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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (12546)	5/29/2001 5:30:20 PM
From: Paul Senior	Read Replies (2) \| Respond to of 78708

Starting a position in PHSY. To understand these managed care companies really takes detailed investigation and careful consideration of many external aspects which affect these companies. Lawsuits, government reimbursement policies, internal accounting policies for reimbursing physicians, and so on. For me though, understanding the business is not a necessary condition before I might undertake an exploratory position. From what I can tell PHSY is not among the better managed or innovative healthcare service companies. (That might be Trigon or Wellpoint). PHSY also seems to be the subject of several negative analysts' comments. Still price/sales is relatively low, expected p/e is low, there's a little insider buying (not enough to give investors a buy signal though, imo), and management seems to me to be trying to put its hands around the many problems the company faces. For example, by turning away unprofitable business. PHSY stock is very volatile. IF trading in future is similar to what we've seen in the past six months, there might be opportunities to buy this stock at much lower prices - as well as chances to sell profitably from today's level. Absent news on the stock, my intent will be to try to add more if the stock drops further. I'm also looking now at AET in this sector. finance.yahoo.com ------------------- aside: and fwiw. I closed out my position in REIT CLI at about breakeven. I just lost confidence in management after reading Yahoo thread. The Yahoo threads have a tendency to cause that -g-. Also, I'm starting to take some profits in Whirlpool (WHR). Hard for me to hold on to such a company when I see housing stocks retreating seemingly each day from highs achieved in the past few weeks.