Markets & Finance

CIBC World Cuts PolyMedica to 'Hold'


CIBC World downgraded PolyMedica Corp. (PLMD) to hold from strong buy.

Analyst John Calcagnini says the company's been under investigation by the FBI since June 1999, and he notes a Barron's article on August 5 that stated the FBI delivered grand jury subpoenas in late July to several people close to PolyMedica, with a federal grand jury looking into possible Medicare and investor fraud. He says the company acknowledged in a press release that it has recieved additional requests for documentation from the government and SEC, and sees increased possibility of criminal and/or civil action.

Calcagnini recommends investors wait for further clarity and resolution of any investigation before reconsidering investment in this company.


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