PAWS - MESA-Praxsyn Visit: Below is an excellent recap by fellow BIG member Chris Dhames whom took the time to visit the MESA-Praxsyn (PAWS) offices last week. BIG thanks goes to Chris for his efforts and contributions. Alright guys, I’m back home after another 4 and ½ hour drive; thankfully my 16 year old daughter did not destroy my condo while I was gone this weekend (although there was some very suspicious pre-arrival clean-up that I’m still investigating). Before I get into this review I just want to send out a thank you to the bulls on the PAWS board who continue to hold the line and had my back while I was away (Dip, OhMan, Tut, Andal, Learning, Heavy and everyone else who sup). Thanks guys. There were 3 reasons why I took the drive down to Irvine and the Praxsyn, MESA subsidiary facility. 1. Verify the authenticity of the business. 2. Discuss the OTC market with the PAWS executives. 3. Get answers to a number of questions that we as PAWS shareholders should have access to. First impression of the general area upon arrival was a good one. MESA is located in a modern, very vibrant, lower business district. The area is clean, well maintained and hosts a number of brand identifiable businesses such as Union Bank, Starbucks, Fedex Shipping Center and an American Airlines office. One of the issues we’ve had identifying the MESA facility was that when viewed on Google Maps Street View, it pulls up a Nail Salon. Google Maps is actually correct; MESA Pharmacy is located at 18013 Sky Park Circle, Irvine, CA, but you have to drive around the far side of the building to get to it. The facility is actually composed of two separate buildings. I managed to grab a couple photos of the exterior of MESA Pharmacy, but did not get a chance to take any photos of the corporate building, however; in the first Street View photo above, you can actually see the corporate building directly above the blue painted line. It’s not marked as Praxsyn or MESA, but that’s where they are, directly across from the Pharmacy. We’ve known for awhile that MESA is primarily a workman’s comp operation and not a walk-in Pharmacy, however; they do support walk-ins. Upon arriving for my meeting, I ran into five MESA employees hanging out in the front lobby, trying to groupthink their way toward a lunch place. They were friendly enough although they did not seem surprised at my presence. I did ask one of the employees how long she had worked there and whether there had been much hiring lately. Her response was that she had been hired about 6 weeks ago and indicated yes, there had been some hiring going on. The receptionist was also present. I was given the Non-Disclosure Agreement, which I then reviewed, and signed. I was greeted by Ed Kurtz, the CEO and, after signing the NDA, taken to a conference room where I also met Dan O’Brian, CFO of Praxsyn. While I can’t disclose the details of our conversation, I can tell you that any conversation of the Quarterly report and financials were not discussed. I was given zero information on what the Quarterly will contain and what future revenue will look like. I did not even ask. This should not be a surprise to anyone because, frankly, it would have been a red flag if they were willing to make those disclosures on a first meeting. I found Ed Kurtz to be sharp, inquisitive and curious. He was receptive to the message I conveyed, asked intelligent questions and challenged me in a few places on some of my more speculative assumptions. He demonstrated an awareness of personal character strengths and weaknesses, publicly acknowledged his team and individual contributions in front of them and seemed to be very well regarded by his employees. My initial feel for his leadership style is that he is a strong team builder and seemed to display a knack for empowering his employees. Time will tell whether or not Ed is the right person to helm the company but I walked away with many of my concerns alleviated. With regard to Dan O’Brian, the CFO, I found him to be very sharp and engaging. He was very on-point, mentally disciplined, and struck me as a forward thinker. In the short time that I conversed with him, I got the sense that he understood all of the different pieces of the puzzle that is Praxsyn and seemed very comfortable in his role as CFO. I suspect Dan is the backbone of the operation although I did not have enough time with him to really get a sense of how much he actually controls. Regarding Praxsyn the company; I couldn’t help but feel as if it were a family-friendly business environment. While I can’t say much about the tour, I will state the employees I met seemed genuinely friendly and content to work there. It was apparent everywhere I looked that they were also in the midst of a strong growth phase. I cannot disclose information on the number of employees, but I can and am willing to say that this is definitely not a 2-man paper-pushing operation like many have feared; as is the majority of the OTC. They have employees, and a lot of them. Revenue, Balance Sheet and Cash Flow still need to be proven out but this company does appear to be an authentic, small business company in break-out mode. Whether or not they can manage their growth phase effectively remains to be seen. Regarding my goals: I was able to verify #1, that the company was real and does exist; and #2, I felt that Ed Kurtz was receptive to the message I delivered. No guarantees were provided, but I believe that perspective was established. It’s now up to us to reinforce that perspective and I will continue to work that channel as I can, with your help. I was not able to retrieve answers to the questions shareholders sent to me, although I plan to submit these questions to Ed and Dan O’Brian later this week and with a little luck, we may get some answers in the near future (no guarantee on this). So that’s it. I wish I could disclose more of the mechanics of what I saw of their operations but until they decide to go public and discuss the subject, I’m not at liberty to say. Everything I’ve mentioned should only confirm what shareholders already know or have speculated on. Everything I’ve mentioned here in this document is intended as my own personal confirmation of public facts provided by the company and/or opinion based on those facts. Disclaimer: As always gang, please do your own Due Diligence and don’t rely solely on my own information to base your investment decisions on. The information I gather and disclose is used to perpetuate further research and discourse and should not be used for trading purposes. My opinions are often based on incomplete data, and are at times, inaccurate. Please accomplish your own Due Diligence before investing and verify, verify verify.
Posted on: Tue, 24 Jun 2014 03:40:08 +0000
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