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Microcap & Penny Stocks : Hearx(EAR)

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To: John Goodman who wrote (126)6/9/1997 10:15:00 AM
From: CONANN   of 383
 
I get a lot of my information directly from the Company via their internet address, www.hearx.com. and from their direct participation in America Online, in the personal finance and company reserach sections. They certainly have the cash to build another 200 centers. The price probably will not be affected until earnings or other hugh contracts are signed. The delays are caused mainly be the delays in getting approval from HCFA which is the administration agency that approves insurance companies who are entering into the Medicare contracts for the first time. These contracts usually take 3 - 6 months to get approval and vary in times from state to state. Many of the contracts signed by Hearx have yet to be approvedd by HCFA as the time is longer, especially since Medicare has incurred so much fraud over the years. The contracts will certainly maximize their contracts to Hearx in late 97 and certainly in 1998 which should be the break out year. The stock is at a bottom and to me is a good time to buy more. I agree it will have to be held probably until late this year or early year before any major movement occurs. This company can become big. Being financially sound, the Company will certainly grow and reach its target of $500 million annual revenues in 3-5 years. Call either Paul Brown , Chairman, or Tommy Kee, Vice President at 1 800 323 3277 as they will answer any of your questions. That is where I get a lot of my info.
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