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: Michael Burry who wrote (661)	12/26/1997 10:34:00 AM
From: Premier	Read Replies (2) \| Respond to of 2068

Mike: Any bank will gladly lend oxhp short term working capital loan. You have correctly pointed out, in past, the low margin of safety in balance sheet. I also suggest that the company is operating at low gross margin in income statement and is part of a sick industry. The low margin acts as double edged sword. Assuming no growth 10% premium increase on 4Billion translates into 400MM in additional revenues and with cost containment(Wiggins taking a cut in salary!<g>) that should go down to the bottom line profit. $400MM equals $5 per share. Such an improvement in income statement will give tremedous lift to margin of safety in the balance sheet. IMHO, consumer will absorb such premium increase painlessly. Steve: I spoke to a client who is Oxford customer and provider. He appeared to be satisfied from both sides. IMHO, Oxford is a speculative buy. I am long OXHP.