Encompass Health Corp (EHC)

[Joe Stocks]

John, Thanks for posting. Here sre some short reponses.

>>a. Stock holders that bought high and sold after the delisting and of course, their lawyers<<

I don't know how manty shareholder suits you may have been a party to but payout settlememts are usually small. The ons they do take out will be one time charges and soon forgotten. Shareholders will probably fare better with the accountanting/audit firm.

>>>b. Patients that were operated on just to generate cash, with no valid medical reason (each such patient could easily demand between $1 to $10 MM, insurance companies do not cover losses due to fraud). I have no way to estimate that but even if it is only 1,000 patients, it is a potential liability of $10 B which they cannot pay, thus they will have to file for protection.<<

I don't think I have seen this as an issue with HLSH. I think THC may have had some of these issues but I don't recall HLSH being accused of such a thing. I sure it would be normal for a isolated case of difference of opinion, but I don't see anything here.

>>c. The IRS is after them with both hands.<<

Actually, from what I understand, HLSH may have a big refund coming. HLSH over reported earnings, not under report. HLSH looks to have paid too much in taxes.

>>d. The bond holders may force conversion at ridiculously low prices.<<

Doesn't appear to be an issue. There is only a relative small amount that has matured. Bond maturities are spread out well over the years to come.