Air Methods (airm) Message Board

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Microcap & Penny Stocks : Air Methods (airm)

AIRM 42.95

0.0%

Apr 24 5:00 PM EST

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To: Hijacked Account who wrote (688)	8/13/1998 10:47:00 AM
From: Elliot Lepler	Read Replies (2) of 877

Bill, I do not think you have the analysis quite right. The January crash increased expenses, so the collections do not flow to the bottom line as smoothly as they seem. However I suspect that half the number for the settlement could be removed from profits-still something important. Then the bad debt comes out in the wash. If they reserve more and collect better, it shows as increased earnings. The reserve is just a guess. So I would not attribute any contribution of significance to the bad debt issue with Mercy. Mercy did not contribute anything to earnings in q1. Last year q3 was Mercy's big quarter. It will be interesting to see what comes this year. Finally I do not think that lower fuel costs affects the profits much at all. For most of the hospital contracts, the company collects a fixed amount per flight or per hour or something like that. Also unlike the commercial air carriers, fuel cost is very small compared with say crew costs. The big disappointment in the current numbers is in the manufacturing business. They lost money there in the first half. We all had hoped that the 7 Sikorsky helicopters work would be underway by now. The 10q now calls for the work "late in 1998." When that division begins to contribute to the bottom line, we will be very pleased. I have been waiting longer than I would have preferred for that to happen. I really thought we would see something late last year or early this year. We need some of the wild cards to come to fruition. Mercy acquisition was one. Maybe something else in the manufacturing division. Or perhaps something from Patricof. I think we are in a good position at $4 with relatively little downside. A good value. I am pleased that more of the stock is moving into institutional hands. I suspect we will see some positive price action before the q3 report. Remember the quarter is half over. I am not planning to sell a share anywhere near this price. Elliot

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