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Biotech / Medical : AHTC Corp (AHTC)-formerly Advanced Health (ADVH) -- Ignore unavailable to you. Want to Upgrade?


To: Van Nguyen who wrote (263)7/3/1998 7:37:00 AM
From: Tom D  Read Replies (2) | Respond to of 371
 
How could doing one's homework have prevented this?

What homework could possibly have revealed the problems?

A) Calling ADVH clients--who are busy physicians, who are probably very reluctant to tell strangers that they will not renew management contracts unless ADVH gives a lot when it comes time to renegotiate?

B) Calling the accounting watchdog agency which most of us have never heard of before? Call them when Arthur Anderson (I think thats who it is) gives them a clean bill of health on 12/31/97. Call them when H&Q puts out a strong buy on January 5, 1998?

ADVH was a time bomb waiting to explode. The only hints were one analysts comment about earnings quality in October (which were ignored by all the other analysts) and the price action and short interest, which was thought attributable to the sector weakness.

Best Regards,
Tom D