MedCath Corp (NASDAQ:MDTH)

TMFDeej (99.22) Submitted: 8/25/2011 12:14:30 PM : Start Price: $6.77 MDTH Score: -2.31

Intersesting liquidation situation. The company is distributing $6.85 per share to shareholders before the end of the year

MedCath expects to make an additional payment to shareholders of $8.15 to $10.15 per share.

Of course there's a catch (isn't there always :) ):

"That range does not include a reserve or estimate for any liabilities arising out of the ICD Investigation, other currently unknown or unanticipated liabilities or a reserve of such additional amount as the Board of Directors determines to be necessary or appropriate under the DGCL with respect to additional liabilities that may arise after the Filing. Those amounts may be material and may materially reduce the amount of any Additional Liquidating Distributions. Additionally, to the extent that prior to the Outside Filing Date, as may be extended to the Extended Filing Date, the Company has not been successful at selling substantially all of our Remaining Assets, or the net proceeds from the sale of our Remaining Assets are less than the Company's current estimates, or all potential Tax Attributes are not realized, then the amount of any Additional Liquidating Distributions which may be made prior to the Filing may be reduced and the Company will seek to make post-Filing Additional Liquidating Distributions to the extent funds are finally available therefore, the final amount of which may also be
reduced due to the risks and conditions discussed above. We currently anticipate that any post-Filing Additional Liquidating Distributions would be made no sooner than at least the date which is approximately nine months after the Filing and may not occur, if at all, until several years after the Filing. See "Risk Factors — Risks Related to the Dissolution Proposal (Proposal No. 2)" and "Proposal No. 2 — Dissolution — Plan of Dissolution and Estimate of Cash Distributable to Stockholders."

So the potential total distribution to shareholders is an estimated $15 to $17 per share minus the potential liabilities from the ICD investigation. The question is what is that and what could the penalties from it amount to?

In researching the matter, it appears as though the
United States Department of Justice (DOJ) served subpoenas on a number hospitals and health systems as part of a fraud investigation into whether hospitals billed Medicare for implantable cardioverter defibrillators (ICDs) for patients whose conditions did not satisfy coverage criteria set forth in a Centers for Medicare and Medicaid Service (CMS) National Coverage Determination (NCD).

zientsa (39.04) Submitted: 10/13/2010 12:42:44 PM : Start Price: $5.33 MDTH Score: +29.99

Liquidating, properties should be worth fifty percent more then the current price. High quality specialty hospitals.

Oley68 (64.53) Submitted: 7/14/2010 3:38:35 PM : Start Price: $4.06 MDTH Score: -65.56

Being new to this game, I like giving myself reminding notes...Things to look into:
1. Management Effectiveness - Something to look into...Read a long time board member passed away and the Secretary moved on to another job...
2. Negative cash flow....with small amount of cash on hand...

LawfordCap (99.94) Submitted: 2/20/2010 12:12:18 PM : Start Price: $3.56 MDTH Score: +94.34

interesting stock:
low ps
but no return on equity data available

SanDieguito (< 20) Submitted: 11/14/2007 10:37:34 AM : Start Price: $11.53 MDTH Score: +28.35

down $4 to $22

kpedo2000 (24.17) Submitted: 9/4/2007 12:44:38 PM : Start Price: $15.13 MDTH Score: -44.42

MedCath continues to expand its base of cardiac specialty hospitals. Trades at a discount to peers on EV/Ebitda basis. New management has solidified operations and added cost controls. Long term cardiac care is in the sweet spot of serving an aging Baby Boomer generation.

freudtheelder (< 20) Submitted: 1/29/2007 11:23:00 PM : Start Price: $14.84 MDTH Score: -48.62

kkr

MikeSu007 (92.38) Submitted: 12/13/2006 2:39:09 PM : Start Price: $13.96 MDTH Score: -45.41

A David Nierenberg pick... many other good institutions are buying it up.