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

To: DRRISK who wrote (1018)	2/11/1998 10:03:00 AM
From: Premier	Respond to of 2068

Dr Risk: Market has voted in your favor. Additional financing is generally negative. Debt: Increases risk due to increase in leverage. Stockholders eventually benefit if Co. makes more than interest rate and loose big time if Co. makes less than interest rate. Equity: Market perception is that Management issues equity if it thinks stock is overvalued. Convertible: Buyer accepts lower return in the hope of converting to equity if Co. does well. Seller (existing stockholders!) incurs lower cost of capital at issuance but gets less benefit if Co. does well. IMHO, Oxford was beaten down because of risk of bankruptcy. The new financing and probable restructuring is making the market to believe that it will not go belly up. That is why its positive. Premier