Dec. 17, 2013, 6:24 PM
- Shares of some of the largest U.S. hospital management companies fell after a Citigroup survey of November hospital traffic showed admissions at their weakest level ever.
- The report showed inpatient admissions down 4%-5% last month, saying a new Medicare billing rule calling for inpatient stays to require at least two nights' stay appears to be hurting hospitals.
- Although investors generally have been upbeat on the sector because of the implementation of Obamacare, which promises to deliver many more insured patients to hospitals' doors, Citi calls the insurance exchange rollout "paralyzing" for hospitals.
- Among hospital operators today: HCA -3.4%, CYH -3.4%, THC -1.8%, UHS -0.8%, HMA -0.4%, LPNT -0.2%.
Nov. 25, 2013, 3:55 PM
- Apple (AAPL), Google (GOOG), and AIG are the most popular (long) holdings of hedge funds, according to Goldman's latest hedge fund monitor, which analyzed the positions of 783 hedge funds with $1.7T of gross assets. Hedge fund holdings of AIG, however, account for 14 of the company's float compared to negligible amounts for Apple and Google.
- The 20 most concentrated hedge fund holdings as defined by the percent of equity cap owned by the funds has consistently been a significant outperformer, according to Goldman. In order: AN, STZ, JCP, FDO, THC, HRB, BEAM, MU, NWSA, VRSN, CBG, NFLX, GT, TSO, ETFC, MSI, WPX, WYN, HES, CCI. The top 20 last quarter is here.
- Overall, the studied hedge funds' performance leaves a bit to be desired, with average return of 6% YTD. Fewer than 5% outperformed the S&P 500, and 20% of funds posted an absolute loss.
Nov. 8, 2013, 9:19 AM
- Amarin (AMRN) upgraded to Buy from Neutral at Citi. Price target unchanged at $2.50.
- Salix Pharmaceuticals (SLXP) upgraded to Buy from Neutral at Janney. Price target hiked to $95 from $60. See: SLXP in deal for SNTS.
- Tenet Healthcare (THC) initiated at Market Perform at FBR. Price target is $49.
- Universal Health Services (UHS) initiated at Outperform at FBR. Price target is $94.
- Quest Diagnostics (DGX) initiated at Market Perform at FBR. Price target is $68.
- HCA Holdings (HCA) initiated at Outperform at FBR. Price target is $53.
- Lifepoint (LPNT) initiated at Market Perform at FBR. Price target is $55.
Nov. 6, 2013, 9:16 AM
- "Unfortunately, for the third year in a row Tenet Healthcare (THC) has much in common with their Dallas neighbor, quarterback Tony Romo of the Cowboys, in our view. Both can be above-average operators but consistently fail to come through in the fourth quarter." That's Wells Fargo's Gary Lieberman with his take on THC's Q4 EBITDA guidance ($400-450M).
- THC downgraded to Market Perform from Outperform.
- Price target cut to $41-47 from $50-55.
- See also: Q3 results, Q3 summary, CC transcript
Nov. 5, 2013, 9:39 AM
- Tenet Healthcare (THC -7.7%) is trading sharply lower out of the gate following its Q3 report.
- For the period, adjusted EBITDA growth was 7.1%, compared to 16.7% growth in Q2 and 16.6% growth in Q1. In Q3 2012, adjusted EBITDA rose 40% (the most in a decade) so this might have been a tough compare.
- Adjusted admissions fall 0.5% while emergency department visits and outpatient visits rise 3.1% and 3.5% respectively.
- Adjusted EBITDA outlook for Q4: $400-450M (so Y/Y growth of between 19% and 34%) reflecting "assumptions for continuing soft inpatient volume growth and a less attractive payer mix." (PR)
Nov. 4, 2013, 5:50 PM
Oct. 15, 2013, 5:15 PM
Oct. 8, 2013, 7:47 AM
- "Our estimates assume a strong inpatient and outpatient revenue growth driven by pricing and admissions," says analyst Brian Zimmerman. He also expects significant growth in the Conifer business driven by contract wins.
- "Longer term, we expect the VHS acquisition to be a strategic positive for the company, as it expands THC’s presence in new markets and provides opportunities to realize synergies via cost management, use of Conifer’s business solutions and supply chain management."
- FY2013 EPS estimate is cut a penny to $2.27. 2014 is boosted to $3.84 from $3.20, and 2015 is raised to $5.20 from $3.79.
- THC +1.8% premarket.
