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Biotech / Medical : Oxford Health Plan (OXHP) -- Ignore unavailable to you. Want to Upgrade?

To: Christopher White who wrote (253)	11/24/1997 3:13:00 PM
From: Michael Burry	Read Replies (1) \| Respond to of 2068

Christopher, I've noticed that many in the press have touted "huge unpaid liabilities" in exactly those words. Do these people mean liabilities yet to appear on the balance sheet? The $50+ million charge that Oxford took against against medical claims payable is already on the balance sheet, and represents expected claims. This is an estimate, no question, but it is an estimate that includes an "extra" $13 million as advised by KPMG and the NY insurance board. Further, Oxford's balance sheet is strong enough to pay all current liabilities (including expected medical claims) right out of cash and still have the AR left over. And the AR is a much stronger number too, due to the $40+ million charge against it that Oxford took to write down uncollectable bills and nonpaying enrollees. If anything, Oxford went to great lengths to overestimate AP and underestimate AR during this past quarter. From the "huge unpaid liabilities" that keep getting bandied about, one would think we were talking about a billion bucks. Another interesting thing is that even amidst all this, Oxford's medical loss ratio improved. Many are simply assuming that Oxford's case management of risk went down the tubes too, which isn't the case. Then again, if the masses didn't overreact, there wouldn't be these opportunities. Re: the $270 million advanced to providers, Oxford may have goofed here. What Oxford did was advance to providers basically "blank checks" in order to keep providers happy. IOW, "We don't know how much we owe you, so you tell us." Again, several providers have contacted me to say that this helped a lot with credibility. Problem is, now that Oxford knows how much it owed, it realized that many physicians had overcharged. Oxford is now trying to reclaim some of this overpayment. Fat chance. No doubt, the whole mess is a big blunder, but the overreaction is stunning. To be fair, many are just doing the logical thing and getting in some tax-loss selling. One way to look at the stock is as a Ken Fisher "Super Stock" undergoing a glitch. His book is called "Super Stocks" and is available everywhere. Good Investing, Mike

To: Christopher White who wrote (253)	11/24/1997 4:50:00 PM
From: men mailman	Read Replies (1) \| Respond to of 2068

It is interesting that you are pulling out articles a month old with old news. You are basically retelling us what happened in the beginning of Nov that oxhp slid from 80 to 23. However as people have rethought over the past month, things are not as gloomy as they originaly thought, The company sees great growth in 98, has 669 mil in cash which is great liquidity, HAS TOLD ME TODAY THAT ITS PROBLEMS ARE BASICALY FIXED. So I realy don't get your point in posting old news.