Richard Jeffs, 10% owner of Cell MedX Corp. (CMXC, Financial), purchased 22,500 shares in the company between Nov. 2 and Nov. 10 according to the Securities and Exchange Commission.
Jeffs purchased 5,000 shares for 28 cents per share on Nov. 2. He purchased an additional 5,000 shares for 25 cents per share on Nov. 8. He added 2,500 shares for 25 cents per share on Nov. 9, then he purchased an additional 2,500 shares for 25 cents per share on Nov. 10.
Jeffs now owns 2,222,732 shares in the company.
Cell MedX was incorporated as Plandel Resources Inc., a startup pre-exploration mining company in the Philippines, on March 19, 2010. The company then changed its name to Sports Asylum Inc. on March 19, 2012 and continued to operate as a mining company before it changed its name to Cell MedX on Sept. 30, 2014. The company then changed its business toward the discovery, development and commercialization of therapeutic products for patients with diabetes.
Cell MedX is in its preliminary development stages. The company currently has no employees other than its executive officers according to its most recent 10-K filing.
Cell MedX has a market cap of $10.86 million, an enterprise value of $11.55 million, a current ratio of 0.03 and a quick ratio of 0.02.
According to GuruFocus Cell MedX has a 1 of 10 financial strength rating with a cash-debt ratio of 0.03, an equity-asset ratio of -6.52, a Piotroski F-Score of 5 and an Altman Z-Score of -42.94 indicating the company is in the stress zone and is in danger of filing for bankruptcy within the next two years.
GuruFocus gives Cell MedX three severe warning signs to which investors should pay attention.
- The company’s sloan ratio represents poor quality of earnings. When the Sloan ratio (-556.88%) is higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
- The company continues to issue new long-term debt. Over the previous three years, it has issued $1.081 million of debt.
- The company’s days inventory is building up. If a company builds up inventory, it may mean that it's having difficulties selling its products.
Disclosure:Ă‚ Author does not own any shares in this company.
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