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Biotech / Medical : The Stock for 1999(Polymedica)PLMD(Medical Supply Co.) -- Ignore unavailable to you. Want to Upgrade?

To: Arthur Radley who wrote (1450)	7/21/1998 7:33:00 AM
From: Sam	Respond to of 3414

They also PREPAID $1,800,000 worth of expenses. When you start putting these items together against so few shares of stock you begin to see annualized numbers that begin to look fantastic! All this and much more conservative amortization schedule of advertising expenses! Now for the good news! Sam

To: Arthur Radley who wrote (1450)	7/21/1998 7:42:00 AM
From: _DB	Respond to of 3414

It's a new day so I can post again, thanks Dennis for bringing my post over from yahoo last night. I guess we agree that the 10-Q looks pretty good, but as I stated before, the timing is very curious. The balance sheet improved very nicely from the 3/31/98 report, and is consistent with what management had stated after the first quarter report (that we would see improvement in A/R). I really hope the increase in the A/R reserve is just a cushion, I would hate it if they had to write-off 24% of their receivables. Some other points: The company will now be taxed at the highest level (40%) going forward, as they were this quarter. Research and development expenses will likely be immaterial going forward, unless they make an acquisition of a company that requires some. In addition to the $1.5 million increase in bad debt reserves, they also had $1.0 in sales allowances this quarter. Again, the question is whether they are just being conservative and setting up payables (reserves) or whether these reserves for rebates or returns are needed. With every $100,000 of net income (after tax) approximately equaling $0.1 per share, it is easy to see how earnings can be "caressed". I have firsthand knowledge of what some companies do, and if it was my company, I would probably want to have a decent amount of reserves in case I ever needed them. I better get going to work now, will check in later. Hoping like most out here that our patience will finally start to payoff, with today adding to yesterdays movement. Good luck to all.