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Redcare Pharmacy 💊

I wanted to ask what you think of Redcare Pharmacy $RDC (-0.33%) think? Does anyone have any more detailed information about the prolonged fall in the share price? The valuation now seems very, very low if you just look at the forecasts. Does anyone have an opinion? @Tenbagger2024
@Klein-Anleger
@Multibagger

Edit: Thanks for all the opinions. This shows once again that you have to look at more than just the growth rates.

6 Comments

Raketentoni@Raketentoni

"Hello Mr. PikaPika,
Here's my honest and direct opinion on Redcare Pharmacy (formerly Shop Apotheke):
For me, this thing is currently a classic 'growth at any price' trap. Yes, sales are growing strongly (+24 % to almost € 3 billion), which looks great at first glance. But what is the point of growth if the bottom line is nothing?
Here are the warning signs for me as to why I would be cautious:
Growth without profit: the company is still in the red (approx. € -39 million net result). Even the nicely calculated 'adjusted' EBITDA is only a meagre 2%, the real EBIT margin is even negative.
Burning money (cash flow): They are investing massively in logistics and automation. Although this is necessary, it means that the free cash flow is deep red (approx. € -87 million). This means that more money is currently flowing out of the company than in.
The chart does not lie: the fall of over 50% is no coincidence. The market simply no longer has any patience for 'story stocks' that generate sales but no profits.
Conclusion: If you want to bet on a turnaround and have strong nerves, you can gamble here. But if you are looking for quality, secure margins or even dividends, you are in the wrong place. For me, this is a 'no-touch' until the margin climbs sustainably above 5% and they prove that they can actually make money."

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Chris@Multibagger

I keep my distance. More and more competition now from DM. Rossmann will certainly be next.
This means falling margins and rising marketing expenditure.

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jkb92@jkb92

@Multibagger I agree with you, competition will increase massively, at least for the non-prescription part, and dm has a very large (and loyal) customer base with a high level of trust.

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Tenbagger2024@Tenbagger2024

A lot was said about this yesterday at OnVista Mahlzeit. Rather hands off

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BeachPlease@BeachPlease

I'm not sure whether there will be a third attempt.
In addition, the price is totally chaotic and I don't know where to open a relatively safe long position.
Possibly you could gamble on a dead cat bounce, but in any case let it settle first.

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Klein-Anleger@Klein-Anleger

Not my sector, group with numerous problems and an active downward trend...

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