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Biotech / Medical : PHP Healthcare -- Ignore unavailable to you. Want to Upgrade?

To: Ontherise who wrote (48)	6/10/1998 11:07:00 PM
From: Jim Mac	Respond to of 136

Since Preferred holders can convert only 20% per month while that month's highest daily low is at or below $25, and PHP's earnings will be so good this year, it seems reasonable to assume that virtually no one will stall on conversions, and we'll see 60% - 70% of Preferred converted by end of August, depending on whether PPH is above $25 in the next 3 months (as highest daily low rises above $25, then Preferred can convert more that month, sliding up a scale with conversion rights eventually at 100% if highest daily low that month is above $37). I think once earnings are released (soon?), PPH will be at $15 - $20 in no time, back where it was before the big, scary Smith Barney downgrade to "neutral", and the big, scary, earth-shaking Wall Street Journal comment thereafter. Smith Barney has been like a yo-yo on PPH : "neutral" - "buy" - "neutral". And very soon: "buy".

To: Ontherise who wrote (48)	6/11/1998 5:11:00 PM
From: Jim Mac	Respond to of 136

After PHP's recent 25,200 share Preferred buyback and early conversions, there are less than 45,000 Preferred shares left now, which, if converted around $15 - $25 (likely common trading range over next few months after earnings released soon), would result in about 3M common conversions. Subtract the 1.6M common PHP has taken off the market, and only about 1.5M net common will be added upon conversion throughout the year. Conversion rules stipulated that if conversion was at about $35 - $37, Preferred could convert 100% in a given month, adding about 2M common if entire 70,000 converted. Thus, 2M common added from conversion was PHP's highest acceptable limit, since they were willing to let 100% convert at once at that price/share level. At roughly 1.5M likely net common added thru future conversions, we're below that limit now. Mission accomplished.

To: Ontherise who wrote (48)	6/21/1998 7:10:00 PM
From: Jim Mac	Respond to of 136

I see Kluge has been a big investor in PPH for a long time, and you remember PHP signed a stock purchase agreement with Kluge et al on same day as repurchase announcement. Between Kluge and PHP, 3M+ common have been removed from market, and float is down to 3.5M pre-conversion shares, from 5.5M. I guess PHP continues to scoop common, since Kluge repurchased 1/2 of "buyback" for PHP, for ultimate transfer to PHP/Preferred holders? At these prices, and considering the fine/dilution/SEC accounting issues have been essentially resolved, Smith Barney's got to upgrade to "strong buy" soon, and especially after earnings released this month or next. PPH will be at $16 in no time, and be bumping up against $25 by Fall (25 times FY99/CY98 EPS $1.00+, 33 times trailing EPS of $0.75 as of July Q). I'm scoopin' like a crafty bandit.