Value Microcaps Motherboard

[MikeDDKing]

I picked up a few shares of MDF at $2.19 today. They made some nice progress in 2007 on improving their Medical Expense Ratio (MER) and growing the membership in their HMO. I believe the stock pulled back in the last few weeks because of poorer earnings in some of the other players in the industry. However, at least one of the companies that had problems was due to prescription drugs which is an area where MDF doesn't have an exposure. There is a bit of throwing the baby out with the bathwater. I think that MDF stock at sometime this year will move into the high $2s if not higher. However, I'll add that Q1 is historically a weaker earnings quarter due to medical expenses in the winter months and higher marketing expenses. Having said that, I think that a weaker Q1 is expected by shareholders and is largely built into the current stock price. I may build on this position if there is further weakness in the stock price.

I've been continuing to build on my exposure to the healthcare sector as I find companies that I feel are attractively priced and are growing. At present healthcare stocks are between 32% and 35% of my invested capital.

Mike