From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #2045 Reply-To: canslim Sender: owner-canslim-digest@lists.xmission.com Errors-To: owner-canslim-digest@lists.xmission.com Precedence: bulk Content-Transfer-Encoding: quoted-printable X-No-Archive: yes canslim-digest Wednesday, January 16 2002 Volume 02 : Number 2045 In this issue: Re: [CANSLIM] Date: Wed, 16 Jan 2002 22:04:50 +0100 Re: [CANSLIM] Date: Wed, 16 Jan 2002 22:04:50 +0100 Re: [CANSLIM] Date: Wed, 16 Jan 2002 22:04:50 +0100 ---------------------------------------------------------------------- Date: Wed, 16 Jan 2002 14:58:33 -0800 (PST) From: Eric Jaenike Subject: Re: [CANSLIM] Date: Wed, 16 Jan 2002 22:04:50 +0100 - --0-1702287815-1011221913=:85175 Content-Type: text/plain; charset=us-ascii Big article today by Herb Greenberg at Realmoney.com on DYII. Company specific. HUGE red flags on these guys. Realmoney.com is a subscription service with excellent info (I am a subscriber). You can get a free 10 day trial there if you want to check out the sight (or just the story on DYII). Eric Andreas Himmelreich wrote: Pretty strange what is happening with DYII. Stock has good fundamentals, yet its down 30%? Industry Group kind of OK as well, even winning Relative Strength. Strange. - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. - --------------------------------- Do You Yahoo!? Send FREE video emails in Yahoo! Mail. - --0-1702287815-1011221913=:85175 Content-Type: text/html; charset=us-ascii

Big article today by Herb Greenberg at Realmoney.com on DYII. Company specific. HUGE red flags on these guys. Realmoney.com is a subscription service with excellent info (I am a subscriber). You can get a free 10 day trial there if you want to check out the sight (or just the story on DYII).

Eric

  Andreas Himmelreich <judgejimmy@web.de> wrote:

Pretty strange what is happening with DYII.

Stock has good fundamentals, yet its down 30%? Industry Group kind of OK as well, even winning Relative Strength.

Strange.

