Davita (DVA) soared more than 6% today, making it our hot stock.
Shares of Davita gained 6.3% to$58.62 after the company quantified the impact of changes to the way some Medicaid patients seeking dialysisare treated under the ACA. The S&P 500 barely moved today.
Wells Fargo’s Gary Liebermanexplains why investors reacted so positively to the news:
DaVita (DVA, rated Outperform) announced today that its total operating income (EBIT) risk to patients receiving assistance for Affordable Care Act (ACA) plans both on and of the exchange is $230 million. If we assume that the DaVita loses the entire $230 million and apply at 10x EBITDA multiple to it that would imply a total impact to its share price of about $11. We note that shares of DaVita are off about $23 since concern about this issue began in July. The $230 million is consistent with the high end of our calculated risk of $233 million in our 9/29/2016 note. Of the $230 million of risk only $140 million of it will be impacted based on actions DaVita plans to take beginning immediately. It is unclear if Centers for Medicare and Medicaid Services (CMS) will take action that will impact the remaining $90 million. DaVita disclosed that it has about 2,000 Medicaid patients currently receiving premium assistance; we believe that most of those patients are receiving coverage off the exchanges and will likely lose coverage ($140 million of impact). DaVita disclosed that it has about 1,500 non-Medicaid patients receiving premium assistance; we believe that most of those patients are receiving coverage on the exchanges and may not lose coverage unless CMS takes action ($90 million of impact). We estimate that DaVita comprises no more than 2,500 of the 6,400 patients that the American Kidney Fund (AKF) indicated it was providing assistance for as of 12/31/2015. It would appear that DaVita’s patients receiving assistance from the AKF for exchange plans is approximately consistent with its market share. We believe a major investor concern was that DaVita’s share was significantly more than its 32% market share.
investment risk: Visa Inc.(V)
- [By WWW.GURUFOCUS.COM]
For the details of Night Owl Capital Management, LLC’s stock buys and sells, go to www.gurufocus.com/StockBuy.php?GuruName=Night+Owl+Capital+Management%2C+LLC
These are the top 5 holdings of Night Owl Capital Management, LLCVisa Inc (V) – 231,674 shares, 10.84% of the total portfolio. Shares reduced by 5.42%Mastercard Inc (MA) – 167,458 shares, 9.92% of the total portfolio. Shares reduced by 5.37%Alphabet Inc (GOOG) – 18,613 shares, 8.13% of the total portfolio. Shares reduced by 4.05%Amazon.com Inc (AMZN) – 15,674 shares, 7.32% of the total portfolio. Shares reduced by 3.17%The Priceline Group Inc (PCLN) – 6,970 shares,
- [By Chris Lange]
Visa Inc. (NYSE: V) reported fiscal second-quarter financial results after markets closed on Thursday. The company said that it had $0.86 in earnings per share (EPS) and $4.5 billionin revenue, versus consensus estimates from Thomson Reuters that called for $0.79 in EPS and $4.31 billion in revenue. The same period from last year had $0.68 in EPS and $3.63 billion in revenue.
- [By Elizabeth Balboa]
Dozens of others spent more than $1 million, including Ally Financial Inc (NYSE: ALLY), Visa Inc (NYSE: V) and Navient Corp (NASDAQ: NAVI).
investment risk: MDU Resources Group, Inc.(MDU)
- [By Lisa Levin]
In trading on Monday, utilities shares fell by 1.08 percent. Meanwhile, top losers in the sector included South Jersey Industries Inc (NYSE: SJI), down 4 percent, and MDU Resources Group Inc (NYSE: MDU), down 4 percent.
investment risk: Bank of Hawaii Corporation(BOH)
- [By Monica Gerson]
Bank of Hawaii Corporation (NYSE: BOH) is expected to report its quarterly earnings at $0.99 per share on revenue of $149.88 million.
