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Category: Nancy Levant
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Published on Sunday, 01 September 2013 21:30
Health Care “Exchanges”: Stock Exchange Profits for the Sickness Industrial Complex
Health Care “Exchanges”: Stock Exchange Profits for the Sickness Industrial Complex
Why Obama personally (yeah, right) decided to create health care “exchanges” for his federally enforced health insurance is 1) quite an interesting research project, and 2) proof that the “mandatory” component of enforcing very limited healthcare ensures corporate profits to skyrocket in the sickness industrial complex. Let’s begin from the beginning, which happens to be in Belgium, the home of the global governance, where euthanasia was legalized in 2002 for mentally competent adults over 18, and who is now planning to extend it to children younger than 18 (autism) and also for adults who are diagnosed as mentally competent with Alzheimer’s disease or other forms of “dementia”. This same Belgium also happens to be the founder of “exchanges”.
Quoting from Wikipedia (a better source of facts, by the way, than most major media):
“An exchange (or bourse) is a highly organized market where (especially) tradable securities, commodities, foreign exchange, futures, and options contracts are sold and bought. The term bourse is derived from the 13th-century inn named Ter Beurze in Bruges, Belgium, where traders and foreign merchants from across Europe conducted business in the late medieval period. The building, which was established by Robert van der Buerze as a hostelry, had operated from 1285. Its managers became famous for offering judicious financial advice to the traders and merchants who frequented the building. This service became known as the “Beurze Purse” which is the basis of bourse, meaning an organised place of exchange. Eventually the building became solely a place for trading in commodities. During the 18th century, the façade of the Ter Beurze was rebuilt with a wide frontage of pilasters. However, in 1947 it was restored to its original medieval appearance. In the twelfth century, foreign exchange dealers in France were responsible for controlling and regulating the debts of agricultural communities on behalf of banks. This is actually the first brokers. They met on the Grand Bridge in Paris, the current Pont au Change. It just takes its name from the forex brokers. In the thirteenth century, the Lombard bankers are the first to share state claims in Pisa, Genoa and Florence. In 1409, the phenomenon was institutionalized by the creation of the Exchange Bruges. It was quickly followed by others, in Flanders and neighboring countries (Ghent and Amsterdam). It is still in Belgium and the first building designed to house a scholarship was built in Antwerp.
“Exchanges bring together brokers and dealers who buy and sell these objects. These various financial instruments can typically be sold either through the exchange, typically with the benefit of a clearinghouse to cover defaults, or over-the-counter (OTC), where there is typically less protection against counter-party risk from clearinghouses,[1] although OTC clearinghouses have become more common over the years, with regulators placing pressure on the OTC markets to clear and display trades openly.[2][3]
Exchanges can be subdivided:
By objects sold:
Stock exchange or securities exchange
Commodities exchange
Foreign exchange market – is rare today in the form of a specialized institution
By type of trade:
Classical exchange – for spot trades
Futures exchange or futures and options exchange – for derivatives
In practice, futures exchanges are usually commodity exchanges, i.e., all derivatives, including financial derivatives, are usually traded at commodity exchanges. This has historical reasons: the first exchanges were stock exchanges. In the 19th century, exchanges were opened to trade forward contracts on commodities. Exchange-traded forward contracts are called futures contracts. These “commodity exchanges” later started offering future contracts on other products, such as interest rates and shares, as well as options contracts; now they are generally known as futures exchanges”.
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http://en.wikipedia.org/wiki/Exchange_%28organized_market%29 Your “health” under Obamacare has become a commodity, a futures contract, an options contract or a futures “exchange”. In reality, your ill-health greatly benefits the sickness industrial complex stock “exchanges”.
In a November 8, 2012 article by Nigam Arora titled “26 ways to profit from Obamacare”, the author states:
“Obama has been re-elected; “Obamacare” is the law of the land. It doesn’t matter if you agree or disagree with Obamacare, you might as well generate big profits from it.
“Obamacare has been profitable for us. We bought Amerigroup Corp. at $22.05, and, as of this writing, the stock is at $91.44 — this is a whopping 315% return.
“It wasn’t long ago when we aggressively bought Tenet Healthcare THC -1.31% at $20.40. Yesterday THC hit a 52-week high of $27.60.
“Here are 26 ways to profit from both the long and the short side.
“Hospital stocks
“The best way to profit on the long side from Obamacare is to buy hospital stocks as utilization rates will increase and uncollected receivables will go down.
“Under Obamacare, the pool of paying patients will increase. It is estimated that currently about 30 million Americans are uninsured. The increase in the number of paying patients will be huge.
