Is My Nose Bleeding? I Just Got “Einhorned”: CIGNA Corporation (CI), Ventas, Inc. (VTR), Herbalife Ltd. (HLF)

Page 1 of 2

“I could tell that my parents hated me. My bath toys were a toaster and a radio.” – Rodney Dangerfield

My name will never be used as a verb. First off, it’s much too difficult for most people to even attempt to pronounce. Looking at it, do you Americanize it? Do you go old school French-Canadian? What’s the proper tense? I’m at peace with it. Believe me, it’s quite alright.

October of last year, Greenlight Capital President and founder, David Einhorn presented his stock findings with a slick, well thought out PowerPoint display, cool music, but no fog machines. The Wall Street wizard offered some light fare prior to naming names, even joking about his own being utilized as a verb when referencing certain stocks. “Herbalife Ltd. (NYSE:HLF) got Einhorned,” which actually sounds like it could leave a nasty scar, what with the “horn” delicately placed within his surname.

Herbalife Ltd. (NYSE:HLF)One of the stock mentions I found rather interesting from the Fonz of hedge fund managers, was CIGNA Corporation (NYSE:CI), which probably covered most of those who signed the Declaration of Independence.  To be unflinchingly honest, I never gave the company a second look until it was mentioned rather favorably by Einhorn. In light of the Supreme Court upholding the Affordable Care Act, everyone had some opinion on the healthcare sector, even yours truly.

I mentioned Ventas, Inc. (NYSE:VTR), prior to Einhorn’s stock laser show, and being a meat-eating, red-blooded, all-American male; I thought it would be a rather fun endeavor to embark on my own little fantasy stock steel cage match, since the timing was so fresh with our mentions. Also being a man of my word, I announced to my faithful following (all 15 of you), that I would keep everyone posted on this most public, potentially embarrassing stage, our own unforgiving Internet. Following a respectable showing in 2012 (up 16%), Ventas is already steadily moving ahead year-to-date, up about 2%. About a dollar under their 52-week high ($54-$68), I think the performance will continue the slow grind upward this year and beyond, breaking through the $68 ceiling a few times along the way. As I mentioned when I accepted my own challenge, Ventas clobbers Cigna when it comes to the trusty dividend, doling out 62-cents per share each quarter ($2.48 annually), for a healthy 3.7% yield. Compared to Cigna’s anemic, 0.1% dividend yield, paid in the form of 4 shiny pennies once a year for each loyally held share of stock, Ventas wins that battle.

Cigna had a very nice run in 2012, with the stock picking up over 23% in gains (almost 20% since Einhorn’s mention, though), and currently rides that momentum into 2013, up over 6% year-to-date. The company is nipping at the heels of their 52-week high ($39-$59), and will most likely pierce that number this year, but I expect it to gradually slow down, especially if Einhorn looks elsewhere for more substantial gains.

Page 1 of 2
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Top 10 Highest Paying Jobs in the World

Most Expensive Day-Care in New York City

The 10 Cheapest Places to Retire Abroad

Top 10 Most Expensive Luxury Cars in the World – 2014

Killer Small Business Ideas

The 50 Best Personal Finance Blogs

Most Expensive Apartments in New York City

Bloodiest UFC Fights Ever Fought

Most Expensive Rum Brands in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!