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

To: Dale Baker who wrote (15753)	11/6/2002 1:15:51 PM
From: Bob Rudd	Read Replies (2) \| Respond to of 78659

Dale asks <<Is all the dirty laundry now in the open with THC? Every time I think about buying, a nasty new headline comes out...>> Negative newsflow begets/amplifies negative newsflow...but most of this lacks real substance. Take the item that the Palm beach hospital might loose medicare standing - run the numbers on that [beds/total beds * % medicarare * 20% probability of loss [high estimate]] and you get a likely impact of less than 1/10th of a cent of eps. The 'raid' out in Calif was aimed at the 2 Doctors, not the facility, and even they weren't charged. The outlier thing is more complicated but analysis I've seen indicates that it's no biggie...more will come out in upcoming CC. The rebound today in the face of the outlier audit headline indicates some value players have taken a look at this and are using the weakness to build positions. When 'bad news' no longer plays, it's rebound time. There's a lot I don't like about this business - the regulatory & litigation risks top the list, but it looks oversold based on the reality behind the scary headlines.