Good afternoon, we apologize for the delayed release of this morning's note; we had technical difficulties in its release. Tomorrow, we will return to the normal distribution time. If you have questions or anything else on your mind, email and we'll get back to you ASAP.
KEY CALL OUT
HCA non-COVID occupancy continues to run at the upper end of the range in recent weeks. We expected to see a bit more upside and a break to new highs, but so far so good. Meanwhile, the estimate momentum trend across Health Care is looking increasingly stable as we approach 2Q22 earnings. Peak compares on labor costs and volume hit in April and will stay tough through June, and begin to ease in July and August. Much of the negative performance in Health Care is more closely tied to factors as there has been little on the fundamental side that differentiates good stocks from bad. The factors that should work in Quad 4 are high quartile enterprise value and margins and low quartile short interest, mainly. If Non-COVIC occupancy at HCA and nationally, 2Q22 earnings and 3Q22 guidance should be fine and the broader estimate momentum trend (below) should pick up, and take prices with it.
JOLTS reported at 10AM and we received the downtick that we expected. We believe this will be read positively for HCA and providers as it reflects easing labor cost pressure, and negative for AMN and CCRN for the same reason, although the magnitude will matter to the size of the price reaction.
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NEWS & TRanscripts
ILMN Illumina drops as rival startup wins $600M VC funding "Our architecture is intended for radical scaling, and the $100 genome is merely the first example of what it can deliver." A new entrant where others have failed to make inroads against the incumbent advantage ILMN enjoys in the research space. Accuracy will be key to adoption as other contenders have discovered.
ATIP There are a flurry of transcripts on Stream AlphaSense site suggesting culture can be fixed, but was deeply damaged under prior management well ahead of COVID.
"That meeting in Orlando, there was so much. People were really just anxious because of the changes. This is prior to COVID. There are so many people that were like, "This is not for me." The meeting fell flat. It was a gigantic meeting of all the clinic directors and a lot of people in operations as well, also on the sales side or business development growth team. The people that have been there for many years, I think the consistent thing is it's an uneasy feeling."
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Have a great day out there!
Thomas Tobin
Managing Director
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William McMahon
Associate
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*Please note, not all Position Monitor names make it into the MicroQuad output - most likely due to a lack of sufficient historical trading and estimate data.
