Metropolitan Health Networks (MDPA)

[Bobwins]

First day on AMEX 11/22/04. +.07 to 2.26, new symbol MDF

[Bobwins]

Metropolitan forms HMO!!!!Topline rev is coming! No financing required. Bobwins

Metropolitan Health Networks Files to Become Florida HMO; Company Pushes Ahead to Fill Medicare Advantage Need in Martin, St. Lucie, and Okeechobee Counties
11/18/04


WEST PALM BEACH, Fla., Nov 18, 2004 (BUSINESS WIRE) --
Metropolitan Health Networks, Inc. (OTCBB:MDPA), a provider of high quality, comprehensive healthcare services to patients in South and Central Florida, announced today that its wholly owned subsidiary, METCARE Health Plans, Inc., has filed an application with t[Blocked Ads]
he Florida Department of Financial Services, Office Of Insurance Regulation for a certificate of authority to operate a Health Maintenance Organization (HMO) focused on the provision of Medicare Advantage services. METCARE Health Plans, Inc. has also filed the requisite application for a health care provider certificate with the Agency for Health Care Administration. The Company anticipates operating initially in the counties of Martin, St. Lucie and Okeechobee.

Commenting on the licensing of the HMO, Debra Finnel, Metropolitan's President & Chief Operating Officer, stated, "We are very excited to officially begin the process of launching our Medicare Advantage plan in Florida's Treasure Coast. This new business represents a natural extension in our core expertise of providing high quality healthcare to Florida's growing Medicare population. We are targeting Florida's communities that are underserved by the Medicare Advantage program, a program that has been revitalized by the recently enacted Medicare Modernization Act. Of 2003 (MMA)."

Michael Earley, Chairman & Chief Executive Officer of Metropolitan stated, "This program is becoming a bigger part of the Florida market and our application to become a licensed HMO is in keeping with our plan to diversify our revenue stream in this market. There are over 80,000 Medicare eligible lives in Martin, St. Lucie and Okeechobee counties who are currently underserved by managed health care and could be added to the approximate 26,000 we currently serve in the areas of South and Central Florida on behalf of Humana." Earley continued, "Other than the initial capitalization of the HMO, Metropolitan will have modest capital expenditures to commence HMO operations, and the roll out will be planned to compliment our existing business initiatives and relationship with Humana." Earley concluded, "Over the past 24 months all of us at Metropolitan have worked very hard to ensure that our company has adequate financial resources, and the necessary regional and statewide relationships to support the successful launch of our HMO. We are proud to say that the initial start-up costs and reserve requirements can be funded from Metropolitan's own resources, and we expect that any future funding requirements could be met with internally-generated funds or through the capital markets."

[Bobwins]

The Raging Bull board guys get a little carried away sometimes. Earley does exactly what he says he's going to do. The checklist is half done!! We are off to better times.

Bobwins

[RMIWA]

Nice news about AMEX. I guess all of the concern from the lack of discussion during the CC was not warranted. MDPA still chugging down the track and it is a nice ride...

Mat

[Bobwins]

q3 earnings out. Earned .07eps diluted. Revs up to $40 million, net of 3.7 million. Huge improvement over last yr, especially in balance sheet. Very clean with minimal debt and a big increase in cash to 6 million. They are basically debt free. Should see a nice continuation of rally. Stock is still very undervalued. Has earned .21 thru 9 months. Should end the year in the .24-.26 range for a fwd p/e of 7. Still very cheap, considering excellent balance sheet and profitability.

Bobwins

[Bobwins]

Another excellent day for mdpa. Humana reported their earnings, did well and had several positive comments on issues that also affect Mdpa.

1. Humana earned .52eps. They are guiding for .23 to .26 for q4 because they intend to spend a lot on advertising for Medicare Advantage. Enrollment is up 46K this year to 300K+ but most(32K) was from members of an acquired insurer. So Humana looks like they are serious about increasing enrollment.

2. Hurricane damage was not significant according to Humana. Less clinic visits and lower expenses were offset by patients having to be admitted to higher cost emergency room treatment during the hurricane period. Based on this commentary, impact to Mdpa should be minimal.

3. Humana had 11 to 14% gains in per patient revenues in 2004 as Medicare increased per patient fees for HMO's. Humana projects further increases of 5 to 7% in 2005.

Based on this positive info, Mdpa had a strong rally, +.18 to 1.71. If they repeat eps of .08 or more, we could challenge $2 by yearend. .08X4=.32 or about a 5.3 fwd p/e. Mdpa is still very undervalued. Balance sheet is in excellent shape with good cash, high current ratio and equity. Delinquent taxes are all paid, past due payables caught up and no major problems on the balance sheet.

