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Technology Stocks : John, Mike & Tom's Wild World of Stocks -- Ignore unavailable to you. Want to Upgrade?

To: John Pitera who wrote (1212)	6/6/2000 8:12:00 AM
From: Logain Ablar	Read Replies (1) \| Respond to of 2850

Morning John: On the Healthcare REITS as the article indicates you have to be very selective. Many of the care centers were hit hard when the medicare reimbursement laws changed a few years ago and they not only couldn't increase revenue but had significant decreases. I'll discuss this with my brother in law on father's day. He had the forsight to sell his elderly hospital chain right at the peak (I remember his comment the law was changing, it was going to be more difficult to make money and he needed to close the deal prior to Dec. 31) and he now consults vs. owns. The company which purchased his chain (I think it was 7 facilities, not sure of the bed #) did the classic over leverage spinning the land and building into a reit and these reits will be hurt by the rising rates. Many REITs should have done well recently just due to thier defensive position in a bear market. Tim

To: John Pitera who wrote (1212)	6/6/2000 11:21:00 AM
From: wlheatmoon	Read Replies (1) \| Respond to of 2850

john, my own take on the healthcare REIT's are from a personal perspective in working in the environment and not from perusing through the numbers. my perspective is that there are simply too many hospitals and many of them are poorly run. the competition is fierce and the general trend of healthcare is away from the hospital. hospital care is down and number of hospitalized days are being reduced. it is much cheaper to do some of the care outside the hospital. i know a little about tenet healthcare. they bought out a bunch of hospitals in the philly area after allegheny health care overextended themselves and went bankrupt. many of the models and goals pursued by these guys just don't work. my own personal exposure to the problems make me wary of investing in them. mike