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Author: 2BAFOOL4LIFE Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 66  
Subject: Re: Dynacq - DYII Date: 9/30/2003 12:53 AM
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DYII has performed well as a company in the past and has been ranked by Fortune (i think 2x) in top-10 growth. But the stock remains relatively cheap because the comapny has had quite a few lagal troubles and seemingly controversial dealings with physicians and, even shareholders (one shareholder suit for mis-representation by management was recently dropped...). The recent tumbling in price was triggered by an article in Barrons that suggested the company's revenue source, workers' comp, was about to take a hit from legislation change. The insurance companies that pay for some of the procedures at the hospitals are also tightening their wallets.

Although the company issued a statement saying worker's comp cases accounted for less than 50% of their operations, it did not issue guidance on how the change will affect them or refute the points put forward by the article. Anyway, I did not buy their response so I stayed away although the price did look tempting...

Before you buy this stock, I suggest you find a copy of that article to read... you can probably find it on the yahoo boards if you search hard enough... the projected revenue hit is significant and management isn't the most shareholder friendly
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