Zachary Scheidt

Obama’s Budget and Healthcare Stocks Mix Like Oil and Water

468559 - I wonder if you will share this feeling when there is significantly less drug discovery, poor physical therapy, and hospitals that offer sub-standard care. This is what happens when there is no profit potential in ANY economically sensitive industry.

If there is no chance at making a good living in medicine, students will not altruistically pursue the profession en mass, and over time the technology and advancements which have made care standards so much better over the last 10 years will simply disappear.

You NEED to have a safety net for those who cannot afford care. I embrace that and totally agree with that. But taking an entire industry and making it subject to a socialist agenda in the name of helping a few who are not currently covered will simply bring down care for EVERYONE - it will not improve care over time.

Why not develop a more comprehensive program for those who truly cannot afford health coverage, and let those who can continue to operate in a free market environment?

zachstocks.com

Obama’s Budget and Healthcare Stocks Mix Like Oil and Water

zhybrid - This certainly looks like an interesting situation. But there could be two main problems.

The first is cash burn. If a company is trading for less than cash and has no debt, but is burning through that cash without turning a profit, it makes sense for shareholders to pay less than cash for the company (unless you have enough influence to buy out the entire company and then force them into liquidation)

The second issue is logistical investing. There is simply no way you could make a significant investment in this stock without moving the price. With only 167,000 shares trading a day at under a buck, no institutional manager really has a chance with this name. You could make the argument that a few small individual investors could put some money into it, but the risk from illiquidity trumps return in my opinion.

Best of luck - I hope it turns out very well. But it's not a situation I can justify being involved in.

Zach
zachstocks.com