On the backs of all of you silly mo-mo buyers. This POS company has absolutely NOTHING to offer. All you need to do, fools, is take a look at a very thorough analysis of the dire situation of this POS in today's THE STREET.
Kid, if you read carefully today's The Street article, you'll understand exactly why there was irrational exuberance here today. It's all technical. Nothing more. I've seen as many "big boys" on the sell side as on the buy side. It was pretty clear during the later part of the session that someone (big? Not so big?) wanted this thing to close above 10. Suckers never die, they're just being replaced. Btw, I shorted and covered today, made a sweet buck and went short again before the close. We shall see what we shall see. I've always believed that the market is a collection of reasonable human beings.
Highlights from the ratings report include:
Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Health Care Equipment & Supplies industry and the overall market, ROCKWELL MEDICAL INC's return on equity significantly trails that of both the industry average and the S&P 500.
The gross profit margin for ROCKWELL MEDICAL INC is currently extremely low, coming in at 12.60%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -91.35% is significantly below that of the industry average.
Net operating cash flow has significantly decreased to -$21.53 million or 232.03% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
The debt-to-equity ratio of 1.16 is relatively high when compared with the industry average, suggesting a need for better debt level management. Despite the company's weak debt-to-equity ratio, the company has managed to keep a very strong quick ratio of 2.71, which shows the ability to cover short-term cash needs.
In its most recent trading session, RMTI has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Turning our attention to the future direction of the stock, we do not believe this stock offers ample reward opportunity to compensate for the risks, despite the fact that it rose over the past year.