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To: Paul Senior who wrote (62432)	9/5/2019 8:35:43 AM
From: Graham Osborn	Respond to of 78670

CNC is really a stroll down memory lane. This company was a beautiful organic growth story - you could call them the GEICO of low-income health plans - up until about 2015. Since then as you say their growth has been driven more by acquisitions and accompanying leverage. Certainly I think they deserve a much lower multiple now than they did 5 years ago. The debt could be a problem - even the interest coverage ratios are getting a bit narrower than I'd like. I guess it's the usual Cinderella story. Unrelated: Seems like Mike Burry is suddenly in the news a lot more after 10 years in the wilderness. This yesterday on Yahoo Finance: finance.yahoo.com

To: Paul Senior who wrote (62432)	9/5/2019 8:55:09 AM
From: Graham Osborn	Respond to of 78670

Speaking of memory lane: Re: ELAMF A fellow microcapper brought this to my attention recently. Looks like it currently sells for 3-5X the earnings of the candy subsidiary if you believe the numbers. Anyway, the name sounded familiar so I went back searching for it. Turns out this was a stock you, Mike, and others were discussing all the way back in 1998: Subject 16175 The company has had an interesting history since then. But the company was selling for <1X earnings less than a year ago. Once of the bigger misses of my short career. I don't own this by the way. Might in the future but only just learned of it.