Let me start with the SEC filing. Why do I think this one investor is going to explode the price of this stock? The word is 'History.' Yes, you looked at the Form D they filed on 02/02/2010 where you can clearly see that Cantone Research Inc is putting in substantial investment in this company. If you look up on Cantone, it's a firm that invests in small cap stocks.
Now, lets check out the news from RPC's website for 2009.
http://www.radient-pharma.com/news/news2009.htm
Here's the link to their PR from May 08,2009------>Link.
On May 7, 2009, RPC had filed a similar SEC form D.----->May Link
If you look into that report, you will see that Cantone Research Inc had invested $2.5 million. Now, at the time of the filing, Cantone had already invested $1.32 Million and look at the date of that transaction. It is May 4, 2009. Here's what it looks like in the form:
Total Offering Amount $ | 2500000 | USD
--------------------
--------------------
Total Amount Sold $ | 1327250 | USD
--------------------
--------------------
Total Remaining To Be $ | 1172750 | USD
Sold --------------------
Date of First sale |2009-05-04 |
Now, lets go to the Charts and see what happened to the stock of RPC on May 4, 2009.
Holy crap, institutional money came in and the stock soared 28%. Can one investor cause the price to explode? Hey if you got enough money, you can do whatever you want. If you read the RP statement, Cantone bought around 212,360 common stocks. I am fairly certain, that Cantone's Investment caused the stock price to go up to $1.35 the next day.
Now, I don't know how much money Cantone is going to put in the RPC stock this time. But I bet you it's a large chunk of that 3.5 million. Their february 02 filing says they nothing has been sold yet. You will see volume coming in the near term and I expect this stock to take off 0.42 high it made few weeks ago. The reasoning is that the stock is dirt cheap. Listening to their recent conference call, CEO Dough MacLellan lamented on how ridiculously the stock has been beaten. He says something about how this will be the bottom in the company's history.
Now, more on the fundamentals:
On December, RPC came up with another PR saying one of their subsidiary AMDL will be profitable by the end of this year. They are projecting a net profit of 3.3 million. Their total shares in 17.4 million. That puts their EPS at .20. Now you tell me a stock with P/E of less than 2, especially a biotech is not dirt cheap!!! That's why institutional money is flowing in! Do you think anyone is going to dump 3.66 million if they don't think this company has potential. Look at their Onko sure cancer detection kits. They are making 81% gross margin on those kits. If they sell 16000 kits as they hope, they will be profitable and the stock will be at least 2 dollars.
Link to PR.
2010 OVERALL ADI SALES FORECAST
2010 QTR 1 QTR 2 QTR 3 QTR 4 TOTALS
---------- ---------- ---------- ---------- ----------
ONKO-SURE Test Kits $ 297K $ 621K $ 1.56M $ 2.01M $ 4.48M
---------- ---------- ---------- ---------- ----------
Onko-Care (U.S.) - $74K $ 745K $ 1.34M $ 2.13M
---------- ---------- ---------- ---------- ----------
Onko-Care (Asia) - - $ 298K $ 745K $ 1.04M
---------- ---------- ---------- ---------- ----------
Gross Sales $ 297K $ 695K $ 2.254M $ 3.795M $ 7.65M
---------- ---------- ---------- ---------- ----------
Op. Expenses ($740K) ($963K) ($1.099M) ($1.507M) ($4.306M)
---------- ---------- ---------- ---------- ----------
Net Profits ($543K) ($418K) $905K $2.288M $ 3.344M
I know about RPC's de-listing notification and I have looked at their Quarterly earnings for the past year as well. They ran into problems this year and I think the market lost hope. RPC planning to sell their Chinese subsidiary 'Jade.' Guess what the market value of Jade is right now? 20 Million! That's 4 times more than RPC's Market cap of 5 million. This company is about to fly and the average investors will come too late in the rally as usual.
I hope I have given you a comprehensive reasoning on why I think this is buy for both the short term and long term.
Good luck to you all and like I said small caps are very volatile and RPC dropped significantly today. I haven't put a stop loss on it yet but if it dumps below 0.25, I will get out.