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-To subscribe/unsubscribe, email "majordomo@xmission.com"
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Do You Yahoo!?
Send FREE video emails in Yahoo! Mail. - --0-1702287815-1011221913=:85175-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Wed, 16 Jan 2002 17:04:02 -0600 From: "Katherine Malm" Subject: Re: [CANSLIM] Date: Wed, 16 Jan 2002 22:04:50 +0100 This is a multi-part message in MIME format. - ------=_NextPart_000_00B4_01C19EAF.CC4F50A0 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Here's the company's official rebuttal to Herb's article: Answers to questions raised during investors phone conference held on = 1/15/02 regarding Form 10Q ended 11/30/2001 Question regarding reserve for bad debt ? Net revenue reported as upper line revenue is already net of reserve for = uncollectibles from third party payers or contractual adjustments in = compliance with the AICPA healthcare industry guideline. Accounts = receivable reported on the consolidated balance sheets is also net of = reserve for uncollectibles or contractual adjustments. Therefore, the = reserve for uncollectibles or contractual adjustments is not reported as = a separate line item like other non-healthcare industries does, but = instead it is subtracted from both the gross revenue and gross accounts = receivable to arrive at net revenue and net accounts receivable, = respectively. However, the reserve for uncollectibles from patients is = reported as a separarate line item in the consolidated statements of = operations as "Provision for uncollectible accounts". Questions regarding comparison of net revenue and net income between = first quarter ended 11/30/01 to fourth quarter ended 8/31/01 ? Net revenue of $13.8 million in first quarter ended 11/30/01 increased = by $1 million or 8% from the fourth quarter ended 8/31/01. Net income of $3.4 million in first quarter ended 11/30/01 decreased by = $0.1 million or 3% from the fourth quarter ended 8/31/01 primarily due = to year end audit adjustments that were booked to the fourth quarter = ended 8/31/01. One of the most significant adjustments was reduction in = "Provision for income taxes expense" due to tax saving benefits of = exercised non-qualified stock options. Had it not been for the income = taxes saving benefits, "Provision for income taxes expense" would have = been $1.5 million instead of $1.1 million in the fourth quarter ended = 8/31/01, and net income would have been reduced by $0.4 million to 3.1 = million and when compare to net income of $3.4 million in the first = quarter ended 11/30/01, net income for the first quarter ended 11/30/01 = had an increase of $0.3million or 10% from that of the fourth quarter = ended 8/31/01. Question regarding the reporting of the $240,000 being paid to Halcyon = to acquire 20% of its minority interests ?=20 The payment of $240,000 was included in the $590,000 paid to related = party in the consolidated statement of cash flow. Question regarding why the Company can bought back 20 % minority = interests in the Hospital from Halcyon for only $240,000 ? It is in accordance with the buy back agreement provision to buy back at = the book value.=20 ----- Original Message -----=20 From: Eric Jaenike=20 To: canslim@lists.xmission.com=20 Sent: Wednesday, January 16, 2002 4:58 PM Subject: Re: [CANSLIM] Date: Wed, 16 Jan 2002 22:04:50 +0100 Big article today by Herb Greenberg at Realmoney.com on DYII. Company = specific. HUGE red flags on these guys. Realmoney.com is a subscription = service with excellent info (I am a subscriber). You can get a free 10 = day trial there if you want to check out the sight (or just the story on = DYII).=20 Eric=20 Andreas Himmelreich wrote:=20 Pretty strange what is happening with DYII. Stock has good fundamentals, yet its down 30%? Industry Group kind = of OK as well, even winning Relative Strength. Strange. - -To subscribe/unsubscribe, email "majordomo@xmission.com" -In the email body, write "subscribe canslim" or -"unsubscribe canslim". Do not use quotes in your email. - -------------------------------------------------------------------------= - ----- Do You Yahoo!? Send FREE video emails in Yahoo! Mail. - ------=_NextPart_000_00B4_01C19EAF.CC4F50A0 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
Here's the company's official rebuttal to Herb's article:
 
Answers to questions raised during investors phone conference held = on=20 1/15/02 = regarding Form 10Q=20 ended 11/30/2001

Question regarding reserve for bad debt=20 ?

Net revenue reported as upper line revenue is = already net of=20 reserve for uncollectibles from third party = payers or=20 contractual adjustments in compliance with the AICPA healthcare industry = guideline.  Accounts = receivable=20 reported on the consolidated balance sheets is also net of reserve for = uncollectibles or contractual adjustments.  Therefore, the reserve for = uncollectibles or contractual adjustments is not = reported as=20 a separate line item like other non-healthcare industries does, but = instead it=20 is subtracted from both the gross revenue and gross accounts receivable = to=20 arrive at net revenue and net accounts receivable, respectively.  However, the reserve for uncollectibles from patients is reported as a = separarate line item in the consolidated = statements of=20 operations as “Provision for uncollectible accounts”.

Questions regarding comparison of net revenue and = net income=20 between first quarter ended 11/30/01 to fourth quarter ended 8/31/01=20 ?

Net revenue of $13.8 million in first quarter ended = 11/30/01 increased by = $1 million or=20 8% from the fourth quarter ended 8/31/01.

Net income of $3.4 million in first quarter ended = 11/30/01 decreased by = $0.1 million or=20 3% from the fourth quarter ended 8/31/01 primarily due to year end audit = adjustments that=20 were booked to the fourth quarter ended 8/31/01.  = One=20 of the most significant adjustments was reduction in “Provision = for income taxes=20 expense” due to tax saving benefits of exercised non-qualified = stock=20 options.  Had it not been = for the=20 income taxes saving benefits, “Provision for income taxes = expense” would have=20 been $1.5 million instead of $1.1 million in the fourth quarter ended = 8/31/01,=20 and net income would have been reduced by $0.4 million to 3.1 million = and when=20 compare to net income of $3.4 million in the first quarter ended = 11/30/01, net=20 income for the first quarter ended 11/30/01 had an increase of = $0.3million or=20 10% from that of the fourth quarter ended 8/31/01.

