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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: James Clarke who wrote (6627)	4/8/1999 1:29:00 AM
From: jeffbas	Respond to of 78531

The other key in health company investing is the exposure to government reimbursement issues on a material part of revenue, ESPECIALLY on companies where margins are thin to start with (like HMO's, for example). Those companies' earnings are really leveraged to government policy and rule changes for political, stupid or other agenda reasons -- which I regard as a particularly poor business model.

To: James Clarke who wrote (6627)	4/8/1999 2:15:00 AM
From: peter michaelson	Respond to of 78531

Jim: In that regard, I'd be interested in your take on SONO. Not a "value stock", but possibly a stock of great value. Handheld ultrasound, well-protected I think from competition. No hype. Solid management. Good backing. Has been producing prototypes for the military. Getting close to going to retail market with the product. One in every doctor's office/ambulance concept... good for customer relations...you know, pregnant women worry a lot. Excellent diagnostic tool. #Subject-20089 Great Hammacher Schlemmer offering too! The antithesis, I think, of Quick product cycles and minimal barriers to entry. Should have mentioned it earlier at 1/2 the price - has risen a bunch recently. Spun off at $12 in April, reached $5 in September, $18 today. Peter

To: James Clarke who wrote (6627)	4/8/1999 8:59:00 AM
From: Freedom Fighter	Read Replies (1) \| Respond to of 78531

James, >>Wayne, health care is one of the industries I just try to avoid because I know zippo about the products. But from an industry structure standpoint, every medical device company I ever looked at looked like an accident waiting to happen. And many of those accidents did happen a year or so later.<< That's my feeling also. The difference here is that BBC is the distributor and not the manufacturer. So I'm not sure there's as much risk. If one product falls by the wayside, they just distribute the new item. Same with the drugs they distribute. I will continue to investigate though. Wayne