FF
I will try my best to give you an idea why I think RPC is a buy. Let me start with the SEC filing. Why do I think this one investor is going to explode the price of this stock? The word is 'History.' Yes, you looked at the Form D they filed on 02/02/2010 where you can clearly see that Cantone Research Inc is putting in substantial investment in this company. If you look up on Cantone, it's a firm that invests in small cap stocks.
Now, lets check out the news from RPC's website for 2009.
http://www.radient-pharma.com/news/news2009.htm
Here's the link to their PR from May 08,2009------>Link.
On May 7, 2009, RPC had filed a similar SEC form D.----->May Link
If you look into that report, you will see that Cantone Research Inc had invested $2.5 million. Now, at the time of the filing, Cantone had already invested $1.32 Million and look at the date of that transaction. It is May 4, 2009. Here's what it looks like in the form:
Total Offering Amount $ | 2500000 | USD
--------------------
--------------------
Total Amount Sold $ | 1327250 | USD
--------------------
--------------------
Total Remaining To Be $ | 1172750 | USD
Sold --------------------
Date of First sale |2009-05-04 |
Now, lets go to the Charts and see what happened to the stock of RPC on May 4, 2009.
Holy crap, institutional money came in and the stock soared 28%. Can one investor cause the price to explode? Hey if you got enough money, you can do whatever you want. If you read the RP statement, Cantone bought around 212,360 common stocks. I am fairly certain, that Cantone's Investment caused the stock price to go up to $1.35 the next day.
Now, I don't know how much money Cantone is going to put in the RPC stock this time. But I bet you it's a large chunk of that 3.5 million. Their february 02 filing says they nothing has been sold yet. You will see volume coming in the near term and I expect this stock to take off 0.42 high it made few weeks ago. The reasoning is that the stock is dirt cheap. Listening to their recent conference call, CEO Dough MacLellan lamented on how ridiculously the stock has been beaten. He says something about how this will be the bottom in the company's history.
Now, more on the fundamentals:
On December, RPC came up with another PR saying one of their subsidiary AMDL will be profitable by the end of this year. They are projecting a net profit of 3.3 million. Their total shares in 17.4 million. That puts their EPS at .20. Now you tell me a stock with P/E of less than 2, especially a biotech is not dirt cheap!!! That's why institutional money is flowing in! Do you think anyone is going to dump 3.66 million if they don't think this company has potential. Look at their Onko sure cancer detection kits. They are making 81% gross margin on those kits. If they sell 16000 kits as they hope, they will be profitable and the stock will be at least 2 dollars.
Link to PR.
2010 OVERALL ADI SALES FORECAST
2010 QTR 1 QTR 2 QTR 3 QTR 4 TOTALS
---------- ---------- ---------- ---------- ----------
ONKO-SURE Test Kits $ 297K $ 621K $ 1.56M $ 2.01M $ 4.48M
---------- ---------- ---------- ---------- ----------
Onko-Care (U.S.) - $74K $ 745K $ 1.34M $ 2.13M
---------- ---------- ---------- ---------- ----------
Onko-Care (Asia) - - $ 298K $ 745K $ 1.04M
---------- ---------- ---------- ---------- ----------
Gross Sales $ 297K $ 695K $ 2.254M $ 3.795M $ 7.65M
---------- ---------- ---------- ---------- ----------
Op. Expenses ($740K) ($963K) ($1.099M) ($1.507M) ($4.306M)
---------- ---------- ---------- ---------- ----------
Net Profits ($543K) ($418K) $905K $2.288M $ 3.344M
I know about RPC's de-listing notification and I have looked at their Quarterly earnings for the past year as well. They ran into problems this year and I think the market lost hope. RPC planning to sell their Chinese subsidiary 'Jade.' Guess what the market value of Jade is right now? 20 Million! That's 4 times more than RPC's Market cap of 5 million. This company is about to fly and the average investors will come too late in the rally as usual.
I hope I have given you a comprehensive reasoning on why I think this is buy for both the short term and long term.
Good luck to you all and like I said small caps are very volatile and RPC dropped significantly today. I haven't put a stop loss on it yet but if it dumps below 0.25, I will get out.
FF