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

To: Terrapin who wrote (419)	12/9/1997 7:22:00 PM
From: Andreas	Read Replies (1) \| Respond to of 2068

John, I admire your courage. I wish you the best. Frankly, I see another Bre-X, or, as was the case this past week another Molten Metal ("MLTN"). The increased reserves may very well be the beginning. Again, non-disclosure of material facts has occurred. I am rapidly beginning to get to the point where I am convinced that this management is totally inept. These young whippersnappers are beginning to show their true colors. I am also putting feelers out to try and determine whether or not bankruptcy counsel is being or has been sought. I smell a chapter 11. Some of you may find this hard to believe or difficult to digest. But rest assured I smell a rat and it's getting pretty ripe. The drop down to twenties was merely the first volley. Now, we will begin to see just how bad it will get. As to my earlier point concerning insurance, it appears I have struck a cord. It appears that Oxford may not have the insurance coverage to deal with the massive liabilities which, in all probability, will be realized as a result of class action litigation. Also, in speaking with a colleague of mine, it appears that additional class actions are forthcoming which will extend the class to include shareholders who bought through December of 1997! Why? Due to continual non-disclosure by Oxford of material and relevant facts. This can only result in a bankruptcy filing as salespersons find it virtually impossible to sign up new businesses. And please remember this. This company has no proprietary asset. The competition can easily step into its shoes and pick up the accounts lost and no-one will miss a heart beat. Oxford is not like a Ford or GM with massive tanagible assets which provide a valuation floor. The book value of Oxford will diminish tremendously as the liabilities are tallied and ultimately disclosed. It's value is in its insurance contracts. As those contracts evaporate so does Oxford.

To: Terrapin who wrote (419)	12/9/1997 7:28:00 PM
From: Thomas Haegin	Respond to of 2068

Re: Investment rational I personally have the biggest rub now with management credibility. I thought they were good, even brilliant maybe, but in fact they made bad mistakes. On a forward basis I'm especially concerned with two things: The IT system: Who for Christ sake is in their IT dept.? How can it be that their bookkeeping gets so f/&%ed up in the first place? They probably should slash and burn the whole thing and ask a competitor for a license of their software or let EDS solve the problem. This falls also back to management not doing enough Financial Controlling. The second thing: Medicare is a real problem now and they must do something about it. However, based on recent management weakness, I have little confidence in them that the will or even can execute. I rather fear for another charge there, too, somewhen... With the other stuff you cite, I agree that these are mostly one time items and discounted already (the news and suits). Going forward, they need to retain present members and get some enrollment growth. I'd be content even with little enrollment growth (a few 100K). But most of all they must look inhouse and get these sleepy butts kicked. The best solution may be an outsider stepping in as COO. I'm mad!! Thomas Thomas

To: Terrapin who wrote (419)	12/9/1997 7:56:00 PM
From: Michael Burry	Read Replies (1) \| Respond to of 2068

<<It is also my belief that almost all fast growing companies hit a major stumble at a critical mass. This is no small mistake but is it a back-breaker?>> Have you ever read the book Super Stocks by Ken Fisher? The whole strategy is founded on this very principle. You might be interested. Early, I outlined a scenario where the company could take a $200 million hit and survive. This announcement is bad, and I'm sure the market will hit it, although this news is already reflected in the price. I agree with you. We may see lower levels - a risk for the trader/short-term holder only, and an opportunity for long-term holders. Good Investing, Mike