United Health Group Inc. (UNH)

[Justin]

UnitedHealth Group Incorporated (UnitedHealth Group) is a diversified health and well-being company, serving approximately 65 million Americans. The Company provides individuals with access to healthcare services and resources through more than 500,000 physicians and other care providers and 4,600 hospitals across the United States. UnitedHealth Group conducts its operations through four operating divisions: Uniprise, Health Care Services, Specialized Care Services (SCS) and Ingenix. On December 20, 2005, the Company acquired PacifiCare Health Systems, Inc. PacifiCare offers managed care and other health insurance products to employer groups, individuals and Medicare beneficiaries, with approximately 3.1 million health plan members, including 2.4 million commercial members and 750,000 senior members, and approximately 12 million specialty plan members nationwide.

[npg]

Justin's chart gives better figures than the ADVFN excel tool. Nevertheless, there seems to be an increasing amount of dept. Although the figures look high, they are not excactly disproportionate to current free cash flow.

How can I find out why this debt occurs?

[npg]

Since UHN is on my watchlist....

I don't know if any of you are following the drama unfolding. There always were serious concerns about it's management. In fact, it was a major factor for not getting into this company.

Now, the senate is launching an investigation wrt CEO compensation, the CEO has to leave because of the backdating scandal and it looks like other key figures are also implicated.

Indeed, bad news. But it only confirms what guys like morningstar have been saying about the management.

I would expect the stock to tank further. In fact, this could create a lovely opportunity investing in a company which in essence has a sound business.

The key factor for a buy is going to be what unfolds in the boardroom. Is UNH going to clean up it's act? Who will replace the implicated fat cats?

Positive outcome in management restructure + low price = R1 investment opportunity here!

Fire away! Would love to hear you guys have a take on this.

PS: The price hasn't been reached yet.

[bmoore]

Nothing much to say about UHC, but I really liked reading your take. Nice work on the fundamentals.

[npg]

I'm enjoying UNH's ride down south :) Aaah I love it when the knifes come out. This company can be a great recession proof aquisition once it reaches the right price.

PS: I don't agree with the P/E on the MSN spreadsheet. It is far too low for a 16% grower. I'd advise anyone interested in that one to try different P/E ratios for their calculations. Something like 20 or 22 is more appropriate IMO.

Also, they will have to re-state their figures. Apparently the adjustment is 'considerable' (they have to adjust for all that 'considerable' cream the cat's got). So the figures may or may not be so good any longer.

We shall see...

If the stock goes below the 43.5 support then we are in for more blood. Next stop is 41.44. After that we are very very very close to a sensible MOS.

35.60 - 36.00 is a MOS buy flat out me reckons.

Any takers?

[ingo]

Maybe the results of the election could influence the earnings of the company. What do think? Maybe we have a cut in medicare and other costs?

[Lois]

The following information was something I found titled "Who's Making What in Health Care" The Irving Levin Health Care Executive Compensation Report dated 2003.

With the disgrace of 2001‘s ten-million-dollar-man Richard Scrushy and the disappearance from the radar of Healthsouth, 2002‘s most highly compensated executive was Dr. William McGuire, CEO of UnitedHealth Group, at $7,659,403.

Is anybody worth this kind of money?????!!!!!

[janet23]

Ask a Baseball, football, basketball, well you get the jist of it player..They all think they are worth it!!!!. The price given the size of the business doesn't seem that obscure to me....These are prices in todays world!!!!! Personally I find it hard to fathom as well but I sure wish I had taken another Path

[Magg1e]

but when you hear over and over , that there is never enough money for health care - and certainly no money for children's health care - well hey - we just happened to have a spare $7 million lying around - and he deserves it for doing such a good job of squeezing his policy holders

[catdishy]

Today's Reuters BusinessNews reports the outgoing CEO is being blocked from exercising his options while UNH undergoes a review into options-related lawsuits filed against the company.