Author Topic: DVA DaVita HealthCare Partners  (Read 215702 times)

ValueMaven

  • Sr. Member
  • ****
  • Posts: 379
Re: DVA DaVita HealthCare Partners
« Reply #350 on: November 08, 2017, 05:05:44 PM »
I started a position in DVA this afternoon...

Sincerely,
VM


sleepydragon

  • Hero Member
  • *****
  • Posts: 772
Re: DVA DaVita HealthCare Partners
« Reply #351 on: November 08, 2017, 06:43:03 PM »
I started a position in DVA this afternoon...

Sincerely,
VM

what JPM says about DVA?  :P

whiterose

  • Jr. Member
  • **
  • Posts: 92
Re: DVA DaVita HealthCare Partners
« Reply #352 on: November 22, 2017, 10:27:37 PM »
DaVita explores sale of physician network business:

Quote
DaVita Inc (DVA.N), the largest U.S. provider of kidney care services, is exploring a sale of its physician network business, DaVita Medical Group, that could value the unit at up to $4 billion, according to people familiar with the matter.

https://www.reuters.com/article/us-davita-m-a-davita-medical-group-exclu/exclusive-davita-explores-sale-of-physician-network-business-sources-idUSKBN1DM2PB

rb

  • Hero Member
  • *****
  • Posts: 3146
Re: DVA DaVita HealthCare Partners
« Reply #353 on: November 22, 2017, 10:41:26 PM »
DaVita explores sale of physician network business:

Quote
DaVita Inc (DVA.N), the largest U.S. provider of kidney care services, is exploring a sale of its physician network business, DaVita Medical Group, that could value the unit at up to $4 billion, according to people familiar with the matter.

https://www.reuters.com/article/us-davita-m-a-davita-medical-group-exclu/exclusive-davita-explores-sale-of-physician-network-business-sources-idUSKBN1DM2PB

Ooohh! That's not good.

Txvestor

  • Sr. Member
  • ****
  • Posts: 308
Re: DVA DaVita HealthCare Partners
« Reply #354 on: November 23, 2017, 02:46:21 AM »
Actually if they get a decent price, which they could from a strategic buyer like a large medicare advantage insurer, this could turn out to be a good decision for them albeit an admission of a prior failed strategy.
They have had a miserable time of running it, and obviously they're not produsing anything close to the returns they initially projected. In addition I am sure it has taken up a disproportionate share of management's time and attention, and appears nowhere close to a turnaround. If DVA were to sell this off and use the proceeds to do a share buyback it could be incredibly accretive.
Having a near duopoly scale advantage position in the hemodialysis market with yet more roll up and organic growth opportunity remaining is not exactly a bad/business place to be in. They can then return their focus to their core competency and the stock price will respond.
« Last Edit: November 23, 2017, 02:50:11 AM by Txvestor »

bennycx

  • Full Member
  • ***
  • Posts: 162
Re: DVA DaVita HealthCare Partners
« Reply #355 on: November 23, 2017, 03:21:13 AM »
Question: why is everyone talking about Davita and not Fresenius? Is it just because Ted W has bought it?

MrB

  • Lifetime Member
  • Hero Member
  • *****
  • Posts: 1145
Re: DVA DaVita HealthCare Partners
« Reply #356 on: November 23, 2017, 06:01:14 AM »
Actually if they get a decent price, which they could from a strategic buyer like a large medicare advantage insurer, this could turn out to be a good decision for them albeit an admission of a prior failed strategy.
They have had a miserable time of running it, and obviously they're not produsing anything close to the returns they initially projected. In addition I am sure it has taken up a disproportionate share of management's time and attention, and appears nowhere close to a turnaround. If DVA were to sell this off and use the proceeds to do a share buyback it could be incredibly accretive.
Having a near duopoly scale advantage position in the hemodialysis market with yet more roll up and organic growth opportunity remaining is not exactly a bad/business place to be in. They can then return their focus to their core competency and the stock price will respond.

Question is how much does one fault them for buying it in the first place? Probably was not the worst idea at the time, because managing patients more effectively does seem to be a good solution due to the complexity and how it relates to outcomes. Also reasonable time frame to realise you made a mistake, sell it and move on. Therefore good theory, but if you cannot make it work then move on.

Selling it and buying back more of your stock sits better with me than throwing more money at it.



MrB

  • Lifetime Member
  • Hero Member
  • *****
  • Posts: 1145
Re: DVA DaVita HealthCare Partners
« Reply #357 on: November 23, 2017, 06:14:04 AM »
Question: why is everyone talking about Davita and not Fresenius? Is it just because Ted W has bought it?
Ted actually owned both and in a meaningful way over the years.
Speaking for myself, Davita is more of a pure play on "dialysis services" and has a higher probability of meaningful share buybacks over the next 4 years (around $5Bn), which is meaningful considering $10.6Bn market cap. Lastly meaningful difference in valuation, which again need to be considered in light of the difference in ROE & ROC. 


MrB

  • Lifetime Member
  • Hero Member
  • *****
  • Posts: 1145
Re: DVA DaVita HealthCare Partners
« Reply #358 on: November 23, 2017, 06:42:08 AM »
DaVita explores sale of physician network business:

Quote
DaVita Inc (DVA.N), the largest U.S. provider of kidney care services, is exploring a sale of its physician network business, DaVita Medical Group, that could value the unit at up to $4 billion, according to people familiar with the matter.

https://www.reuters.com/article/us-davita-m-a-davita-medical-group-exclu/exclusive-davita-explores-sale-of-physician-network-business-sources-idUSKBN1DM2PB

Happy Thanksgiving Jim...

ValueMaven

  • Sr. Member
  • ****
  • Posts: 379
Re: DVA DaVita HealthCare Partners
« Reply #359 on: November 23, 2017, 08:07:13 AM »
If they really got $4bn for it - it would be a huge homerun.  Either way the stock is dirt cheap