Question regarding the reporting of the $240,000 = being paid=20 to Halcyon to acquire 20% of its minority interests = ?=20

The payment of $240,000 was included in the = $590,000 paid to=20 related party in the consolidated statement of cash flow.

Question regarding why the Company can bought back = 20 %=20 minority interests in the Hospital from Halcyon for only $240,000 ?

It is in accordance with the buy back agreement = provision to=20 buy back at the book value.

----- Original Message -----
From:=20 Eric=20 Jaenike
Sent: Wednesday, January 16, = 2002 4:58=20 PM
Subject: Re: [CANSLIM] Date: = Wed, 16 Jan=20 2002 22:04:50 +0100

Big article today by Herb Greenberg at Realmoney.com on DYII. = Company=20 specific. HUGE red flags on these guys. Realmoney.com is a = subscription=20 service with excellent info (I am a subscriber). You can get a free 10 = day=20 trial there if you want to check out the sight (or just the story on = DYII).=20

Eric=20

  Andreas Himmelreich <judgejimmy@web.de> = wrote:=20 Pretty=20 strange what is happening with DYII.

Stock has good = fundamentals, yet=20 its down 30%? Industry Group kind of OK as well, even winning = Relative=20 Strength.

Strange.

-
-To subscribe/unsubscribe, = email=20 "majordomo@xmission.com"
-In the email body, write "subscribe = canslim"=20 or
-"unsubscribe canslim". Do not use quotes in your = email.


