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Biotech / Medical : HRC HEALTHSOUTH -- Ignore unavailable to you. Want to Upgrade?

To: Toby Zidle who wrote (167)	11/10/2001 4:47:43 PM
From: blankmind	Respond to of 181

- here's my thoguhts on HRC which are mostly positive: - on Al Frank’s newsletter & his mutual fund's #6 holding; which is good b/c his fund focuses on value has low turnover of 30% - part of s&p 500 - including goodwill, $3.6 bill in stockholders equity/400 mill shs o/s = $9 book value. Stock at $12.20 - seem to have profits of about $.80/share a year. But w/ all the impairments, sales, etc... going on, it's hard to say - lot of financing at higher interest rates. But I see they just did $500 mill in sep '01 which will they say will be used to pay down debt; which I hope means lower interest expnese - int expense of about $200 mill a year. Imagine if they could bring this down especially since net income only about $200 mill a year - doing lots of cheezy deals w/ GNC & others to take advantage of their captive audiences & raise profits - excellent coverage by goldman sachs & others

To: Toby Zidle who wrote (167)	11/10/2001 6:47:20 PM
From: blankmind	Respond to of 181

- Toby, - I'll do one better & go back to jan '99 - from the beginning of this thread - from the start, lots of questions about its expansion & cash flow - lots of analyst coverage, usually positive - seemed to be putting in place integrated accounting & processing systems to reign in admin costs; also to streamline the in-processing of patients - repurchased stock big in '99 ($256 mill to repurch shares in '99 - wow!); but only $18 mill in 2000; I think zero now. But I think in '99 the stock avgd about $10, so in hindsight, a smart move - amazingly, I see where company keeps saying they'll meetin earnings; & no negative earnings announcemnts. But looks like they lost a lot on various webmd-type ventures - in march 2000, they're emphasizing tech imprvments to be better positioned in the future. Hopefully, we'll start seeing that now - in 3/00, prez said they'd do $.70/sh; per 10k, they did $.71 on $279 mill of net inc, so it appears they can project accurately (also, this includes massive amt for amortiz, interest exp, etc..) - stock's all-time high only $31 in '98 - earnings trend up - hmo's keep raising rates on higher health care costs which should mean healthsouth's profits bode well