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Microcap & Penny Stocks : Universal Medical Sytems (UMSI) -- Ignore unavailable to you. Want to Upgrade?

To: JPS who wrote (779)	1/1/1998 9:30:00 PM
From: HG	Respond to of 1672

JPS, IMO there are many reasons why this company could be cash poor. High administrative Payroll, not enough revenue, poor collections on accounts recievable, high bad debt ratio to revenue, high cost of doing business, low gross on the business they booked, high cost of goods sold, inventory imbalance, and in general a high operating ratio to sales. These are just a few of the reasons that UMSI could be cash poor. It would appear, and the operative word is appear that these people were more interested in seeing that their own pockets were full when they should have been concentrating on filling the company coffers for everyone. That's why the financials were so important. We needed to see what the problems are/were so we could analyze this investment. We have enough expertise on this thread to analyze their P&l and balance sheet quickly. Our problem, obiously is that they never gave us a chance. I still maintain that was done with purpose because they did not want their mismanagement out where everyone could see it first hand. Regards, HG P.S. Happy New Year Everyone. There are better days ahead.

To: JPS who wrote (779)	1/2/1998 12:27:00 AM
From: GeneM	Respond to of 1672

JPS: I would imagine from the price paid for the shs. that it was a Reg S. buy. Just how much of that went to the company is questionable. Also, from the location of their operation, and all that I saw, that much wouldn't last 2 months. GeneM

To: JPS who wrote (779)	1/2/1998 3:52:00 AM
From: Skaar	Read Replies (1) \| Respond to of 1672

HI JPS: Most of these cases of class action shareholder litigation involve a pattern of fairly serious misrepresentations. The cases are so uniquely fact dependant that it is hard to make general statements about them. There is a fairly liberal standard for information that is actually released by a company. Basically, if there is a grain of truth to it, and it is not grossly misleading, it is OK. Releasing 100% false information amounts to fraud and of course is actionable by those shareholders who were damaged by it. I think where most of these companies get into trouble is where they withhold information that would have honestly impacted a shareholdes decisions regarding whether they should continue to hold the stock or not. Even fairly well run companies run into this pitfall from time to time. Skaar