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To: Richard Tsang who wrote (14589)	1/15/2000 1:20:00 PM
From: TheKelster	Read Replies (1) \| Respond to of 118717

Hi all, Just joining your discussion for the first time today. I like the concept of the thread. Hate the Rah Rah baloney. HRC. I bought this stock as it came up out of the base below 6. Rode it up to just above 7. It is working a minor to medium pull back. However, I am looking for a re-entry some time this next week. I believe this company is well positioned for a 50% move up. Other than the obvious TA recovery what I like most is the Institutional buying. I have been monitoring the Institution and Block trading the past week as I sat in the stock. Visiting the Thompson Institution tracking site, I am seeing this stock being solidly accumulated by institutional buyers. This is likely related to a strong Insider buying process that is taking place. If the insiders are scooping this up so strongly something must be up. Following Article gives us a clue: Analysts Cite Myriad Reasons For Steep Rise In HealthSouth Shares (Dow Jones Online News, Jan 11, 2000 18:03 hrs) NEW YORK -(Dow Jones)- Shares of HealthSouth Corp., a provider of outpatient surgery and rehabilitative services, rose sharply Tuesday on rumors of a management buyout. Birmingham, Ala.-based HealthSouth saw its shares (HRC) climb 68.8 cents, or 12%, to $6.625 on the New York Stock Exchange. But analysts also said an undervalued HealthSouth may be playing catchup to other health-care stocks which have rallied in recent weeks. Additionally, some analysts believe a new government report showing a slowdown in Medicare spending could be driving the company's stock. "It's probably more catch-up related to the hospital group," Jean Swenson, an analyst at Credit Suisse First Boston Corp., said of Tuesday's rise. "That's probably the sounder driver behind the stock move." Swenson and analyst Kevin Caliendo of Forum Capital Markets cited a U.S. Health Care Financing Administration report released Monday showing that growth in Medicare spending slowed to 2.5% in 1998, a record low, down from 6% the previous year. Meanwhile, private health-care spending accelerated in 1998 to 6.9% from 4.8% in 1997. The slower Medicare spending growth - brought about by the Balanced Budget Act and a crackdown on fraud - might ease the government's desire to continue cutting Medicare reimbursements, the analysts said. Medicare reimbursements accounted for more than 30% of HealthSouth's revenue in the third quarter. Caliendo added that HealthSouth's stock has has been hurt by accounts-receivables problems and said the company has to wait a "ridiculously high" 100 days on average to get paid for its services. Caliendo also expressed concern that the company might have to write down some receivables in the fourth quarter. As for a buyout, analysts couldn't confirm any information, but didn't dismiss the idea, which has surfaced in the past. Last month, Barron's reported that HealthSouth had been lending money to insiders to purchase shares. In the most recent reported transaction, Chairman and Chief Executive Richard M. Scrushy and Chief Financial Officer Michael D. Martin each purchased 10,000 shares last month, bringing their holdings to more than 5.1 million shares and 378,700 shares, respectively. As of early November, the company had acquired more than 36.2 million shares under a repurchase program. HealthSouth had more than 400 million shares outstanding as of its third-quarter earnings report. Copyright (c) 2000 Dow Jones & Company, Inc. All Rights Reserved. Companies or Securities discussed in this article: Symbol Name NYSE:HRC Healthsouth Corp © 1999 Quote.com, Inc. All Rights Reserved. Premium Hands, KK