The last time we covered Rotech Healthcare Inc. (OTC:ROHI), it had just hit a nine-month low of $2.13 per share. Six weeks later, ROHI stock has reached a new low.
Closing at a 52-week minimum of $1.33 per share, ROHI drifted further away of its glory days when ROHI shares used to be traded above the $4.50 threshold. Having occurred on Nov. 22, this negative record remained unchanged on the last trading session before Thanksgiving Day.
Thus, ROHI’s performance in the soon-to-begin forthcoming session will to a large extent determine the direction in which ROHI stock will go in the next couple of weeks.
Earlier this month, ROHI filed a full-blown 10-Q form outlining the third calendar quarter of 2011. According to the report, the company’s financial state as of Sep. 30, 2011 showed:
- cash reserves in excess of $33 million;
- working capital surplus of $75 million and ARs of the same size;
- quarterly loss of $1.6 million.
At first sight, ROHI’s financials might seem stable enough to endure future losses, the overall situation seems a little bit different. On the one hand, ROHI’s accounts receivable exceed $74 million. On the other hand, the company has a long-term debt of $510 million and it has only decreased by $0.9 million for the last nine months. If the company continues to pay it off at this rate, it will take ages before the loan has been fully repaid.
