Health Management Systems, Inc. (HMSY)- Great BuY! Message Board

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Biotech / Medical : Health Management Systems, Inc. (HMSY)- Great BuY!

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To: Ken Reidy who wrote (11)	3/17/1997 3:39:00 PM
From: Ken Reidy	of 203

Another AOL post: Subj: Re: Info Date: Mon, 17 Mar 1997 13:25:34 EST From: WizeEyes Message-ID: <19970317182501.NAA26040@ladder01.news.aol.com> First of all to JPVMPH, you should stop assuming things. I know the management at HMS as well, a lot of them I know personally. So don't make the assumption you know them better than I just because you worked there in the past. Even when the company was doing well they were pretty tight-lipped with the public. They've never been big on PR and hyping themselves and until recently haven't had any reason to. If you knew the management as well as you claim to you would know that the CEO of the company has always felt the as long as the numbers are strong there is no need for flashy Annual Reports and no need to toot your own horn. As long as you have strong numbers you will have investors. Let the numbers speak for themselves. And that philosophy worked until the stock tumbled. I admit my tone was on the cynical side in my last posting, but I think you're way off base suggesting that the management would do anything to manipulate the value of the stock. I'm especially surprised to hear such theories/assumptions from someone who has invested as much as you have in the company. And I haven't seen any evidence of unusual insider buying or selling that supports what you state. If there is an unusual amount of buying now that the stock is so low, it's because the price of the stock is so low I've been buying and selling this stock since it first went public. I've followed what's happened at the company quite thoroughly. Regarding the client that filed suit. As far as I know there is no client that filed suit, but rather a contract dispute with HHC, their largest provider client. As of 3/10 the contract re-negotiations remain unresolved. There has also been serious fee pressure from other clients. Analysts have been critical about HMS's insufficient marketing and sales infrastructures. The company has relied heavily on it's existing client base while adding very few new clients. Though HMS has actively been recruiting a new executive to be responsible for sales and marketing, they have not yet filled the position. Analysts feel that this slowing of revenue growth will not be corrected until a concerted marketing effort is employed and this process could take several quarters to happen. Another issue that has analysts hesitant is the acquisition of the remaining 57% interest in HISCo which HMS currently does not own. While acquiring the remaining interest in HISCo can be viewed as a favorable move by HMS, it also means that HMS has to make both a significant financial investment as well as dedicating the time by it's management. This acquisition and the acquisition of Global Health are transactions that won't show a positive return in the near future. So there are a lot of things happening at HMS, but they are all things that will only benefit HMS in the long-term. This is a rebuilding year for HMS. So as I stated before, don't look for any quick turn-arounds here. It's going to be a few quarters before the analysts say "BUY." It's not because the analysts don't have the guts to say it's a BUY. It's because the analysts are waiting for HMS to go through this rebuilding period. They want to see results. I'm confident they will see these results in time. If you invest in HMS now you better look long-term. I think these are bargain prices and I'm in it for the long-term.

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