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Biotech / Medical : HHCA. Home Health Corp of America

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To: Mr. Miller who wrote (3)9/4/1997 12:36:00 AM
From: Tom D   of 25
 
Some answers...

The news today was not good. In brief, an announcement that there are $2.1 million in receivables that are over 300 days old which they are now writing off, and another $900,000 that they want to budget for more bad debt. With about 10 million shares outstanding, there goes 30 cents a share down the toilet.

Also, I learned that the internal growth rate is down to 16% annually.
It was around 25% that last time I scrutinized this company.

I guess we should be happy we are not shareholders.

Off topic, maybe you should look at Fuisz (FUSE) and Collagenex (CGPI). These are the safest seriously undervalued biotech stocks I know. I expect Fuisz to quadruple in the next two or three years and Collagenex has good Phase III data. The FDA should be approving their Periostat (oral treatment for gingivitis) in the next 3 to 6 months for around a 50% jump in stock price.

Best Regards,

Tom D
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