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

To: DENNIS DOCKERY who wrote (60)	7/23/1998 9:24:00 PM
From: Jim Mac	Respond to of 136

Wow, trading now at 4 times forward earnings, if PHP makes $1.00. Kluge has taken about 2M out of float, and PHP maybe 2M by now, for a 73% reduction in float, from 5.5M to 1.5M. Right before great earnings reported. PHYC's announcement today probably referred to FPAM, which has big problems now, unlike PHP, which has NO operating problems. Add to that the general market selloff, and VOILA! PPH unbelieveably scoopable. Scoopin' another 7,700 shares tommorrow at $4 1/8. PHP supposedly sez they'll meet estimates, which may mean they'll meet them at a MINIMUM, then exceed them. Depending on how you interpret that. I'm betting on $0.20 EPS before noncash deemed div. Only 20% of remaining preferred can convert per month while highest daily low of PPH during conversion month is at or below $25, and only about 1/2 of original preferred are still out there, since PHP bought back at least 25,300 of 70,000 by now. No problem.

To: DENNIS DOCKERY who wrote (60)	7/23/1998 9:39:00 PM
From: Jim Mac	Read Replies (1) \| Respond to of 136

Any remaining preferred can convert only 20% per month while highest daily low of PPH is at or below $25 during conversion month. PHP has bought back at least 25,300 of the original 70,000 preferred, so maybe about 1/2 remain if PHP hasn't bought those back yet. This means that, as PPH rises to fair value of $15 - $20 as earnings released, preferred will likely convert at increasingly higher prices, adding only a couple million shares to common, net, after subtracting the 3M common shares PHP should have retired by now, or will have by earnings release next Wednesday. That means virtually NO dilution.