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SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
______________________
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): DECEMBER 4, 1996
PERSONAL DIAGNOSTICS, INCORPORATED
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(Exact name of registrant as specified in its charter)
NEW JERSEY 0-10128 22-2325136
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(State or other jurisdiction (Commission File No.) (IRS Employer
of incorporation) Identification No.)
3 ENTIN ROAD PARSIPPANY, NEW JERSEY 07054
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (212) 952-9000
N/A
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(Former name or former address, if changed since last report)
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ITEM 5. OTHER EVENTS
The focus of Personal Diagnostics, Incorporated's (the "Company") activities in
the future is to remain operational anf the Company has in past quarters
established a policy of limiting its exposure to speculative trading or
investment activities to no more than one quarter of total assets.
The Company reaffirms its desire to reengage more substantially in standard
commercial activities and continues to evaluate alternatives to achieve this
obnjective.
However, as a result of what management of the Company (the "Management")
considers to be a seriously overpriced stock market, the Company has removed
the 25 percent guideline on the percentage of Company assets and net worth that
may be exposed to speculative risk and therefore, Management may use its
discretion without such limitation. As of December 4, 1996, the Company was
short 60 S&P 500 Futures Contracts and was also short a variety of 360 S&P 500
Futures Index.
If the general stock market remains at current levels, the Company will not
experience a material loss exposure. However, since the position held by the
Comapny are speculative and highly leveraged, if the general stock market
should rise further, the Company could sustain losses up to $2.5 million or
approximately one-third of its net worth. Management believes the risk to
reward balance is favorble, but wants shareholders to be fully aware ot the
risks.
At the close of business on Decemnber 4, 1996, the Comapny would realize
estimated loss of $350,000 should it liquidate the above-mentioned futures and
options positions.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
PERSONAL DIAGNOSTICS, INCORPORATED
(Registrant)
Date: December 4, 1996 By: /s/ JOHN H. MICHAEL
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John H. Michael, Chairman
President and Chief Executive Officer