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Biotech / Medical : Matria Healthcare (MATR)
MATR 2.680+0.2%Aug 20 5:00 PM EST

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To: Gregory Cole Brock who wrote (92)12/8/1997 1:17:00 PM
From: GREATMOOD  Read Replies (1) of 220
 
Greg,

This is a great story about a low priced stock that is the dominant provider of maternal home healthcare services. Matria's stock has become a great value play because of a couple of problems they had this year which have basically turned out to be non-events. They do $130 million dollars in sales, have almost no debt, have a significant tax credit due to amortization of goodwill, and they have lots of cash. If you quickly look at Matria's earnings report, they seem to show losses, but this is very deceptive because they are actually profitable from ongoing operations. It is the write-off of goodwill that hides their true positive earnings. Matria just completed a major restructuring and is reinventing itself. It has become a lean mean fighting machine, and the new management is very concerned about maximizing shareholder value.

Happy investing.

GM

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