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

To: Shane M who wrote (44302)	9/11/2011 11:53:39 PM
From: Jurgis Bekepuris	Respond to of 78670

Shane, Looking at Yahoo numbers, MDFs OCF was significantly lower than earnings in 2008 and 2010 finance.yahoo.com . Looking at their latest 10Q: yahoo.brand.edgar-online.com it seems that the same thing is happening in 2011. In fact, after the capex and "physician practices acquired" they produced almost no FCF in h1/2011. Apparently, in 2010 they got a big boost to OCF/FCF in second half, so it's possible this is just periodic fluctuations, but they make me concerned. I think the fluctuations can be explained by understanding their cash transfers to/from Humana. I am just not sure if MDF is playing games with this or Humana is and whether the games are completely innocent. It's also possible that the cash effect is due to some government paperwork/timing. Still, it would be nice to know how come the earnings/OCF differs so much even over extended periods. Personally I am not interested enough to dig further. Good luck with it.