[Bobwins]

Nice move today in mdpa. +.15 to 1.64. Moving towards my goal of $2 by 12/31/04. Hoping that solid q3 will move stock up towards that number. P/E ratio is extremely low considering the turnaround in profits and the beginnings of rev growth.

Fwd p/e of 8 would get us to $2! Bobwins

[Bobwins]

Thanks for the reminder about dhb. Never hurts to look again. Bob

[shmolton]

OT-Bob re-TRLG

Thanks for the congrats on the house. It is tiring, I've been painting up a storm, I'm getting quite a workout. As far as TRLG goes, I'm still expecting at least another 50% it's looking very strong, I'm still holding it all and plan on holding for at least another month unless it makes a huge run to new highs before then. I've been trading 25% of my position so I may take that out next week on the next jump to the high 2's, and put that back into MDPA. I'm still holding about 30% of my original holding there, and I'd like to buy back the last 30% that I sold and put into TRLG. I'm only holding 3 position right now, these two and DHB. I know you don't want to buy back DHB after holding it at lower prices, but they're firing on all cylinders and their future looks very bright, I'm still expecting huge gains from them over the next year. Did you see that Roth initiated a strong buy on them on Friday? I think this is still a good entry point after the pull back from 17. I'm looking for it to break the 20's before the end of the year.

Be well,

Graham

[shmolton]

Thanks...
...give me a call if you're heading to Eugene-541-206-4465.

[babycakes]

welcome home.

[Bobwins]

shmolton

Congratulations on the house. Tiring but must be exciting. Did you already sell trlg or going to next week? Do you think it's run its course?? I am holding a few shares. Seems like they have a lot of momentum. In the huge clothing industry, I think they are just getting started in penetration and total sales. Maybe I am too optimistic. Bobwins

[shmolton]

OT-Hey bob...
...got my house on Friday, just got may cable internet set up, ready to roll. Might have to buy back some MDPA next week, with some of those TRLG profits.

[RMIWA]

Bobwins,

Nice site with good information. Thanks for your continued leadership in MDPA. Looks like we have a buying opportunity out there.

Mat

[Bobwins]

Ducks game is Oct 30, 2004. I have a college friend that has been taking me to Husky games for several years. He has season tickets to both football and basketball. So this other friend and I decided to treat him to an away game. Never been to Autzen Stadium. Probably not going to be a pleasant experience this year. Huskies don't look too good and Ducks are doing fine. Bob

[shmolton]

I sure wish I had got in on that EGY with you...
...I've been watching it keep going up and up, thinking it would pull back, but noooooo. ;) I sold TGA in the 2.30-2.40's, for money for the house, and have lightenned up some on MDPA but still holding there, I'm actually hoping that TGA and MDPA stay down so I can move my TRLG profits back to them. I'm expecting new highs from TRLG rather soon.

When is the ducks/ huskies game anyways?

[Bobwins]

shmolton

Yes, I picked him up after 3 weeks. He had a great experience. They had great weather. Picked them up in Mt. Rainier National Park. He has gone back to San Diego to look for a job. His girlfriend is off to Europe for a Masters program.

Stocks have turned up lately. Last few days have been great due to TGA, MDPA, EGY.

I haven't been to Eugene in a while but always seemed like a great city. I will be down there in a few weeks. Bought tickets to see the Ducks beat the Huskies. Bob

[shmolton]

Hi bob...
...a third child on the way changed our minds. We found out we had another one coming last month, so we decided to come back to where we always wanted to settle down, with family and friends. So we're currently in escrow on a home in Eugene and looking to close this week. This is my first home so I'm quite exited. I'm gonna have to decide if I want to get a job, or keep trading the stocks. How things goin for you, did your son finish his hike safely?

[Bobwins]

shmolton

How are you doing?? Still knocking them dead??

You didn't tell me anything about moving to the NW. Did your recent trip change your mind or give you any ideas??

Bobwins

[shmolton]

Hi!

[Bobwins]

Mdpa very strong today. New 52wkhi!!! 1.45 on 203K

Hurricanes not going to hurt mdpa that much. Still getting 25,000 X $400 per month regardless of clinics being open. $10 million a month in revs, expenses will likely be light because clinics are closed and patients evacuated.

Damage to clinics could hurt ongoing revs but overall mdpa should be ok in spite of hurricanes.

Bobwins

[stock_peeker]

Oops. Sold out at $1.26 and now watching it take off in spite of heavy wind and rain and Frances. that'll teach me for trying to apply logic to the stock market. Good luck here guys. I'll certainly keep my eye on MDPA and try to find a good re-entry point.

[e-mail]

[shmolton]

Thanks Bob, MDPA is looking good,

[FranknStein]

Nice work BOB.

[FranknStein]

Hey BOB...Nice work.

[atco1982]

Bobwins - looks good