Oct. 2, 2013, 3:16 PM
- "The more you're exposed to states with large numbers of uninsured people, the better it is for a hospital in the future," Tenet Healthcare (THC +6.8%) CEO Trevor Fetter tells CNBC, regarding the outlook for the industry now that Obamacare is in place.
- This bodes well for THC, as its purchase of Vanguard Health Systems (VHS) doubled the company's size in the state of Texas, adding what Fetter says are "important" markets in San Antonio, Brownsville, and Harlingen.
- The VHS acquisition was completed yesterday.
Sep. 9, 2013, 3:20 PM
- Shares of Tenet Healthcare (THC -4.3%) fall after Fitch and Moody's both assign junk-level ratings to its proposed offering of senior notes, which it announced on Friday in a private offering to help fund its Vanguard Health purchase.
- The tranche of $1.8B in senior secured notes received a BB/RR1 rating from Fitch and a Ba3 rating from Moody's, while its proposed $2.8B tranche of senior unsecured notes got a B-/RR5 rating from Fitch and a B3 grade from Moody's.
- Fitch kept its Negative Watch on the ratings, citing strained free-cash-flow generation and "industry-lagging profitability" at both THC and VHS, which it plans to acquire.
- Moody's confirmed its B1 corporate family rating on Tenet and its outlook for the ratings is stable. However, it downgraded Tenet's Speculative Grade Liquidity Rating to SGL-3 from SGL-2, citing the anticipated cash need associated with upcoming maturities, and a belief Tenet's liquidity will be constrained in the near term by significant capital spending requirements.
Sep. 6, 2013, 2:30 PM
- To finance part its pending acquisition of Vanguard Health Systems (VHS +0.1%), Tenet Healthcare (THC -1.7%) is selling $2.8B of senior unsecured notes and $1.8B of senior secured notes through a private placement.
- The secured notes will be guaranteed by and secured by a pledge of the capital stock and other ownership interests of certain of Tenet's subsidiaries.
- In addition to financing the acquisition, some of the proceeds will also be used to refinance certain of Vanguard's existing indebtedness.
Aug. 21, 2013, 9:32 AM
- AIG remains the "king of the hedge fund castle" writes ValueWalk, as Goldman's latest Hedge Fund Monitor shows 69 funds have the stock in their top 10 holdings as of June 30, ahead of #2 Google (GOOG) at 65 and #3 Apple (AAPL) at 50. The percent of equity cap owned by hedge funds is 14% for AIG, as opposed to negligible amounts for both Google and Apple.
- Based on percent of equity cap owned by hedge funds, Charter Communications (CHTR) is the #1 hedge fund hotel at 37%. Among S&P 500 stocks, J.C. Penney at 36%, Constellation Brands (STZ) at 30% and H&R Block (HRB) at 26% lead the way. The average for the entire S&P 500 is 5%.
- Goldman's basket of 20 "Most concentrated" hedge fund stocks has outperformed the S&P 500 by nearly 1200 bps YTD. Since 2001, the strategy has outperformed the S&P 69% of the time and by an average of 263 bps per quarter. In addition to the earlier-mentioned names there's: AN, VRSN, FDO, THC, CBG, GT, NFLX, TRIP, LYB, WPX, MSI, BEAM, DLTR, ZTS, WYN, LM, ETFC.
Aug. 6, 2013, 8:42 AM
- Tenet Healthcare (THC) net losses widen to $50M from $6M a year earlier.
- Revenue +7% to $2.422B, a smidgeon below consensus of $2.424B
- Adjusted EBITDA +16.7% to $336M.
- Adjusted admissions -0.7%
- Grew outpatient visits and emergency department volumes, and doubled revenues in Conifer services business.
- Acquisition of Vanguard Health Systems expected to close by year-end
- Cuts FY adjusted EBITDA outlook to $1.25-1.3B from previous forecast of $1.33-1.43B, reflecting "softer-than-anticipated inpatient volumes." (Previous) (PR)
Aug. 6, 2013, 8:29 AM
Aug. 1, 2013, 1:11 PM
- Tenet Healthcare (THC -0.1%) and Health Management Associates (HMA +0.3%) are facing charges of paying kickbacks to a Georgia clinic in exchange for referrals.
- The two hospital chains are being accused in a whistle-blower lawsuit brought by Ralph Williams, a former CFO of HMA, who says the clinic recruited pregnant, undocumented Hispanic women, who would be eligible for Medicaid benefits when they gave birth, and referred them to HMA and THC hospitals in exchange for kickbacks.
- HCA recently reported its Q2 earnings rose 8.2%, as the hospital operator saw more patients and posted more revenue from each visit.
Jul. 16, 2013, 3:10 PM
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