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Biotech / Medical : Continental Home Healthcare -A Demographic Play

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To: Edward W. Richmond who wrote (49)12/22/1999 6:25:00 PM
From: Edward W. Richmond  Read Replies (1) of 69
 
After reviewing CHT's numbers and the prognosis for Q4 and beyond, I decided to take advantage of the tax-loss selling period. I purchased 10,000 shares at $0.41 and thought I had done well. It looks like I will be able to do better yet.
Yes, I am well aware of some of the negative aspects of the
company's operation.
- Q3 earnings, while not a loss were 0 cents/share.
- Options may be issued to the 20% level of existing shares (I'm not sure whether issued or outstanding) rather than the usual 10% for most companies.
- Options re-pricing is a black eye for the company.
However, if we get the expected improvement in Q4 bottom line over Q3, I think the current price is a bargain brought on by tax-loss selling by investors who are fed up with options concerns, missed targets etc. While I will monitor Q4 very carefully, I may have a long wait for the results as they may be issued with the annual report.
I would appreciate hearing from any investor who deems my current investing to be folly or sound.
Regards, Ed
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