ProPhase Labs, Inc (PRPH)
Yesterday I was considering adding shares to my ASRT holdings. Assertio Holdings, Inc. is a Pharmaceuticals company founded in 1995. As most of you know, I prefer large-cap pharmaceuticals like ABBV and PFE, but I also like small-stocks because of their potential growth or the possibility that a giant in the industry might bid up the price in trying to acquire the small-cap company. This, of course, is a higher risk strategy, but it can be profitable.
One downside, for a dividend growth investor, is that small-cap stocks generally do not pay a dividend. I hold 1,500 shares of ASRT, and I was thinking about buying more when I found PRPH on Seeking Alpha.
ASRT Company Profile
Assertio Holdings, Inc., a specialty pharmaceutical company, provides medicines in the areas of neurology, hospital, and pain and inflammation. Its pharmaceutical products include INDOCIN, an oral solution and a suppository form for the treatment of moderate to severe rheumatoid arthritis, including acute flares of chronic disease; ankylosing spondylitis and osteoarthritis; and acute painful shoulder and gouty arthritis. It also provides CAMBIA, a non-steroidal anti-inflammatory drug (NSAID) for the treatment of migraine, nausea, photophobia, and phonophobia; Zipsor, a NSAID for relief of mild to moderate acute pain; SPRIX, a NSAID for the short term management of moderate to moderately severe pain that requires analgesia at the opioid level; and Otrexup, a single-dose auto-injector containing a prescription medicine and methotrexate that is used to treat adults with severe, active rheumatoid arthritis, and children with active polyarticular juvenile idiopathic arthritis. The company was formerly known as Assertio Therapeutics, Inc. and changed its name to Assertio Holdings, Inc. in May 2020. Assertio Holdings, Inc. was incorporated in 1995 and is headquartered in Lake Forest, Illinois.
Comparing the QUANT Ratings
Another reason I was tempted by PRPH has to do with the success I have had in using the Seeking Alpha Quant ratings. Here are some images to help you understand the comparison of PRPH, ASRT, PFE, and ABBV.
Diversification is the Answer
As tempting as it is to buy more ASRT, I decided diversification was a better approach. So I bought 1,000 shares of PRPH at $10.80 per share. My total cost basis $10,799.96. There is another reason that I bought yesterday. PRPH has upcoming quarter’s earnings that have an announce date of 08/11/2022 (Pre-Market). That means good news could quickly propel the shares higher, but it also means that bad news could quickly make my investment worth less. While ten thousand dollars is not small change, it isn’t going to break my traditional IRA, as PRPH is much less than 1% of the total investments in my traditional IRA. If you are buying an investment, always keep an eye on the percentage of the total when adding a new investment.
Also remember this cardinal rule: “There is no totally safe investment.” That includes everything that is temporary and nothing that is eternal. In Matthew 13:44 Jesus says, “The kingdom of heaven is like treasure hidden in a field, which a man found and covered up. Then in his joy he goes and sells all that he has and buys that field.”
I own 1,500 shares of ASRT as a long-term investment. PRPH may be a short-term investment if the price shoots up and then levels off.
ProPhase Labs, Inc. Company Profile
ProPhase Labs, Inc. engages in the research, development, manufacture, distribution, marketing, and sale of over the counter (OTC) consumer healthcare products and dietary supplements in the United States. The company operates in two segments, Diagnostic Services and Consumer Products. It offers a range of OTC dietary supplements, including Legendz XL for male sexual health; and Triple Edge XL, an energy and stamina booster. The company also provides contract manufacturing services, such as product development, pre-commercialization, production, warehousing, and distribution; SARS-CoV-2 (COVID-19) and COVID-19 viral mutation polymerase chain reaction tests through saliva and nasal swab methods; and other respiratory pathogen panel molecular testing services, as well as personal genomics products and services. It serves national chain drug, internet-based, and various regional retailers. The company was formerly known as The Quigley Corporation. ProPhase Labs, Inc. was founded in 1989 and is headquartered in Garden City, New York.