Hedge funds win big shorting stock from companies that are too late to course correct. Centene seems like investment opportunity here with short sales. Any thoughts?
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I predict Centene / Wellcare is a matter of time, they will be out of business in 10 years, they know and they are planning accordingly, they are going to leave al lot people hanging on the line and they do not care, they know, the pandemic is a huge awaking call for Healthcare future and they will try to cash as much as they can before they are no competitive enough to be in the game. Just one more game for the rich and powerful, all over again the music chairs, venture capital game like the one we have in 2008 with mortgages, so be aware and plan accordingly
Wonder if some other assets will be sold to raise cash. Today they announced $2.2 billion in senior notes due 2031 primarily to purchase senior notes due 2025, which is a kick the can down the road strategy. https://seekingalpha.com/pr/18187238-centene-corporation-announces-offering-of-senior-notes
Sounds to me that Centene is building a cash position for reasons related to acquisitions, or to weather getting hammered this year on utilization and HHS policy. And meanwhile there are 3K people (and believe that is an understatement) out on the street in a rotten market, though some (like me last year) are grateful to be out of the show.
Thanks for your expertise. Moving from insuring 1 in every 15 Americans to 1 in every 13 or 12 by end of year is going to hurt revenues I would think. Will keep following competitors innovations and plans to steal market share when ACA Marketplace reopens. Amazon/AWS is going to be great disrupters to the payer space too.
Not right now–share price closed a bit above $60 today. Nowhere near cheap enough to be attractive to shorts. And if there were moves to do so, MFN would call Washington right away and have trading stopped.