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Strategies & Market Trends : Mr. Pink's Picks: selected event-driven value investments -- Ignore unavailable to you. Want to Upgrade?

To: R.E.B. who wrote (11430)	9/8/1999 10:01:00 AM
From: Mr. Pink	Read Replies (2) \| Respond to of 18998

Mr. P$nk, feared lord of the internet initiates coverage of HCR with a rarely used rating of T4/F i.e. quadruple turd with flies and a proclomation that company earnings are of low quality and balance sheet is trumped up. The problems: $293 MM preferred issued by Genesis Health Ventures is carried at par on balance sheet. However GHV bank debt trades in the 80s and the public bonds trade at 52% of face or a 24% yield suggesting that a restructuring is inevitable. Preferred stake could be totally wiped out in the event of a GHV bankruptcy. Chairman recently sold 500,000 shares. Bank covenants allow maximum 55% debt as percent of total capitalization. If the company were to write off the potentially worthless preferred and if they included $200mm in Alterra bank debt that they guarantee for purposes of calculating ratio, company would be in violation of debt covenants with a ratio of .556% debt/total cap. (note calculation made using best efforts using publicly available information since company has refused to return repeated calls to Mr. P-nk's forensic accountants. Year over year occupance down. Rates under continued pressure. DSOs and Receivables heading higher. Mr. P$nk has spoken All opinions are Mr. P-nk's, a deranged and deluded celebrity on the internet who is disheveled, unshaven, walks around his filthy studio apartment all day muttering to himself in a torn bathrobe and types on His computer. He frequently forgets to take His medication and suffers from a variety of mental illnesses.