I don't short stocks. Notice the name foreverlong07. Everyone chooses their own path in which stocks to buy. I have made a lot of money on THC during the run up. I took the option to take a lot of money off of the table. I am simply not as confident as you in the near term about what is going to happen with THC. Obama Care is a mess whether Obama wants to admit it or not. I hope you do well with it.
Sentiment: Strong Buy
So which one is it? This is your quote from a few days ago: "The drop occurred because ObamaCare is a mess, and Tenet was thought to be one of the biggest benefactors of ObamaCare. The market is telling you this, and could push Tenet down into the mid thirties. Look at the insider selling that is going on."
What insider selling? There was a total of 25,000 shares of BUYING.. Then you said your broker told you this would go down to 30-36..LOL So tell us how your short is working out for you..
Appreciate the thought, but actually I had too much money tied up in THC, and a couple of other hospital management stocks. I am in the process of diversifying further. THC, along with the other hospital stocks got a nice recommendation from Glenview Capital, but I sleep better at night not having so much money in this sector.
I agree in that obamacare will take a long time to get "fixed" but the downside for THC has played out. Run the valuation.. $40 is too cheap. There is a lot of support from Appaloosa and others. Also, you can't ignore the insiders making recent purchases.
I am betting that ACA will take longer than expected to get fixed, and that THC will see the mid-30's with the end of year sell-off, and some minor corrections through the first of the year.
While it lasted , hope everyone took profit , we know the corp. did , almost wonder if they knew in advance the ACA would fail from the start. Well we can always play the downside.......
Talked to my broker about this on Friday. Sold 40% of my position in the stock. Decided I did not like what I was seeing and hearing about ACA, and its potential impact on hospital owners and operators. Further research indicated that some of the Tenet insiders have been selling around $41 PPS and above. Discussion with my broker indicated that THC could, with the degrading of ACA, go down to $30 to $36 PPS support levels. Believe it was JP Morgan just that gave THC a buy rating with a $50 PPS target. Seems that was pre-ACA and all of the discussion about its huge problems.Decided I am not taking a chance on this one. I am taking the money and will put it in other stocks and investments. This one is too much a risk IMO, and by the way my broker's opinion.
I agree 100%, with Obama on the ropes with ACA this is going down, cashed out at 45 and bought Jan puts . May reverse my play as progress on ACA are reported.
The drop occurred because ObamaCare is a mess, and Tenet was thought to be one of the biggest benefactors of ObamaCare. The market is telling you this, and could push Tenet down into the mid thirties. Look at the insider selling that is going on.