RESEARCH EDGE MACRO – THE RESEARCH EDGE – CALLS OF THE DAY

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…

 


Another French Revolution?

"Don't be complacent," writes Hedgeye Managing Director Neil Howe. "Tectonic shifts are underway in France. Is there the prospect of the new Sixth Republic? C'est vraiment possible."

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Cartoon of the Day: The Trend is Your Friend

"All of the key trending macro data suggests the U.S. economy is accelerating," Hedgeye CEO Keith McCullough says.

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A Sneak Peek At Hedgeye's 2017 GDP Estimates

Here's an inside look at our GDP estimates versus Wall Street consensus.

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Cartoon of the Day: Green Thumb

So far, 64 of 498 companies in the S&P 500 have reported aggregate sales and earnings growth of 6.1% and 16.8% respectively.

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Europe's Battles Against Apple, Google, Innovation & Jobs

"“I am very concerned the E.U. maintains a battle against the American giants while doing everything possible to sustain so-called national champions," writes economist Daniel Lacalle. "Attacking innovation doesn’t create jobs.”

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An Open Letter to Pandora Management...

"Please stop leaking information to the press," writes Hedgeye Internet & Media analyst Hesham Shaaban. "You are getting in your own way, and blowing up your shareholders in the process."

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A 'Toxic Cocktail' Brewing for A Best Idea Short

The first quarter earnings pre-announcement today is not the end of the story for Mednax (MD). Rising labor costs and slowing volume is a toxic cocktail...

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Energy Stocks: Time to Buy? Here's What You Need to Know

If you're heavily-invested in Energy stocks it's been a heck of a year. Energy is the worst-performing sector in the S&P 500 year-to-date and value investors are now hunting for bargains in the oil patch. Before you buy, here's what you need to know.

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McCullough: ‘My 1-Minute Summary of My Institutional Meetings in NYC Yesterday’

What are even some of the smartest investors in the world missing right now?

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Cartoon of the Day: Political Portfolio Positioning

Leave your politics out of your portfolio.

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Jim Rickards Answers the Hedgeye 21

Bestselling author Jim Rickards says if he could be any animal he’d be a T-Rex. He also loves bonds and hates equities. Check out all of his answers to the Hedgeye 21.

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Amazon's New 'Big Idea': Ignore It At Your Own Peril

"We all see another ‘big idea’ out of Amazon (or the press making one up) just about every day," writes Retail Sector Head Brian McGough. "But whatever you do, DON’T ignore this one!"

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