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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (31364)	7/4/2008 2:05:38 AM
From: Spekulatius	Read Replies (3) \| Respond to of 78742

UNH - Health insurers (e.g. UNH) downgraded: "Health insurers tumble after analyst issues dire note" Uugh. this stock really cost me. I made at least 3 mistakes and i can trace it back to breaking my trading/investing rules Rule #1. When unexpected bad news hits sell. Don't ask questions and try to be smart about the exit point, just sell. this rule applies to unexpected turns in business performance, things that get put into 10Q/10k filings and it applies more to large caps than small caps. The reason: you are not the only one that want's out but as a small investor you can get out before the large institutions that hold millions of shares get out. use your advantage and wait for the carnage to unfold before getting in. The bad news hit with WLP first but later UNH was hit as well. There were certain exit points that I did not use once the bad news kept coming. the stock continued to trickle down more. Even worse I switched some funds from WLP to UNH to harvest tax losses with WLP (assuming recovery of the sector). this made matters worse. The last exit point was when UNH revised earnings, which first did not sound to bad but when analyst took the numbers apart the selling pressure continued. What to do know. I sold my highest cost shares today. I also sold my highest cost shares in RYCEY (Rolls Royce) as well and used the proceeds to buy something else - BWP another pipeline MLP, more about that later.

To: Paul Senior who wrote (31364)	7/26/2008 4:33:12 PM
From: Paul Senior	Respond to of 78742

UNH. Discussed today in Barron's in Omega Advisors interview. Quoting Leon Cooperman, "...If you buy things at the right price, that's half the game; we don't need sex appeal. UnitedHealth is generating a 12% free-cash-flow yield, and they've bought back a lot of stock. They generate tremendous amounts of free cash flow. It sells at half the market multiple and, over time, you are probably looking at maybe 1% growth in employment, with 5% health-care inflation. So you have the top line growing 6%. We think the bottom line will grow 8% to 10%. These guys could afford to buy back 8%-10% of their company annually. As far as ranking these companies, I would start with UnitedHealth, followed by WellPoint and Aetna." Among other stocks mentioned favorably there were a couple I like as well: Corning and Transocean. ================================== Barron's also has a feature article with a generally favorable view for the prospects of Maxim Integrated. finance.yahoo.com I'm still holding my losing position in that one: Message 24273555