Pacific Health Care Organization Inc. (PFHO)

[jbaxter]

Waikikian, I've asked others the same thing. Those that I asked to look at this were concerned that sequential earnings and revenues were lower this quarter even though the loss of the large customer and overflow from the other won't occur till the next two quarters. Third Qtr earnings were 69 cents on revenues of $2.75 mill, and fourth qtr earnings were 58 cents on revs of $2.39 mill (check my math). There was also concern about the margins of the business that is leaving vs. the business that they may grow into.

My unprofessional and women's intuition tells me that the next two quarters probably won't be what will get people excited, and we'll have to wait till the third quarter to find out exactly what core earnings will look like with those revenue losses being fully digested.

THAT SAID, I am still positive on the company based on enrollment growth and the fact that both the CEO and company are buying back stock. How many people are disappointed and want to sell or are trying to salvage gains vs. the amount of stock the company and CEO can buy will set the price in the short term. And the wild card is how much the company would be worth to another company that might like to have their business.

FWIW, that's my take.