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The 6 month chart looks very much like other Mr.Market stock. The stock has climbed from $0.15 cents in March after the accounting scandal panic broke out and it started trading in pinksheets to $3.00 today.
As many may know, that healthsouth was plagued in an accounting scandal with a number of outstanding litigations.
But the company since March has hired a crisis management company and has managed to turnaround and cooperate with federal agencies.
The monthly free cash flow is about $28 million and the company is on target to make $650/700 million EBIDTA Ffor 2003. My calculated guess the company has about 700 million cash at it's disposal. But also the company has not made bond payments towards principal that were due this year. The company in a very positive move paid all outstanding interest due a month back.
The company right now is almost completing a bond exchange deal. If that happens(which I think in the nex 2 weeks) the stock will climb back to it's proper valuation of $7.
Another possibility is the company making bond payments by cash and getting the LOC restored from the banks.
Pl post your opinions.
As many may know, that healthsouth was plagued in an accounting scandal with a number of outstanding litigations.
But the company since March has hired a crisis management company and has managed to turnaround and cooperate with federal agencies.
The monthly free cash flow is about $28 million and the company is on target to make $650/700 million EBIDTA Ffor 2003. My calculated guess the company has about 700 million cash at it's disposal. But also the company has not made bond payments towards principal that were due this year. The company in a very positive move paid all outstanding interest due a month back.
The company right now is almost completing a bond exchange deal. If that happens(which I think in the nex 2 weeks) the stock will climb back to it's proper valuation of $7.
Another possibility is the company making bond payments by cash and getting the LOC restored from the banks.
Pl post your opinions.
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