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Biotech / Medical : PHP Healthcare

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To: Jim Mac who wrote (59)7/14/1998 10:10:00 AM
From: DENNIS DOCKERY  Read Replies (2) of 136
 
John Kluge has purchased up to his limit of 15%. If PHP can achieve a
75% to 79% loss ratio, $50 to $70 reduction from HIP historical number, new enrollments in July, 5% to 8% rate increases. This company should have significate earnings and cash flow to report. I hope management is not too optimistic. Cash flow would increase for more buy backs if DC repayment is made.

The analyst are conservative in their reporting. The only thing keeping this stock down is the uncertainty of the convertible preferred stock. The short interest has won so far but things will turn and I hope they get squeezed against the wall. This company should have a stock cap around $400 to $500 million.

This negative sector should soon turnaround. A recent strong buy was made on Phycor (PHYC). This company has similar earnings forecast but their stock price is around the high 16's.

I hope we win and the shorts lose soon.

Still scooping

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