TURD ALERT TURD ALERT TURD ALERT
New short recommendation: T2/F PDX Pediatrix (30 7/8)
recommendation: PDX inititating coverage with a rating T2/F (Double Turd with flies).
PDX stock has been under seige since the company announced a change of auditors to KPMG following a bizzare revelation that the SEC shit-canned its old auditor Price Waterhouse since a PW auditor held 150 shares in his Personal Acount. Subsequently, KPMG said that the receiveables looked bogus and that the company had been capitalizing certain acquisition costs that should have been expensed.
The company specializes in neonatal care and basically buys up doctor groups and takes care of their billing...Miraculously PDX get much more juice because supposedly their billing systems are so much better. Growth of like 20--50% when PDX takes over....Not surprisingly, in addition to accounting irregularities, the company has been rumored to engage in widespread "up coding" charging for more expensive procedures than they are allowed to which would be a serious no- no and possibly shut down the company.
Todat the company had a super secret top secret meeting to address such allegations. Mr. pink has no idea if such charges are true, but He is concerned about the company's defensive posture and violent ways against people they perceive to be shorts...What follows is a true story about the trauma undergone by an affiliate of Mr. Pink 's who was a shareholder of the company but decided to short the stock heavily after being publicly humiliated and harrassed.
Where is the Humanity?
An affiliate of Mr. Pink's attended the super secret exlusive meeting at the Plaza Hotel today. Since the company chose to be so super secretive
and to SELECTIVELY DISSEMINATE INFORMATION, Mr. Pink has decided to share some knowledge with you all.
Results were hilarious...Here are some highlights:
PDX employed some big goon at the door to keep out unfriendly shareholders. The company had invited its usual bunch of ass-kissing analysts
(investment banking fee whores) and other sycophants.
Mr. Pink's affiliate was prevented from entering the meeting but found a back door entrance. The goon and the IR dope Bob "the Lapdog"
Kneeley tried to kick him out. However, the affiliate made a scene and told them to explain why they were kicking out a shareholder at which
point they allowe him to remain....Here are the high points.
The matronly doctor who is head of the Medical Board, Dr. Joyce "the Premie Milker" Peabody gave an excrutiatingly detailed review of the
company's procedures for coding and billing.
She actually called doctors who coded bills conservatively "wimps". So much for the impartial Head ethicist.
Then Roger "push the pedal to the" Medel, MD answered a few questions....but surprise surprise....not from Mr. Pink's affiliate!
The affiliate just wanted to know, How many MD's have been fired....How many of these angry MDs have sued PDX.
Also, How many hospitals have canned PDX? Mr. pink knows of many, but the company doesn't want to admit it.
Then the chief dork and compliance officer Ron "none too" Wiser from the company's outside compliance firm spoke for what seemed like for
ever saying absolutely nothing...guess what the company has a complaint hotline....The catch is that it was put in in January!
Next the esteemed attorney from Davis Polk gave a lesson in the ABCs of shareholder litigation... He seemed like a fine gentleman and an
excellent attorney. Unfortunately, these plaintiff's lawyers have the ripped the eyes out of a few fancy NYC firms in such matters...The suggestion
was that the case would be thrown out. It shall be seen.
Then the Q&A session and the shorts started to come out of the woodwork....Gee, how does the company translate its sophisticated billing
system into revenues and receiveables? No comment....
Then Roger admitted that ROUGHTLY ONE HALF OF DEALS IN THE PIPELINE HAVE DECIDED NOT TO CLOSE PENDING
COMPLETION OF THE ACCOUNTING INVESTIGATION! They are continuing with due diligence but deal closings will stall!
Also Dr. Roger claimed that PDX has never been charged with unethical or illegal behavior....Mr. pink believes this not to be true...but He will
reserve judgment until He can verify certain reports made by His operatives in Broward County, if you know what He means.
Net net, the meeting makes Mr Pink wonder...
1)why have this meeting on billing when the only charges against them have been for their fraudulent accounting practices not billing? Are they
trying to anticipate future bad news
2) Why have the meeting under a veil of secrecy? What do they have to hide?
Mr. Pink would love to hear from anyone with insights on this matter. He will review His rating with a possible downgrade next week to T3/F.
mr. Pink
All opinions are mr. pink's who may have a short position and may cover without telling you....do your own due diligence....Caveat Emptor....Carpe Diem.....Davis Polk rules! |