Do You Yahoo!?
Send FREE video=20 emails in Yahoo!=20 Mail. - ------=_NextPart_000_00B4_01C19EAF.CC4F50A0-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Wed, 16 Jan 2002 15:11:56 -0800 From: Joe Maguire Subject: Re: [CANSLIM] Date: Wed, 16 Jan 2002 22:04:50 +0100 - --------------2945CD134A8A70A3A9CA57C9 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit Katherine... O boy what interview with non- ceo/cfo,s onDYII Maybe they were short. Classic. Thx for info. Best Joe M Katherine Malm wrote: > [Image] > > Herb on TheStreet > Dynacq's Doubtful Accounts Send Distress Signals > By Herb Greenberg > Senior Columnist > > 01/16/2002 02:46 PM EST > URL: > http://www.thestreet.com/p/rmoney/herbonthestreet-rm/10006859.html > > When it comes to red flags, so many are flying over Dynacq > International (DYII:Nasdaq - news - commentary) that it's hard to > count. Dynacq owns and manages an acute care hospital in Pasadena, > Texas, where it manages three physician practices. It also operates > two outpatient surgical facilities and a medical office complex. > The only analyst covering the company, Gary Weber of Taglich Brothers, > rates it a buy. That Dynacq pays Taglich for that coverage is reason > enough to warrant caution: The disclosure is right there in the fine > print of the analyst's report. > But in recent quarters there have been numerous other issues that, by > themselves, would warrant a mention here. For example, Dynacq's > allowance for doubtful accounts -- something every CFO should know > like the back of his or her hand -- has been hovering around the 1% > range, which is far below the level used by such rivals as HCA > (HCA:NYSE - news - commentary) , Tenet (THC:NYSE - news - commentary) > and Universal (UHS:NYSE - news - commentary) . Yet when asked about > the amount of the allowance on the company's bizarre conference call > Tuesday, CFO Philip Chan couldn't answer the question. > The dialogue is worth the price of admission. > > Caller: Could you give us where allowance for doubtful > accounts stands right now, please? > CFO: Are you asking the provision for uncollectable accounts > of $41,673 on the income statement? Or are you talking > about... > Caller: I'm talking about the reserve -- the allowance for > doubtful accounts that would be against your gross > receivables so that you have -- you report net accounts > receivable. What is your allowance for doubtful accounts? > What's your reserve that's been built up over time? > CFO: The way we present our [unintelligible] and net revenue > and that is the gross revenue minus, I believe, what you are > talking about the reserve for uncollectible portion from > insurance company or third party. > Caller: Uh, either one. Let me, maybe if I can contrast it > where it was in the 10-K. ... Anyway, it's a standard > nomenclature. It's called allowance for doubtful accounts. > ... It was $193,000 in August. Do you know what it is now, > please? > CFO: Let me turn my page on the same page that you are > saying ... a minute. > Caller: All right, let me -- maybe I can go on while he's > searching that. If I could ask another question here... > > And so it was! The entire call was pretty much like that. > Take the same caller's question about the company's revenue per > hospital bed, which appears to be much higher than the average for the > acute care hospital industry. > > Caller: You have 37 beds and in the hospital you had > revenues in here of just under $9 million, and that equates > somewhere to about a quarter-million dollars revenue per > bed. That is substantially higher than industry averages. > Why is that? > CEO Chiu Chan (who, according to the 10-K is not related to > the CFO): We are not general acute hospital. We are surgical > hospital. > > Not an acute care hospital?! The company itself says in its 10-K, > filed Nov. 27, that it is engaged in "the ownership and management of > an acute care hospital." > The caller continues, saying that revenue at Dynacq's clinic and > outpatient surgical center, which had been a key driver of Dynacq's > growth, was "down about 7% year over year. At the same time, the > hospital revenues just skyrocketed here. They were up 160% or > something." > > CEO Chan: Well, as you can see, we are aligning our company > towards -- we are now saying that Dynacq is a surgical > hospital company. We are a surgical hospital company. That > is the direction which we are going. So, right now all the > focus is, the management focus is a surgical hospital > company. > > Chan later added: "The reason why we are trying to do this is because > we listen to a lot of the research analysts or those brokers about a > single focus company enhance our shareholder value a lot better than > getting more -- all this kind of other business. ... So, the other > thing which is not surgical hospital business is going to go gradually > -- scale down." > But last March Dynacq purchased a second ambulatory or outpatient > surgery center. Now it's saying that that part of the business will no > longer be a focus?! > The conference call continued. A different caller noted that the > company had "very impressive" 12% revenue growth in the fourth quarter > from the third quarter. "But it appears net income may have declined > slightly quarter to quarter. Is that the case?" > > CEO: Net income? No. I don't think so. Net income actually > go up. > Caller No. 2: I backed out that the fourth quarter net > income was about $3,490,000. ... I have this quarter at > about $3,378,000. So, maybe a 3% or so decline in net > income, and you had 12% sequential revenue growth. I'm just > curious where... > > The CEO then started talking about how earnings per share of 23 cents > were higher than the prior quarter's 22 cents, then the CFO injected: > > CFO: Your math ... could be very well correct. The thing > that may confuse a little bit during the fourth quarter is > where we have the annual audit come in and make all the > adjustments. There's no significant adjustment that we made. > You may be able to look at the income tax provision for the > fourth quarter, which kind of declined pretty significantly > from the periods before. That is the time that the auditor > come in and look our annual income tax situation. > Caller No. 2: OK ... the real question I'm driving at ... it > appears that your profit margins came down quite a bit from > quarter to quarter [net profit margin was down nearly 4 > percentage points from the fourth quarter to the first > quarter] ... and I'm just wondering if you could comment a > little bit on why the profit margins ... contracted, and > again, is this something we should expect going forward? > CEO: If you look at the number for the whole fiscal year > last year, our profit margin is ... 25.3. Therefore our net > margin is 24.7 or 24.6. So we are talking about a decimal > point percentage difference, and I don't think it's > something of anybody's concern. > > Year over year, maybe, but quarter to quarter it's nearly 4 percentage > points. That's certainly somebody's concern. But I digress, as the > call returned to the subject of the allowance for doubtful accounts. > > Caller No. 1: I wondered if you'd had a chance to find that > answer on the allowance for doubtful accounts on accounts > receivable? > CFO: I tried to find out the real question -- all on income > statement, the only provision for uncollectible account is > -- for this quarter is $41,670 ... before talk about > $137,000 -- I don't know what number you have been looking > at. > Caller No. 1: $193,000 is what it was in August. > CFO: In August $193,000? > Caller No. 1: August of '01. > CFO: Hold on. > > He never did answer the question. > Finally, back to the question of paying a brokerage firm to cover the > company, another caller said: > > Caller No. 3: I'm showing Gary Weber of Taglich Brothers is > the only analyst following the company. On the footer of > their report it says his firm was paid by Dynacq to write > it. Are there any other nonaffiliated research reports for > analyst coverage? > CEO: Taglich Brothers, yes, we paid for them for the analyst > report to be written in the beginning. Now, what we are > paying them is a quarterly fee to actually have that report > available at their Web site. So we don't pay them to write > about us anymore, and we do not have any other analysts > following this company yet. > Caller No. 3: How much do you pay them? > CFO: $1,250 a month. > > Isn't that a conflict? Not according to Bob Taglich of Taglich > Brothers. He told me: "They are independent reports. In the micro-cap > market, unless you have potential million-dollar fees coming in, it's > very difficult for a brokerage firm to cover small firms for > research." > Doesn't that mean they're buying an opinion? > "They're not buying an opinion," Taglich says. "We have some stocks > that aren't rated." He adds that there is a weeding-out process on > companies Taglich agrees to cover, and notes that whether it's hard > cash or through investment banking business, companies pay for > coverage "one way or the other ... at least we properly disclose it." > He may have a point there. Not that it's the right thing to do -- > disclosed or otherwise. > ----------------------------------------------------------------------- > Herb Greenberg writes daily for TheStreet.com. In keeping with TSC's > editorial policy, he doesn't own or short individual stocks, though he > owns stock in TheStreet.com. He also doesn't invest in hedge funds or > other private investment partnerships. He welcomes your feedback and > invites you to send any to Herb Greenberg. Greenberg also writes a > monthly column for Fortune. > Brian Harris and Mark Martinez assisted with the reporting of this > column. > ----------------------------------------------------------------------- > > ----- Original Message ----- > From: Andreas Himmelreich > To: 'canslim@lists.xmission.com' > Sent: Wednesday, January 16, 2002 3:00 PM > Subject: [CANSLIM] Date: Wed, 16 Jan 2002 22:04:50 +0100 > Pretty strange what is happening with DYII. > > Stock has good fundamentals, yet its down 30%? Industry > Group kind of OK as well, even winning Relative Strength. > > Strange. > > - > -To subscribe/unsubscribe, email "majordomo@xmission.com" > -In the email body, write "subscribe canslim" or > -"unsubscribe canslim". Do not use quotes in your email. > - --------------2945CD134A8A70A3A9CA57C9 Content-Type: multipart/related; boundary="------------7C0FFF65FE06D1D0B28291B9" - --------------7C0FFF65FE06D1D0B28291B9 Content-Type: text/html; charset=us-ascii Content-Transfer-Encoding: 7bit Katherine... O boy what interview with non- ceo/cfo,s onDYII Maybe they were short. Classic. Thx  for info. Best Joe M

