Aug. 23, 2014, 7:58 AM
- Joel Greenblatt made investors fortunes at his hedge fund 30 years ago by holding a highly concentrated basket - six to eight names - of deep-value stocks, but his approach today is somewhat different: Buy more than 300 high-quality stocks trading at cheap prices and short more than 300 expensive, lower-quality names. Stocks are weighted in the portfolio depending on where they rank along that spectrum.
- Greenblatt: "[My partner] and I would wake up some days and lose 15% or 20% of our net worth ... now it's more like 15 or 20 basis points."
- The strategy is also available in a trio of mutual funds Greenblatt's Gotham Asset Management offers, and they now account for more than half of Gotham's $7B in AUM.
- A top position last year remaining a large holding after a big run higher is Apple, thanks to "huge returns on capital" and 11% earnings yield. As for Apple's future, Greenblatt will leave that for others to debate: "I don't own just Apple. I own a bucket of companies like Apple, and over time, I know my bucket is going to work."
- Top 5 long holdings now: ENR, SAFM, BG, AXE, CAT.
- Top 5 short holdings now: SUSS, THC, BOBE, KMT, TMO.
Aug. 4, 2014, 5:07 PM
- Tenet Healthcare Corp. (THC +1.9%) Q2 results: Net Operating Revenues: $4,042M (+66.9%); Operating Income: $207M (+2.5%); Net Loss: ($26M) (+48.0%); Loss Per Share: ($0.27) (+51.0%); Quick Assets: $406M (+259.3%); CF Ops: $247M (+93.0%).
- 2014 Guidance: non-GAAP EBITDA: $1.85B - 1.95B.
- Q3 Guidance: non-GAAP EBITDA: $400M - 450M; EPS: ($0.30) - $0.21.
Aug. 4, 2014, 4:24 PM
Aug. 3, 2014, 5:35 PM
- ACLS, ACXM, AEIS, AIG, ANV, APL, AREX, BRS, CAR, CHGG, CKEC, CKP, CNQR, CRK, CUTR, DRC, ECOM, ELNK, ENH, EOX, EPAM, GTAT, ININ, IRWD, JMBA, KAMN, KONA, LF, LLNW, LMNS, MCEP, MDR, MRO, MWA, NLS, OGS, OTTR, PHH, PL, PLOW, PXD, QLYS, REGI, ROSE, RP, RTEC, SALE, SNHY, THC, TNET, TNET, TSRA, TXRH, VNO, VNR, VVC, WAGE, Y
Jul. 29, 2014, 10:18 AM| Comment!
Jul. 25, 2014, 3:27 PM
- Money is flowing into hospital management firms today on bullish views about the impact of The Affordable Care Act. LifePoint Hospitals (LPNT +7.2%) leads the charge after it increased its earnings guidance earlier today.
- (UHS +6.6%) (HCA +2.3%) (SEM +0.4%) (THC +8.8%) (SSY -4.2%) (CYH +3.8%) (CHDX) (SCAI +1%) (ADPT -1.1%)
Jul. 16, 2014, 2:58 PM| Comment!
Jul. 14, 2014, 8:40 PM
- Tenet Healthcare (THC -0.3%) and Humana (HUM +0.9%) sign a new multi-year contract extension that provides Humana members with traditional commercial plans continued network access to Tenet's 79 hospitals, 193 outpatient centers and more than 1,800 doctors. Humana's Healthcare Exchange members in Atlanta, Birmingham, Houston, Memphis and San Antonio will have access to Tenet's services for the first time while Exchange members in Chicago, Detroit and Phoenix continue to have their access.
- The agreement also includes an accountable care organization (ACO) arrangement for Humana's Medicare Advantage members in Atlanta. The ACO is a collaboration between the two organizations that focuses on enhancing care coordination and includes incentive payments for achieving key evidence-based quality metrics.
- Financial terms of the contract are not disclosed.
Jun. 11, 2014, 9:50 AM
May. 5, 2014, 5:57 PM
May. 4, 2014, 5:35 PM
- AEIS, AIG, APC, APL, ARE, AXLL, BDE, BNFT, CATM, CFN, CKEC, CKP, CRK, DATA, ECOL, ECOM, EGOV, ELNK, ENH, EOG, EOX, FLDM, FN, G, HCLP, HGR, HI, IDTI, ININ, KAR, LF, MCEP, MED, MR, NLS, OAS, OTTR, PIKE, PRI, PSMI, QLYS, RBC, RGR, ROSE, RWT, SALE, SKH, SMG, SNHY, STAG, SZYM, THC, TXRH, UAM, VECO, VNO, VVUS, WG, YY, ZIPR.
Apr. 11, 2014, 4:01 AM
- The White House has confirmed that Health & Human Services Secretary Kathleen Sebelius is resigning and will be replaced by Sylvia Burwell, the director of the Office of Management & Budget, assuming the latter is confirmed by the Senate.
- Sebelius' departure comes after she said in October that she should be held "accountable for the debacle" of the launch of Obamacare, although the program did reach the government's target of 7M sign-ups by the end of March. She said yesterday that at least 7.5M people have enrolled.
- One of Burwell's first challenges will be to work with health insurers as they set prices for Obamacare plans in 2015, which industry executives have warned could rise sharply.
- More on Obamacare
- Health insurers: AET, HNT, HUM, UNH, WLP, MO
- Hospital operators: HCA, CYH, THC, UHS, HMA, LPNT
- Pharmacies: WAG, CVS, BIOS, RAD, MHS, PMC, OCR
- ETFs: XLV, XHE, VHT, FXH, IHF, IHI, IYH, PTH, RYH, PSCH, RXL, RXD, XHS
Apr. 2, 2014, 10:25 AM
- The federal mandate expanding the number of diagnostic codes to 69,000 from today's 14,000 and procedure codes to 85,000 from 13,000 stresses healthcare providers. The mandate's intent, termed ICD-10, is to increase the accuracy of reporting and reduce fraud.
- Healthcare institutions face significant investments in training and IT system updates in order to comply with the new rules.
- The original conversion date was October 1, but the Senate passed a bill on Monday granting institutions a one-year reprieve.
- (UHS) (HCA) (SSY) (LPNT) (THC) (CYH) (CHDX) (SEM) (SCAI)
Feb. 25, 2014, 12:26 PM
- Tenet Healthcare (THC -10.6%) is the S&P 500's worst performer as Q4 earnings beat forecasts but took on $400M in new debt and offered lower-than-expected guidance; the hospital operator sees Q1 adjusted EBITDA of $350M-$400M and FY 2014 EBITDA of $1.8B-$1.9B vs. analyst consensus estimates of $447M and $1.96B.
- THC reported Q4 adjusted admissions fell 0.5%, as inpatient admissions fell 2.3%; operating margin narrowed to 4.3% from 9.1%, as operating expenses jumped 75%.
- CRT Capital downgrades THC to Fair Value from Buy as accretion from the Vanguard Health Systems acquisition has not materialized in the near-term; instead of generating significant EBITDA growth, the business contracted from Q4 to Q1 and CRT's guidance suggests that the business will continue to shrink.
- On the other hand, Mizuho says it would be buyers on today's stock weakness, viewing initial 2014 EBITDA guidance as achievable given conservative assumptions around health reform coupled with a continued soft admission outlook (Briefing.com).
Feb. 24, 2014, 5:46 PM
Feb. 24, 2014, 4:35 PM| Comment!
THC vs. ETF Alternatives
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