Research Pit

[Waitedg]

Regarding MLTO - have read the entire MLTO 27 page Wall Street Resources Report. Also have considerable personal experience with Medicare based, direct diabetic supplies purchasing. Have considereable premilinary "red flags" that will need to be removed for further interest on my part. Some of these include:

1. The Latino capacity to pay the 20% non Medicare copay--or for MLTO to have higher collections costs. Fewer Latinos have secondary insurance picking up the 20%--and low income people have fewer dollars to pay the copay.

2. Concern about Raymond J. Talarico, the CEO's background. Would want to check out his experience with Sci-Fi MegaPlex and why he resigned.

3. An overstatement of the likely PE ratio of 25. I would see it more likely as 20 to 21 similar to PSS World Medical(PSSI). I see a projected price of perhaps $4 to $4.15 next year based on June 2006 fiscal year projections of .20 diluted earnings.

4. The assumption that the Latino market has not been penetrated by Liberty, etc. The potential need for diabetes care for the Latino market is assuredly high. But the competition for it will be strong also.

5. Have not looked at web site yet, but Jagman's assessment raises possible concerns here also.

Summing up--would not personally consider a purchase here unless I saw a retracement to at least the $2 area. Could be dead wrong--but these are my intitial thoughts.