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Strategies & Market Trends : Tech Stock Options

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To: Nancy who wrote (6736)4/3/1997 12:04:00 PM
From: Tom Trader   of 58727
 
>>Interesting you sold out COL - I was thinking if this investigations may make COL >>go down further, then could be a buy

Nancy, my decision to exit COL was based entirely on the investigations that have begun into different facets of the company's operations. I have no personal knowledge of what is entailed and how wide ranging these investigations are likely to be. What I do know is that the arrangements that COL has with physicians is under investigation and that it is likely that this could mushroom. The company is not always liked in some parts of the US, like FLA because of their aggressive tactics. This fact, combined with the political environment that exists where the Feds and individual states are looking at issues of Medicare/Medicaid fraud among providers in general, creates a lot of potential downside for COL. Also, Texas has been the hot-bed for some very serious problems that providers have faced with both state and federal regulators.

I am not suggesting that COL is involved in wrong-doing. I am just saying that it will take a while for all this too play out. COL is, in fact, a well-run company.

Take care
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