Peter,
I stand by my analysis in exchange2000.com
I feel management is still trying to smooth things over too
much when they should be just coming clean. I sincerely worry about the company's ability to continue operations if further hits in
excess of $150M (no longer an outrageous number) come down the shute
in the form of Medicare restructuring charges, fines, and lawsuits.
If such hits come, it is possible that the regulatory authorities
would halt Oxfords operations on ST solvency worries.
At any price now, OXHP is speculation due to this risk. Based
on my trust of management and the state of the balance sheet
at the 3Q, this was not the case when I wrote the article. After
all, I had communicated with the company re: the article and there
is nothing there that they didn't fully and emphatically agree with.
So I was wrong.
Interesting that one of my favorite books, "Investment Illusions,"
tells a similar story that befell Community Psychiatric in 1991.
Re: such accounting latitude, it states,
"If you get bagged by a management team that has a long history
of producing nasty surprises, you share the blame."
Fool me once, shame on you. Fool me twice, shame on me.
Mike |
