Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Aetna ( aet) -- Ignore unavailable to you. Want to Upgrade?

To: Terry Maynard who wrote (83)	2/8/2000 11:22:00 PM
From: blankmind	Read Replies (1) \| Respond to of 110

Per 2/8/00's earnings release for 4Q99: - another $500 mill or so of stock buyback to go; 10 mill shs bought back in the past year - about 146 mill shs o/s - $1.18/sh in earnings - still digesting the Prudential HealthCare purchase - AET closed at $46 after finishing yesterday at $56, which is a huge drop for results that don't look too bad.

To: Terry Maynard who wrote (83)	2/11/2000 10:24:00 PM
From: Logain Ablar	Read Replies (1) \| Respond to of 110

TM: It looks like a value now - why is the market punishing it? Let me count the ways. 1) Poor leadership. 2) Poor management. 3) Ingrained culture. 4) Lost creditability with the street - again. 5) High costs. They sold the PC business 4 years ago, the life business two years ago and they still occupy the same space in Hartford. 6) Buracratic. The company's market value today is less than 50% of what they paid for US healthcare 4 years ago and the Pru operations. It would be easy to maximize value and get this stock over $100. 1) Sell the international business. Maybe get $500M afit. 2) Spin off the financial services operations (not sell off, the shareholders would be screwed again). Potential worth of 5 billion. 3) Sell the headquarters (best bet would be to donate it to Hartford). 4) Leaves the Healthcare operations with dual headquarters in Middletown, CT and Bluebell PA. Worth 5 to 8 billion. Current management will not do this. Culture is still to ingrained. The glory days are over for this company. Although it is a value play at these levels. Unfortunately I've seen value plays become even better value plays. If it hits $30 I'd be a buyer. Two more shoes to drop. 1) The healthcare leglislation (although this may be priced into the stock) 2) Repricing of options. Senior management (and many of the good hardworking employees) have a lot of options that are worthless unless the stock gets to high 80's (and they won't take the actions that would put them out of work to get the stock to that level). Tim