Overall the sector is fairly tight, so I believe investments in top players could bring up some of the other companies vis-à-vis speculation and the sheep mentality. That is one possible explanation for the somewhat ubiquitous sector investment, despite inconsistency in balance sheet/operating fundamentals. UNH clearly outperforms most of the others and in my opinion is very well run. That is a good launching point for downward speculation. Look at what GS did a few weeks ago when they were pushing MEE (admittedly a very different sector). It temporarily brought up even some of the laggards in that sector.

I don’t completely disagree with your speculation. Now that Tom Daschle is advising Obama and Democrats to put a “government takeover/option” aside and focus on other avenues, it has provided an additional analytical dimension. But once the market realizes this is a Trojan horse and the alternatives under consideration could slowly devastate the sector (slow burn vs. nuclear) we could possibly see some different conclusions being reached. Overall, time will tell.

The reason for those rankings is the health care that 18% of those without insurance get. The remaining 82% get the best care in the world.

Lets not ruin the best care in the world that those 82% get to “fix” things for the remaining 18%.

I pay everything until I spend $3K on medical, and then I still pay 20% until I hit $6K out of pocket.

The upside is that I can put money in a checking account pre-tax. It’s in my account and I don’t lose what I don’t use Dec 31st.

6 months later and I’m really convinced they save huge amounts of money. I actually look at what things are going to cost. If it’s necessary, I do it. But if it’s just defensive expense for the doc, I don’t.

*They think they can become followers in a hurry if they have to..

*They doubt socialized Medicine will happen.

*HSA&HIgh-deductible policies will happen em masse during Obama.

Despite losses seem like an inevitable thing that will survive even the next years.

Most of the time, when pundits discuss “healthcare” or “health insurance,” they are actually discussing “health maintenance.” This is a pre-paid payment plan for the normally expected annual cost of medical care.

These are two different concepts, and the GOP needs to wake up to that fact and start talking about it.

Health “insurance” is not even available in most states unless it is combined with a health maintenance plan. If I could, I’d buy insurance and dump maintenance. I’m 28 and healthy. I need something that will cover me if they find a tumor in my brain or I get in a car wreck, not a case of the sniffles. That’s insurance.

In my corporate finance classes (and since in the actual business world), I was enlightened to a spurious concept: Profits are too low.

If a project is profitable, it is worth the investment. The issue is one of opportunity cost: “Is there something else we could invest in that will make more money, but would prevent an investment in this project?”

Same goes for investing in companies. The profits might be low, but they are still better than losses!

This gang looks like they are randomly throwing crap up in the face of the American people, but it’s possible that there is a method to their insanity. Hard to give them that much credit, but there are probably some evil intelligent people like Soros behind the scenes who have been planning this for an awfully long time.

Look at the action in UNH’s competitors. This isn’t a relative value trade. For your case to work, it needs to be applicable to the other three as well.

Also, what if it turns out that the insurance industry will indeed be decimated by national healthcare in the next few weeks? Money will rotate out just as fast as it rotated in. Why would investors not just wait and see?

UNH continues to grow after tax income and that trend looks like it will continue upward (although if I remember correctly there are some analysts who are not convinced (shocker- I know). They also recently had their debt rating confirmed and have revenue growth over the past five years somewhere above 20%. (Caution, ObamaCare Mendacity Spoiler Follows) As you correctly pointed out, their margins are slim compared to similar sized companies in other industries.

If I had to conduct any divination, it would be that UNH’s product diversity is what some analysts are looking at. UNH has a big role in the Medicaid/Medicare manage care area and decent related growth trends. Given these fundamental facts, some are betting at a minimum UNH will continue to grow in those areas based on population/social demographics. A potential bonus is that any watered down healthcare plan may have a positive affect on those programs (the lobbyists are working overtime).

Overall, the current outlook is good, but could change with the advent of a truly socialized program which will destroy the private market. But it is just way to early to tell. Think short term profits.

The out right lying is why I abhor politicians. The average person will buy their BS but those in the know, it will drive them crazy. I often thought it would be best to be fat, uninformed and happy.

The man heading the country is a big, big liar. But those welfare recipients don’t know or care if he is a liar.

Shopping for Insurance period is a pain but the controversy right now is bringing down the cost. What would more open markets do for the costs of insurance and medical costs? Competition is part of the answer for the private sector.
Our local clinic relies on volunteer doctors and nurses who donate their time once a month and the cost is based on your ability to pay.(prescriptions are samples supplied by drug companies). The equipment is donated by doctors offices and hospitals who would have otherwise thrown them away. Our community holds fundraisers for cash donations along with regular donors who give what they can.

There are many alternatives to costs and care being made by individuals and groups. We should encourage them and make their efforts known.

Obama made a massive tactical mistake when he pushed the stimulus & bailouts first - it has exhausted his political capital. He should have pushed for Card Check & Amnesty first - those would have locked in Democrat majorities for centuries…

http://online.wsj.com/article/SB124484677048211303.html

Among the more notable failed proposals were a bill that would have shifted the burden of medical proof away from plaintiffs and on to defendants in asbestos and mesothelioma cases; an attempt to rip up Texas’s successful system of trying multidistrict litigation in a single court; and legislation to allow plaintiffs to sue for “phantom” medical expenses.

Republicans also got a helping hand from a number of brave, antilawsuit Democrats, many of them from South Texas, where litigation has exacted more of an economic toll.

Speaking of the economy, it’s notable that Texas created more new jobs last year than the other 49 states combined. Texas’s low tax burden is one reason. But also important is a fairer legal environment in which companies are less likely than they were a generation ago to face jackpot justice.