Tuesday, April 20, 2010

Quick Analysis: Radient Pharmaceuticals Corp (RPC)

RPC: Radient Pharmaceuticals Corp

Recent Range: $0.25/share - $2.00/share (Current Price: 1.21, as of close of 4/20/10)

Price/Sales (P/S) = 1.17 (35.14, Industry)
Price/Book (P/B) = 0.98 (4.60)
Gross Margin = 46.4% (59.8%)
Pre-Tax Margin = -47.6% (-446.4%)
Debt/Equity Ratio = 0.08 (0.30)
Current Ratio = 0.1 (3.0)
Return on Equity = -34.0% (18.4%)
Return on Assets = -32.8% (8.6%)

Analysis: Based on the numbers, this is not something that I would recommend.

This is accompany that does not have much debt, and the Price/Book is pretty good, especially for being a pharmaceutical company. However, it seems like there is very little cash available, and their returns have been horrible.

It’s apparent that something changed recently, because this stock was hanging at a really low price for an extended period. Then it suddenly spiked. The price has relaxed, somewhat, but I’m not very sure how to read it.

The company seems to predict great sales. They seem to have a product that identifies cancer (Onko-Sure) in several areas by a simple blood test. They have skin care products, including anti-aging, which should have an attentive population, given that the Baby Boomers are getting older.

I do not know how good their products are or how their reputation carries them. I also do not know their marketing plan.

There seems to be potential on a product level, which makes me wonder whether someone might buy out this company. However, without that happening, I’m not sure that they are built for the long haul.

This is a highly speculative stock.

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