Zions Bancorporation (NASDAQ: ZION) is projected to post its quarterly earnings at $0.39 per share on revenue of $576.49 million.
investment risk: Paylocity Holding Corporation(PCTY)
- [By Peter Graham]
A long term performance chart shows shares of Box Inc underperforming potential small cap peers such asPaycom Software Inc (NYSE: PAYC), Paylocity Holding Corp (NASDAQ: PCTY) and TriNet Group Inc (NYSE: TNET)which also debuted around the same time:
- [By Peter Graham]
A long term performance chart shows shares of Box Inc underperforming potential mid cap peer Paycom Software Inc (NYSE: PAYC)and small cap peers Paylocity Holding Corp (NASDAQ: PCTY) and TriNet Group Inc (NYSE: TNET)whichall had their IPOs around the same time:
- [By Peter Graham]
A long term performance chart shows shares of Box Inc underperforming potential mid cap peer Paycom Software Inc (NYSE: PAYC)and small cap peers Paylocity Holding Corp (NASDAQ: PCTY) and TriNet Group Inc (NYSE: TNET)whichall had IPOs around the same time:
investment risk: Qualstar Corporation(QBAK)
- [By Lisa Levin]
Qualstar Corporation (NASDAQ: QBAK) was down, falling around 16 percent to $6.99. Qualstar reported a Q4 loss of $0.20 per share on revenue of $2.2 million.
- [By Lisa Levin] Related CRMD Mid-Day Market Update: U.S. Stocks Turn Negative; AveXis Shares Spike Higher 12 Biggest Mid-Day Gainers For Tuesday CorMedix's (CRMD) CEO Khoso Baluch on Q4 2016 Results – Earnings Call Transcript (Seeking Alpha)
Related BIOA Mid-Day Market Update: U.S. Stocks Turn Negative; AveXis Shares Spike Higher Mid-Morning Market Update: Markets Edge Higher; Tiffany Earnings Top Estimates BioAmber (BIOA) Q4 2016 Results – Earnings Call Transcript (Seeking Alpha)
CorMedix Inc. (NYSE: CRMD) shares fell 27.5 percent to $1.50 after the company reported Q4 results and issued a business update.
Bioamber Inc (NYSE: BIOA) shares tumbled 23.6 percent to $2.40. BioAmber reported FY16 adjusted loss of $1.07 per share on revenue of $8.3 million.
The Medicines Company (NASDAQ: MDCO) shares dipped 20.9 percent to $41.62.
Innocoll Holdings PLC (NASDAQ: INNL) shares fell 20.3 percent to $1.49. Innocoll posted a narrower-than-expected quarter loss, but revenue missed estimates. Stifel Nicolaus downgraded Innocoll from Buy to Hold.
Rosetta Genomics Ltd. (USA) (NASDAQ: ROSG) shares declined 20.3 percent to $3.83. On Thursday, Rosetta Genomics disclosed a 1-for-12 reverse stock split.
Esperion Therapeutics Inc (NASDAQ: ESPR) shares dropped 19.9 percent to $23.76. Esperion Therapeutics shares have jumped 106.19 percent over the past 52 weeks, while the S&P 500 index has gained 16.70 percent in the same period.
AmTrust Financial Services Inc (NASDAQ: AFSI) tumbled 18.3 percent to $17.65. AmTrust Financial disclosed that it will delay its annual report filing for the fiscal year ended December 31, 2016.
Qualstar Corporation (NASDAQ: QBAK) slipped 17.7 percent to $6.85. Qualstar reported a Q4 loss of $0.20 per share on revenue of $2.2 milli
- [By Jim Robertson]
On Tuesday, our Under the Radar Moversnewsletter suggestedshorting small cap data storage systems stock Qualstar Corporation (NASDAQ: QBAK):
Quelstar is essentially a mirror image of Pixelworks. That is, it’s not just the bearish undertow we want to tap into here. It’s the failure of QBAK to follow-through on today’s effort to break above the 100-day moving average line with today’s early effort. The market dared the bulls to play their hand, and as it turns out, they were bluffing. The sheer scope of the reversal bar in the meantime today confirms the downtrend.
- [By Jim Robertson]
On Thursday, our Under the Radar Moversnewsletter suggestedpreemptively shorting small cap data storage systems stockQualstar Corporation (NASDAQ: QBAK):