9 Comments
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Cristobal Botanch's avatar

I liked this one: " Government ... it’s simply an insurance company with an army attached."

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Kingkang's avatar

Thanks Rene. Great post. I'm thinking that UNH has too many lobbyists and is TBTF abd prob we'll find out that the DOJ will settle with UNH. I see the fintwit ls loving UNH all the time. I just think that they focus on "health costs" and preventing payout to patients is just scummy. I know that my wife's obgyn network dropped UNH and the doc was saying how incredibly difficult UNH is to deal with https://www.uhc.com/axia

But of course here, UNH blames Axia on price hikes but that's THEIR narrative

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Rene Bruentrup's avatar

Even if they have strong lobbyists, UNH's problem is that they have to prove their existence can lower the costs for the government. If that's not the case, why should the government offer MA? Huge political risk.

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Kumar's avatar

No body should buy the dip just like that. They need to see more evidence of stock retracting from fall towards upside. Else you can be an accidental long term investor too.

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Rene Bruentrup's avatar

That reminds me of the saying: What's a trade that goes wrong? 😁

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Li Jiang's avatar

you can be right about the company and...

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Rene Bruentrup's avatar

you can also go all in in poker with 2 and 7 and win. might not be the smartest thing to do though.

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Paul's avatar

Good analysis. I did pop in and buy the dip. But sold 3 weeks later. UHC had more headwinds but it's also a behemoth in the industry which translates to big lobbyists.

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Rene Bruentrup's avatar

Even if lobbyists are strong, it's very dangerous if much of a company's valuation depends on them. Public opinion can change quickly. One tweet from Elon can wipe out hundreds of billions of market cap here.

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