Katherine Malm wrote:

Herb on TheStreet
Dynacq's Doubtful Accounts Send Distress Signals
By Herb Greenberg
Senior Columnist

01/16/2002 02:46 PM EST
URL: http://www.thestreet.com/p/rmoney/herbonthestreet-rm/10006859.html

When it comes to red flags, so many are flying over Dynacq International (DYII:Nasdaq - news - commentary) that it's hard to count. Dynacq owns and manages an acute care hospital in Pasadena, Texas, where it manages three physician practices. It also operates two outpatient surgical facilities and a medical office complex.
The only analyst covering the company, Gary Weber of Taglich Brothers, rates it a buy. That Dynacq pays Taglich for that coverage is reason enough to warrant caution: The disclosure is right there in the fine print of the analyst's report. 
But in recent quarters there have been numerous other issues that, by themselves, would warrant a mention here. For example, Dynacq's allowance for doubtful accounts -- something every CFO should know like the back of his or her hand -- has been hovering around the 1% range, which is far below the level used by such rivals as HCA (HCA:NYSE - news - commentary) , Tenet (THC:NYSE - news - commentary) and Universal (UHS:NYSE - - news - commentary) . Yet when asked about the amount of the allowance on the company's bizarre conference call Tuesday, CFO Philip Chan couldn't answer the question.
The dialogue is worth the price of admission.

