Diamonds and Dogs
DaVita Medical (DVA) making smart moves. DaVita Inc. will sell its underperforming managed-care group to Optum in a $4.9 billion deal that will allow the Denver-based kidney-care provider to reinvest in its core businesses and pursue new investments in other areas of health care. DaVita's managed-care unit generated 30% of their sales, did was not making money and purchase price was over 50% of the DaVita's market cap. DaVita will use the $4.9 billion to reinvest in its core businesses and pursue new investments in other areas of health care.
Profit-taking in Home Depot (HD). The largest home improvement store chain is down a percent after reaffirming 2018 earnings. I guess investors were expected a bump to earnings estimates. The stock is not cheap trading for 24 times next years' earnings, but Home Depot did announced a $15 billion share buyback on Wednesday and targeted annual sales of up to $120 billion over the course of the next three years as it accelerates investment in stores, employees and deliveries.
Diamonds and Dogs market commentary is a journal of daily observations on anything that happens to be of interest to our author. Obviously, our primary focus is the stock market and world economic events, but for this page we have no defined topics. We want this page to be dedicated to the interests, concerns, and possibly to the financial gain of our clients and friends. All comments contained herein are for informational purposes only, and should not be considered as a solicitation to buy or sell any security. The firm does not guarantee the accuracy or completeness of the information or make any warranties regarding results from it's usage.