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: Raptor who wrote (1183)	2/27/1998 11:55:00 PM
From: Pancho Villa	Read Replies (1) \| Respond to of 2068

To All: Don't even know how the stock closed but IMO this stock is now a sell. IMO the story has deteriorated, more bad news coming before good news. The turnaround id farther than I thought. Seems to be a case similar to COL. Pancho

To: Raptor who wrote (1183)	2/28/1998 6:37:00 AM
From: Tony van Werkhooven	Read Replies (1) \| Respond to of 2068

Raptor- You commented on the proposed 350Million debt and indicated that you were not sure how it would be viewed by the regulators. The regulators are primarily focussed on the individual insurance and hmo legal entities. If any of these individual entities needed capital, then funds raised by the parent in the form of additional debt or preferred stock could be downstreamed as a capital contribution. In the case of the insurance subs, a surplus note could also be used (and I won't expand further), but would have a similar effect. Future earnings of the insurance and hmo subs could be dividended up for corporate needs, including debt service. Such dividends are subj. to regulation. I share your concern that the First Call numbers for first Q in particular are not achievable, as I noted in prior posts. One additional thought is however that much of that (i.e. first Q) is probably already in the price. The focus will be on how quickly a new team fixes the admin problems , repairs relationships, drops unprofitable business, and fixes inadequate rates. Right now, I would anticipate that repairs will be made over 1998. Payson will move as quickly and aggressively as possible. The end result is a lean and mean earnings machine of which we will start to really see the full effects in 1999. Except for possible short term market reaction for first Q worse than 1st call numbers (and to a large extent investors will look over that valley), I would not be short. But that is only my opinion, for what it is worth. In short, this is fixable by rolling up the sleeves and letting the management team apply common sense to the problems. I would not bet against Payson.