Saturday, April 13, 2019

Weekly: Disney plus, Lyft, UNH

It was a tough Friday for me, as I cover positions in sold Disney calls, Lyft puts, UNH. DIS went up, LYFT and UNH went down and all were bad for me.

UNH was down after presidential candidate Bernie Sanders outlined his healthcare plan. A third of the high profile Democrats for president support similar plans. The chances of Medicare for all, or similar passing in 2020 are remote. However, in ten years, I’d give it at least 30% chance. The legislation poses an existential threat to UNH and a host of other companies.

One analogy is to buying coal stocks in 2000. At the time, the coal lobby was strong. By 2012 when Obama ran for reelection, most coal stocks were down 90% off their highs. Similar can happen to UNH.

With the rough Friday, I eek a tiny gain for the week. So a cup half empty kind of week, positive, but could have been a lot better.

No comments: