Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Paul Senior who wrote (12547)	5/29/2001 6:35:38 PM
From: sjemmeri	Read Replies (1) \| Respond to of 78714

>I just lost confidence in management after reading Yahoo thread. The Yahoo threads have a tendency to cause that -g-. Do you find useful stuff on the Yahoo threads also? Or should you stop reading them?

To: Paul Senior who wrote (12547)	5/29/2001 7:56:55 PM
From: Brendan W	Read Replies (2) \| Respond to of 78714

re: PHSY I started a position at the open today. I would have been well served to wait, but... Management's EPS guidance (4/5/2001) is still 2.94 for FY12/2001. My understanding is that this does not include approximately $2.50 in goodwill amortization expense. If you add that back PHSY closed at a multiple of 3.5 times forward cash earnings. If I am wrong about this, please let me know.... this is hard to believe for a company with over $11 billion in revenue. In exchange for that valuation, you have to accept the following "cons": - large exposure to California - large national exposure to medicare - medical cost ratio has risen to 90% - large amount of short-term debt due I believe in 1/2002 - the senior debt rating has decreased to ba3 from investment grade over the last two years - company is changing provider contracting from capitation to risk-based/fee-for-service. This entails different capabilities, greater capital expenditures, and also changes the timing of revenues/expenses/liabilities making financial statements less comparable to prior PHSY statements I also bought Midas (MDS) at around 10x earnings. It was touted in Barron's two editions ago by a value manager. I like the idea of nationally branded auto service. I also own Pep Boys which has worked out well for me.