Caller: Could you give us where allowance for doubtful accounts stands right now, please?
CFO: Are you asking the provision for uncollectable accounts of $41,673 on the income statement? Or are you talking about...
Caller: I'm talking about the reserve -- the allowance for doubtful accounts that would be against your gross receivables so that you have - -- you report net accounts receivable. What is your allowance for doubtful accounts? What's your reserve that's been built up over time?
CFO: The way we present our [unintelligible] and net revenue and that is the gross revenue minus, I believe, what you are talking about the reserve for uncollectible portion from insurance company or third party.
Caller: Uh, either one. Let me, maybe if I can contrast it where it was in the 10-K. ... Anyway, it's a standard nomenclature. It's called allowance for doubtful accounts. ... It was $193,000 in August. Do you know what it is now, please?
CFO: Let me turn my page on the same page that you are saying ... a minute.
Caller: All right, let me -- maybe I can go on while he's searching that. If I could ask another question here...
And so it was! The entire call was pretty much like that.
Take the same caller's question about the company's revenue per hospital bed, which appears to be much higher than the average for the acute care hospital industry.
Caller: You have 37 beds and in the hospital you had revenues in here of just under $9 million, and that equates somewhere to about a quarter-million dollars revenue per bed. That is substantially higher than industry averages. Why is that?
CEO Chiu Chan (who, according to the 10-K is not related to the CFO): We are not general acute hospital. We are surgical hospital.
Not an acute care hospital?! The company itself says in its 10-K, filed Nov. 27, that it is engaged in "the ownership and management of an acute care hospital."
The caller continues, saying that revenue at Dynacq's clinic and outpatient surgical center, which had been a key driver of Dynacq's growth, was "down about 7% year over year. At the same time, the hospital revenues just skyrocketed here. They were up 160% or something."
CEO Chan: Well, as you can see, we are aligning our company towards -- we are now saying that Dynacq is a surgical hospital company. We are a surgical hospital company. That is the direction which we are going. So, right now all the focus is, the management focus is a surgical hospital company.
Chan later added: "The reason why we are trying to do this is because we listen to a lot of the research analysts or those brokers about a single focus company enhance our shareholder value a lot better than getting more - -- all this kind of other business. ... So, the other thing which is not surgical hospital business is going to go gradually -- scale down."
But last March Dynacq purchased a second ambulatory or outpatient surgery center. Now it's saying that that part of the business will no longer be a focus?!
The conference call continued. A different caller noted that the company had "very impressive" 12% revenue growth in the fourth quarter from the third quarter. "But it appears net income may have declined slightly quarter to quarter. Is that the case?"
CEO: Net income? No. I don't think so. Net income actually go up.
Caller No. 2: I backed out that the fourth quarter net income was about $3,490,000. ... I have this quarter at about $3,378,000. So, maybe a 3% or so decline in net income, and you had 12% sequential revenue growth. I'm just curious where...
The CEO then started talking about how earnings per share of 23 cents were higher than the prior quarter's 22 cents, then the CFO injected:
CFO: Your math ... could be very well correct. The thing that may confuse a little bit during the fourth quarter is where we have the annual audit come in and make all the adjustments. There's no significant adjustment that we made. You may be able to look at the income tax provision for the fourth quarter, which kind of declined pretty significantly from the periods before. That is the time that the auditor come in and look our annual income tax situation.
Caller No. 2: OK ... the real question I'm driving at ... it appears that your profit margins came down quite a bit from quarter to quarter [net profit margin was down nearly 4 percentage points from the fourth quarter to the first quarter] ... and I'm just wondering if you could comment a little bit on why the profit margins ... contracted, and again, is this something we should expect going forward?
CEO: If you look at the number for the whole fiscal year last year, our profit margin is ... 25.3. Therefore our net margin is 24.7 or 24.6. So we are talking about a decimal point percentage difference, and I don't think it's something of anybody's concern.
Year over year, maybe, but quarter to quarter it's nearly 4 percentage points. That's certainly somebody's concern. But I digress, as the call returned to the subject of the allowance for doubtful accounts.
Caller No. 1: I wondered if you'd had a chance to find that answer on the allowance for doubtful accounts on accounts receivable?
CFO: I tried to find out the real question -- all on income statement, the only provision for uncollectible account is -- for this quarter is $41,670 ... before talk about $137,000 -- I don't know what number you have been looking at.
Caller No. 1: $193,000 is what it was in August.
CFO: In August $193,000?
Caller No. 1: August of '01.
CFO: Hold on.
He never did answer the question.
Finally, back to the question of paying a brokerage firm to cover the company, another caller said:
Caller No. 3: I'm showing Gary Weber of Taglich Brothers is the only analyst following the company. On the footer of their report it says his firm was paid by Dynacq to write it. Are there any other nonaffiliated research reports for analyst coverage?
CEO: Taglich Brothers, yes, we paid for them for the analyst report to be written in the beginning. Now, what we are paying them is a quarterly fee to actually have that report available at their Web site. So we don't pay them to write about us anymore, and we do not have any other analysts following this company yet.
Caller No. 3: How much do you pay them?
CFO: $1,250 a month.
Isn't that a conflict? Not according to Bob Taglich of Taglich Brothers. He told me: "They are independent reports. In the micro-cap market, unless you have potential million-dollar fees coming in, it's very difficult for a brokerage firm to cover small firms for research."
Doesn't that mean they're buying an opinion?
"They're not buying an opinion," Taglich says. "We have some stocks that aren't rated." He adds that there is a weeding-out process on companies Taglich agrees to cover, and notes that whether it's hard cash or through investment banking business, companies pay for coverage "one way or the other ... at least we properly disclose it."
He may have a point there. Not that it's the right thing to do -- disclosed or otherwise. 
Herb Greenberg writes daily for TheStreet.com. In keeping with TSC's editorial policy, he doesn't own or short individual stocks, though he owns stock in TheStreet.com. He also doesn't invest in hedge funds or other private investment partnerships. He welcomes your feedback and invites you to send any to Herb Greenberg. Greenberg also writes a monthly column for Fortune.
Brian Harris and Mark Martinez assisted with the reporting of this column. 
----- Original Message -----
Sent: Wednesday, January 16, 2002 3:00 PM
Subject: [CANSLIM] Date: Wed, 16 Jan 2002 22:04:50 +0100
 Pretty strange what is happening with DYII.

Stock has good fundamentals, yet its down 30%? Industry Group kind of OK as well, even winning Relative Strength.

Strange.

-
-To subscribe/unsubscribe, email "majordomo@xmission.com"
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--------------7C0FFF65FE06D1D0B28291B9-- - --------------2945CD134A8A70A3A9CA57C9-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ End of canslim-digest V2 #2045 ****************************** To unsubscribe to canslim-digest, send an email to "majordomo@xmission.com" with "unsubscribe canslim-digest" in the body of the message. For information on digests or retrieving files and old messages send "help" to the same address. Do not use quotes in your message.