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.

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

To: Christopher White who wrote (256)	11/24/1997 5:19:00 PM
From: men mailman	Respond to of 2068

You seem very bearish or short. You are pointing to old info and are fearing the worst possible situations. As michael Burry pointed out the $250 mil is grossly exagerated and in direct conflict with the companies numbers as we know them now and not Nov 1. As to oxhp's loss ratio the same thing again you are basing your assumptions on false premises. The company believes its problems are 99% fixed. Oxhp is a very strong company and strong balance shees with growth etc. It had a problem but by all means this problem is not catastrophic it costed the company 50 mil. or $1 a share so what. You further have to understand that oxhp with its large base has to stay in business for if not millions will be left uninsured, there are not many alternatives so even if the worst would of happened there probably would of been some bailout. However this is not the case since oxhp is probably one OF THE HEALTHIEST AND STRONGEST in the industry NOW. Lightening does not strike twice and in all probability the problem will not repeat. As to the technicals, Sure that is as of today then when it starts to reverse you will read the technicals differently (as a bottom and breakout). In every bottom there is this day when there is a reversal of the technicals it is just you have to be smart enough and call it beforehand if you are to benefit. Furthermore as to the technicals I do see strong support at these levels with volume trickling down and the supply of sellers (of the 79 mil shares which traded 3-4x the float in the lasst month) trickling down. Any good news sends these shares soaring since there will be little amount of shares available at these levels, Especialy when news comes out to support that the whole thing was way overblown and eps are still expected a 1.50-2.00 in 98, with $8 per share in cash and who knows maybe the $50 mil reserve was in fact overestimated and conservative and the company still gets back some of it. I see this as a buying oppurtunty

To: Christopher White who wrote (256)	11/25/1997 12:23:00 AM
From: Michael Burry	Respond to of 2068

<<I do think that "hugh unpaid liabilities" means that many of the Wall Street professionals expect OXHP's loss ratio over the last 10 months to be over 1.0>> Just wondering where you are getting this from? This is not at all what I found during my conversations with the company and analysts (including your "Wall Street professionals"). Interesting take, but I think you are misinformed and focusing entirely too much on the short term. As I ended my article, it takes a "patient" investor, not an anxious one. Just taking my cues from Buffett, Fisher, and others with more experience than me. Good Investing, Michael Burry