Coventry Health Care, Inc. (CVH)

[Justin]

Coventry Health Care, Inc. is a national managed healthcare company based in Bethesda, Maryland, operating health plans, insurance companies, network rental/managed care services companies, and workers' compensation services companies. Coventry has two operating segments: Health Plans and First Health. The Company provides a full range of risk and fee-based managed care products and services, including health maintenance organization (HMO), preferred provider organizations (PPO), point-of-service (POS) products, Medicare Advantage, Medicare Prescription Drug Plans, Medicaid, Workers' Compensation and Network Rental to a cross section of individuals, employer and government-funded groups, government agencies, and other insurance carriers and administrators in all 50 states, as well as the District of Columbia and Puerto Rico.

[fatpitchfinancials]

You might be interested in my recent post regarding Coventry Health Care. You can read it at Coventry Health Care Moat Check - Fat Pitch Financials

[jkruer01]

CVH

MOS: $19.17
Current Price: $54.75

[bovverd]

I think this one has been discussed previously on here. Very slightly over MOS, The Fast Scholastic has already crossed, the MACD is on the trigger line and the 10 day MA looks like its about to cross.

[show me the money]

bovverd--did you do your own math or use the stock2own math? When I figured it manually with my own math, I got very different results:

ROIC 13.2% and 19.2% BVPS=31.55%, EPS=40.76%, Sales=22.68%, Cash Flow=50.54%, Historical PE=13.8, Earnings Est=13.8

Sticker Price= 43.69
MOS=21.85
Current=59.30

I think stock2own math uses a future EPS of 31.25% (I'm not sure how it reaches that figure) but I think that number is too high. The analyst earnings est. is 13.8. Phil's book says to use the lesser of the 2. Also, I don't know where stock2own gets the future PE of 14.4 info? The historical PE is 13.8 which brings the MOS down even more to 19.22. Where do you find the future PE?

[bovverd]

Originally Posted by show me the money

bovverd--did you do your own math or use the stock2own math? When I figured it manually with my own math, I got very different results:

ROIC 13.2% and 19.2% BVPS=31.55%, EPS=40.76%, Sales=22.68%, Cash Flow=50.54%, Historical PE=13.8, Earnings Est=13.8

Sticker Price= 43.69
MOS=21.85
Current=59.30

I think stock2own math uses a future EPS of 31.25% (I'm not sure how it reaches that figure) but I think that number is too high. The analyst earnings est. is 13.8. Phil's book says to use the lesser of the 2. Also, I don't know where stock2own gets the future PE of 14.4 info? The historical PE is 13.8 which brings the MOS down even more to 19.22. Where do you find the future PE?

I used Stock2own and was under the impression their calculations were on the conservatice side. I'll have a look at it.

[npg]

Originally Posted by bovverd

I used Stock2own and was under the impression their calculations were on the conservatice side. I'll have a look at it.

Never ever rely on the output of such websites or other people's work. Always do your own calculus.

The lazy will not be rewarded.