4D·

Optum Health / Largest employer in the USA

If the Justice Department, FTC and other government agencies were to break up United Healthcare, shareholders would get Optum Health, the nation's largest physician group.

Healthcare is the largest employer in the U.S, $UNH (+2.15%) itself one of the largest employers with over 400,000 employees.

So I would have relatively little to worry about here, you may just need a little patience ✌️

Too big to fail ? 🤔

BamBamInvest

@BamBamInvest

4D·

UnitedHealth complies with formal criminal and civil requests from the US Department of Justice

$UNH (+2.15%)

UnitedHealth Group $UNH (+2.15%) says it is complying with civil and criminal inquiries from the Department of Justice related to its Medicare activities. The company said it proactively reached out after media reports surfaced and remains confident in its practices. UNH has also initiated an independent review of its coding, managed care and pharmacy policies to increase transparency. A timeline for the Department of Justice review has not yet been determined.

Whatever the reason for the sell-off, this actually creates transparency and thought this was already initiated/known.

https://www.sec.gov/Archives/edgar/data/731766/000073176625000224/unh-20250723.htm

8 Comments

John@JKdivi2020

I have struck again at 238,60€ ✌️

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BamBamInvest@BamBamInvest

@JKdivi2020 💪 Tuesday will be exciting

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Katharine@Derkatz

I don't have a good feeling about #UNH. The willingness to answer the Ministry of Justice's questions in detail looks like a "flight to the front", in which they speculate, also due to their size, on getting away with two black eyes.
For me, the place is kind of fishy. It's not the first time they've been confronted with accusations of fraud and lack of transparency. Then there are the savings in the healthcare system. It will take years for UNH to recover halfway, if at all. As I am invested myself, I hope to be proven wrong of course😉

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BamBamInvest@BamBamInvest

@Derkatz I don't think it will take years, the transparency in particular is trying to force a quick solution here so that this doesn't take years and so that the investigations here don't take forever in order to be able to continue working freely afterwards. the health insurers will raise premiums more next year and compensate for this. We will be back on track in two years at the latest, and I think we will already see higher prices at the end of the year. A correction in the tech sector could lead to an inflow of capital into this sector and to a sector rotation, as things have already gone down very excessively here and every piece of news is being reheated. It remains exciting, we will see. ✌️

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Katharine@Derkatz

@BamBamInvest I can't really share your optimism, but I would be very happy if you are right 😀

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BamBamInvest@BamBamInvest

@Derkatz If you look at the valuations and the exaggerated reaction to the downside, more capital will flow into the healthcare sector, ETFs, etc. if there is more volatility. Tiles and at some point the exaggeration of the move down is there. We now have daily earnings from competitors such as <security:n/a:US60855R1005> (yesterday) $CNC (today) and it feels like there is always a setback for the same reason. Another reason is that there is a lot of capital flowing into tech companies due to the ATH. This will turn at some point and wait and see when the big hedge funds report their positions, there may also be euphoria if many buy $UNH as has already become apparent. Of course there may be further headwinds, but in my opinion a penalty or fine would even be liberating for $UNH because the issue would then be off the table and predictable. ✌️ just be patient, the American healthcare system will not change and $UNH may even benefit from it as the share of the state Medicaid/Medicare program is relatively low and thus more flows into the private sector. Yes, I am optimistic, but situations like this are also opportunities. Sure, you can be too early, but when it turns, it usually turns quickly.

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Katharine@Derkatz

@BamBamInvest In a sector comparison, UNH is still expensive in terms of valuation.
The valuation in terms of earnings and book value is rather high compared to the industry, while the valuation based on sales and growth appears moderate to favorable, which is why hedge funds currently see UNH as a buying opportunity. A premium heavyweight as a bargain . The base case includes 5% sales growth over 5 years; if this is not achieved, the share price will fall.

Quite apart from the headwind from the DOJ investigation, the outcome of which is completely uncertain and the allegations of abuse could still lead to a considerable loss of reputation, there are still a number of challenges that UNH has to deal with, such as falling profits in percentage terms and falling net margins, political and regulatory uncertainties, the loss of subsidies, budget cuts and, not to forget, the cost explosion in the US healthcare system, etc. And whether the current management can cope with this.
And it remains to be seen whether the current management is up to the task.

It will be a long and rocky road to recovery.

As I said, I hope that I am completely wrong with my assessment in the best-case scenario. But I'm already toying with the idea of taking the opportunity to follow the whole thing from the sidelines as soon as I can get out +|- zero. 🙃

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Dividendenopi👴@Dividendenopi

I got out at 471 in December when there were signs that Kennedy was going to go down. I was annoyed that I didn't take higher profits earlier. Compared to the current price..... sad and also a shame what has become of $UNH. But they are slowly becoming interesting from a dividend yield perspective 😉😇. Joking aside, hot stock at the moment with the potential for surprises in both directions, I'm staying on the sidelines

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