• It's Coming...

    MARKET EDGES

    Identify global risks and opportunities with essential macro intel using Hedgeye’s Market Edges.

TECHNOLOGY: PEROT’S PIROUETTE WITH DELL…

By Rebecca Runkle and Team

“It’s choice -- not chance -- that determines your destiny” Jean Nidetch

I always find it worthwhile to take a fresh look at change after a (hopefully decent) night’s sleep.  My head is clearer and less biased with my knee-jerk reaction and I am better able to digest the situation with a rational mindset.  This morning my mind is filled with Dell’s proposed acquisition of Perot for $3.9 billion.  Taking all things into consideration, this will prove a decidedly strategic and positive deal for Dell.  See Rebecca Runkle’s portal for more details.

 

TODAY’S TRADE - Runkle was one of the first in 09' to be bullish on DELL, and after CS downgraded it, she's the first to defend this Perot deal (see her note for details). Buying red!

HEALTHCARE: Doctors Behaving Badly 

By Tom Tobin and Team

President Obama keeps talking about ways to fix "runaway healthcare costs" without talking about the way Medicare pays for services.

The payment process has avoided scrutiny throughout the Health "Insurance" Reform debate. Payment Reform should be well ahead on President Obama's to-do list than banter with David Letterman.  The debate is still not changing, although 500 amendments to the Baucus proposal would suggest an intense interest in getting something done despite the political stalemate.  I see lawmakers staking out a new sphere of political influence rather than dealing with Obama's 8 core principals and it’s not dissimilar to watching the specialist dominated AMA (70% of its membership) write the reimbursement codes which Medicare uses to pay physicians for services (self-dealing).  Check out the links below for a more thorough discussion of why this is a bigger problem than mandates and taxes on Cadillac health plans.

We are long the XLV and AMGN, QGEN and UNH are our favorite names in Healthcare.

See Tom Tobin’s portal for more details. 

 

 

RETAIL – RETAIL FIRST LOOK: MARK YOUR (IPO) CALENDARS 

By Brian McGough and Team

While Dollar General’s impending IPO is likely one of the largest and most visible IPO’s on the calendar, it is worth noting that there are a handful of other apparel/retail companies lined up to go public in the coming months. For now, the list is as global as we’ve seen in a long time, but we suspect many U.S. private equity firms will be watching closely to see how these offerings fare as they too contemplate monetizing some of their “peak-market” acquisitions.  See Brian McGough portal for more of the details …  

UA continues to be our favorite long-term names…