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.

Microcap & Penny Stocks : Coram (CRH)--has the turnaround begun -- Ignore unavailable to you. Want to Upgrade?

To: leigh aulper who wrote (16)	4/24/1998 12:17:00 AM
From: Lou Little	Respond to of 85

When is a win not a win? When you're so anxious to gain volume you price at the margin. United Healthcare is notorious for playing hardball when negotiating prices. Having been in the home infusion business for 7 years prior to moving to more service based home health, I know what pricing United was able to negotiate in the past and it was not profitable. Managed care companies caused an implosion of consolidation (poor wording, but it's late) in this homecare sector. They literally priced many companies into merging as their only survival strategy. I have yet to see a truly profitable infusion business that has any real size to it since. And Coram's attempts to continue to merge with somebody, anybody (Lincare, Apria) almost seem to be calculated to keep us from seeing the true long term quality of their core business. I wouldn't count on this one until it is able to establish a track record of earnings from ongoing operations and a positive cash flow without settlements or due to a temporary fluctuation in A/R. Wish I could be more positive (they really do provide high quality care - but can they make money doing it?).