Noticed it as a holding of GRX, a Closed end fund that I have a position in.
Mostly Q 4 (Dec. 31) numbers, giving some consideration to the recent offering which raised some desperately needed immediate Cash.
Q 4 revenue...................$254 million
Gross profit.......................65.6 million
Here's the 2 things that really bother me and that are making profitability hard to achieve........
SG&A expenses..........$64.3 million
Interest expense.............9.3 million
**Add just these 2 expenses together ($73.6 million) and subtract them from the Gross Profit of $65.6 million and BIOS is already at an approx $8 million 1/4ly loss. They need to cut SG&A (hard to cut the interest expense) if they want any chance of achieving profitability anytime soon.
Might be cash flow positive, which is good, but investors look at profit, not cash flow (perhaps unwisely)...
Balance sheet.............Debt of $418 million is daunting. If they can grow and control other expenses, they may be able to "grow their way" out of the debt problem.
Accounts payable grew $27 million the last 3 months of 2014, which probably exacerbated the need for the March offering.
Goodwill of $573 million.........could be a huge write off (non cash) coming here someday. They've obviously made some big or numerous acquisitions to have built up such a large number in this area.
If the acquisitions aren't contributing profits (at some point)........current accounting law requires an accelerated write off of Goodwill. Not a horrible thing as it would be non-cash, but it looks ugly and sets a bad precedent.
Just my honest observations as a non holder........................Kel
Biggest position ever in SPXU @ 33.34....shorts the S&P 500 X 3. Market looks very tired. Good open today then struggling with (continued) low volume. In my opinion, we're ready for a healthy sell off. I've basically hedged all my long positions in my regular and IRA accounts. Also big cash positions.
BDCs having a very rough day. PSEC that I bought Friday really &(%$^#.
Now about $43.02.......guess it might have been a good selling area up above 44.50. I'm still holding. I didn't sell either.
Well, at least the short is working a lot better than my PSEC buy @ 8.31 on Friday. Should have just shorted PSEC.
Better chance of surviving. Big paydown of Accts Payable. More debt. Floor on oil prices. OK to hold, but be careful.
How can it get any cheaper? It'll probably find a way, but there has to be a bottom somewhere.
EPS report Wed. after the close. Maybe other news???
Declares next 3 months at .0833....unchanged. Opened actually up a few cents that got slapped down sharply. Holding a bunch. EPS report after the close. Yield over 12.5% depending on the wildly fluctuating price.