Author Topic: DVA DaVita HealthCare Partners  (Read 202437 times)



buylowersellhigh

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Re: DVA DaVita HealthCare Partners
« Reply #41 on: March 23, 2015, 12:40:49 PM »
Anybody know the reason behind DVA's latest move from $72 to $83?


Homestead31

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Re: DVA DaVita HealthCare Partners
« Reply #42 on: July 13, 2015, 08:09:54 PM »
the last move higher from $72-83 appears to be tied to the filing that Weschler bought more in Q4'14

anyone else taking a look at this?  EV/ FY '14 FCF (on a maintenance capex basis) is 20x, and PE/ FY '14 FCF (maintenance capex basis) is ~14x...  still a long runway for growth, albeit slower than in the past, and room for operational improvement at HCP as they figure that business out.  you know capital allocation will be top notch, and revenues are defensive (absent gov't interference of course)...  i am gravitating toward ideas like this these days - it may be a form of market timing, but i'd rather be in defensive businesses with excellent capital allocators that can still grow given how i feel about the world and markets in general.  something like this won't double over night, but it can prob do 10-15% a year, which is fine by me, and it should survive any crash better than more cyclical / leveraged companies.

any recent thoughts?

orthopa

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Re: DVA DaVita HealthCare Partners
« Reply #43 on: January 08, 2016, 05:41:58 PM »
Starting to look interesting again down here near a 52 week low.

twacowfca

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Re: DVA DaVita HealthCare Partners
« Reply #44 on: January 08, 2016, 08:52:20 PM »
Starting to look interesting again down here near a 52 week low.

Has Weschler bought any more stock recently?

thefatbaboon

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Re: DVA DaVita HealthCare Partners
« Reply #45 on: January 09, 2016, 06:58:06 AM »
No

sleepydragon

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Re: DVA DaVita HealthCare Partners
« Reply #46 on: January 11, 2016, 09:20:17 AM »
I bought DVA today. It seems cheap to me.
Trading around 10x pre tax earning.
Very high roe, even higher if u just look at the tangible equity.
The debt is a little high but they have interest rate caps in place.
Company bought back 400m stocks last year.
If Ted can trust so many of his own wealth in this stock, i think i will be fine putting in 10%.

Also, why everybody is so sure this is not a web purchase? I think it may very well be. There is an interview on cnbc where Web talked about health costs, and that he thinks reforms are needed for the health delivery system where low cost providers shall be incentivized. He definitely understand the sector very well. There would be a little conflict of interests for Ted to buy DVA for Berkshire, but not so if Web is buying it. So i think there's a good chance it's a Web holding.

Happy

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Re: DVA DaVita HealthCare Partners
« Reply #47 on: January 12, 2016, 06:13:07 AM »
Also, why everybody is so sure this is not a web purchase? I think it may very well be. There is an interview on cnbc where Web talked about health costs, and that he thinks reforms are needed for the health delivery system where low cost providers shall be incentivized. He definitely understand the sector very well. There would be a little conflict of interests for Ted to buy DVA for Berkshire, but not so if Web is buying it. So i think there's a good chance it's a Web holding.

Weschler has owned DaVita in his hedge fund for over 10 years prior to joining BRK and bought it for BRK shortly after getting hired. And in the last year there was an interview where Weschler was asked why he likes DaVita in particular. They also have confirmed that it is Weschler's holding and not Buffett's.

rogermunibond

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Re: DVA DaVita HealthCare Partners
« Reply #48 on: March 11, 2016, 10:17:20 AM »
Pretty big news this week in the NEJM on unmatched/HLA incompatible kidney transplant.  Likely won't eat into DVA's dialysis business for a while but something to be aware of if you are a long-term investor in DVA.

http://www.nejm.org/doi/full/10.1056/NEJMoa1508380

Larry

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Re: DVA DaVita HealthCare Partners
« Reply #49 on: September 02, 2016, 08:12:57 AM »
DVA has come down about 20% from previous highs, probably due to an investigation launched to see if dialysis firms are steering patients. I think this one has become quite interesting again. Current market cap is 13.42B and their operating cash flow for the last 12 months is 2.061B. FCF is 6.05 per share and the stock sells currently for 64.87.

I like the overall characteristics of the dialysis side, very steady, stable and recession proof and it creates a lot of cash flow. Surely you can debate whether this is ethical or not but Im not going to that discussion here. The HCP acquisition has been a mistake in hindsight and it has not performed well. This was also quite a large deal, I guess this has also put pressure to share price. I think they should stick to dialysis in the first place, as it is what they do best and probably get rid of HCP. There is not as much m&a possibilities in dialysis as before and I believe they have slowed down from previous years in opening new clinics. I think they should just repuchase shares with excess cash flow. But we will see what happens with HCP, dialysis side is still performing very well.

Anyone else following this?