Asensio & Company, Inc. Announces Investment Opinion on PolyMedica Corporation: PolyMedica's criminal prosecution firmly on track.Business Editors NOTE TO EDITORS: The following is an investment opinion issued by Asensio & Company, Inc. NEW YORK--(BUSINESS WIRE)--Sept. 9, 2003 Last week investors bid PolyMedica Corporation's (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : PLMD PLMD Periodic Limb Movement Disorder (sleep disorder) PLMD Physical Layer Medium Dependent (networking) PLMD Please Let Me Die , $52.00) shares up as high as 29.5% above the prior week's close after the company announced that it would continue to capitalize its advertising expenses. Earlier PolyMedica had disclosed that the Securities and Exchange Commission believed that its advertising expenses did not qualify for capitalization. Last week's announcement has no effect on PolyMedica's historical or future cash flow. PolyMedica will merely continue to report lower than actual expenses and inflate inflate - deflate its non-cash earnings. Yet PolyMedica's stock reaction was material. PolyMedica's stock price is entirely and completely a function of investor's estimates of the company's incurred criminal and civil liabilities. As a result, the only reasonable conclusion is that investors are buying PolyMedica shares believing that its accounting was one of the potential criminal charges and that the accounting announcement positively impacted the severity or likelihood of the penalties PolyMedica faces. These beliefs are completely wrong. Last week's announcement has no bearing whatsoever on either the on-going proceedings or the severity of the outcomes. For 2 years PolyMedica wrongly denied the existence of any civil or criminal investigation. The denial continued even after PolyMedica was inexplicably in·ex·pli·ca·ble adj. Difficult or impossible to explain or account for. in·ex  pli·ca·bil denied listing on the New York Stock Exchange New York Stock Exchange (NYSE)World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. . Finally in August 2001, 13 days before the Federal Bureau of Investigation Federal Bureau of Investigation (FBI), division of the U.S. Dept. of Justice charged with investigating all violations of federal laws except those assigned to some other federal agency. ("FBI") raid, PolyMedica acknowledged first the existence of an investigation and then that the investigation is criminal. PolyMedica then began claiming that the illegal activities were old news and that it was fully cooperating with the investigation. As a result, investors have been repeatedly lured into buying PolyMedica's stock in anticipation of a settlement. No settlement has occurred. Instead, PolyMedica was forced to disclose the existence of allegations of obstruction of justice A criminal offense that involves interference, through words or actions, with the proper operations of a court or officers of the court. The integrity of the judicial system depends on the participants' acting honestly and without fear of reprisals. . Contrary to the on-going stock promotion, there is no irregular delay in the PolyMedica investigation. There are no facts in the record to support the belief that there are or that there ever have been any settlement talks to end the prosecution. On the contrary, all available evidence from the Centers for Medicare and Medicaid Services The Centers for Medicare and Medicaid Services (CMS), previously known as the Health Care Financing Administration (HCFA), is a federal agency within the United States Department of Health and Human Services (DHHS) that administers the Medicare program and Office of Inspector General Noun 1. Office of Inspector General - the investigative arm of the Federal Trade Commission OIG independent agency - an agency of the United States government that is created by an act of Congress and is independent of the executive departments , the Department of Justice and the FBI show a consistent 4 year and 3 month record of diligent dil·i·gent adj. Marked by persevering, painstaking effort. See Synonyms at busy. [Middle English, from Old French, from Latin d and effective prosecution of a very serious criminal investigation. Asensio & Company, Inc. is actively engaged in short sell investments and publishes research on securities it believes are overvalued Overvalued A stock whose current price is not justified by the earnings outlook or price/earnings (P/E) ratio and thus, expected to drop in price. Overvaluation may result from an emotional buying spurt, which inflates the market price of the stock or from a deterioration in a . Our published work with short-selling transactions is available on the Internet at www.asensio.com. Asensio & Company, Inc. is not a registered broker-dealer. The material provided in asensio.com is for informational purposes only. No mention of a particular security in asensio.com constitutes a recommendation to buy, sell, or hold that or any other security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. 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