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Biotech / Medical : Primedex Health Systems, Inc. (Nasdaq BB: PMDX)

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To: The Pope who wrote (14)9/3/1997 12:10:00 AM
From: Edward P. Buzinky   of 39
 
Not a bad deal PMDX announced today: Sold for $13.5M today 90% of what they bought 20 months ago for $3.2M in notes. All our deals should turn out so good. The retained utilization review piece fits well with their management services focus - remember they manage DHSM's centers in CA, getting a 5% slice of the pie.

The value of CA imaging assets continues to rise. MRII announced the buy of 2 centers in San Jose today. MRII could use PMDX to solidify a leadership position in CA. They'll get more serious once they see fins showing PMDX debt coming down. Again, it would be nice for PMDX shareholders were USDL not having such severe cash constraints.

Look for PMDX to use the cash to take down more debt. As debt shrinks, and asset values continue to rise (esp for one with the leading CA franchise), and PMDX centers doing record scans, the equity piece gets three pops up.

Some smart guys bought some stock today. Nice volume, and it shows that this thing can move fast, but I'd like to see a trading day with closer to 1M shares bought. Then I'd feel a bit more confident.
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