“By law, hospitals have to serve all patients who show up at their emergency rooms including indigents as well as those with no insurance. Hospitals also have difficulty collecting from low income Americans who may have no insurance or are underinsured. Some hospitals aren’t able to collect as much as 30% of their billings.
“The earnings of some hospitals may increase by as much as 25%.
“Our favorite stock in this sector is THC. Other hospital stocks on our list buy are Community Health Systems CYH -2.58% , HCA Holdings HCA -1.45% , LifePoint Hospitals LPNT -1.95% , and Universal Health Services UHS -2.12% .
“Medicaid HMOs
These HMOs focus on Medicaid and other government programs and will be big beneficiaries of Obamacare.
“We own AGP but it is not suitable for those not in the stock. AGP is being bought by WellPoint WLP -0.37% .
“Other names on our buy list are Centene Corp. CNC -1.89% , Molina Healthcare MOH -2.54%, and WellCare Health Plans WCG -1.76% .
“Medicare Part D
“Medicare Part D is a private plan which provides prescription drug coverage for those eligible for Medicare. Government payments received by insurance companies for this program are likely to see reductions.
“Humana HUM -1.19% is our top pick to short sell, but we will wait for this stock to meet all of our six screens before acting.
“Branded pharmaceuticals
“In the long run, branded pharmaceuticals will be hurt. Obama will be under intense pressure to reduce rising health care costs in Medicaid and Medicare. Branded drugs are a sitting duck simply because Big Pharma sells them for far less abroad than in the United States.
“Large-cap pharmaceutical stocks are in favor these days. The market participants perceive them as safe. The reasoning goes that people will always be using drugs irrespective of what happens in Europe, China or to the U.S. economy.
“It doesn’t hurt that these stocks also pay high dividends. Buying high dividend stocks is the rage. However Bush tax cuts expire at the end of this year; if there is no compromise in Washington, income-tax rate on dividends will jump and high dividend stocks will give up some of their recent gains.
“Secret to making money by short selling is to sell short stocks that are popular and whose fundamentals are likely to deteriorate. We are short Market Vectors Pharmaceutical ETF PPH -0.51% .
“We have recently taken profits on Lilly LLY -0.10% , but we plan to short it again.
“Two other stocks to short on our list are Merck MRK +0.40% and Pfizer PFE +0.39% .
“Generic pharmaceuticals
“In the short run, Obamacare is positive for generic pharmaceutical companies such as Teva TEVA +0.10% , Mylan MYL 0.00% , and Dr. Reddy’s Labs RDY -0.69% . In the long run, these companies will suffer as there will be intense pressure on the prices they can charge. There is an opportunity here on the long side in the medium term, but it will become a short opportunity in due course.
“Medical devices
“Obamacare levies a tax on medical devices. Further pressure on medical device companies such as Medtronic MDT -0.15% , Stryker SYK -0.03% , St. Jude Medical STJ -0.38% , and Zimmer Holdings ZMH +0.29% to reduce prices will increase. .
“We plan to short sell these companies when they meet our six screens.
“Testing laboratories
“There will be more medical tests as more patients are insured. In the short run, implementation of Obamacare is positive for testing companies such as Quest Diagnostics DGX +1.14% and Laboratory Corp. of America LH -0.17% .
“In the long run, Obamacare is very negative for these companies because they will come under heavy pressure to reduce rates. These are some of the best ways to profit from the short side in the long-term.
“Drug distributors
“As more pharmaceuticals are used, the ruling is positive for drug distributors such as McKesson MCK -0.12% , Cardinal Health CAH 0.00% , and AmerisourceBergen ABC-0.40%.
Obamacare will prove to be a gold mine for astute traders and investors on the long side and the short side. The key to making money will be the timing of entries and exits using a proven method such as ZYX Change Method. If you cannot short, consider the inverse ETF RXD +1.23% .”
“Disclosure: Subscribers to The Arora Report are long THC, AGP and RXD, and short PPH; further we plan to initiate positions in the names in this column as they meet our six screens.”
http://www.marketwatch.com/story/26-ways-to-profit-from-obamacare-2012-11-08 In the same way that wars boost profits to Raytheon, Lockheed Martin, General Dynamics, Boeing, Northrup Grumman, etc., your birth-to-death sickness boosts profits in sickness commodities, futures, options, and exchanges, the very same exchanges that you are forced to identify yourselves as “future” commodities and exchanges.
Equally real is that the U.S. with its assisted suicide laws now legalized in four states also follows step with Belgium’s assisted suicide laws, which are now providing the sickness industrial complex with rapidly evolving human euthanasia laws. Guaranteed, in the very near future, health, pharmaceutical and insurance corporations will be lobbying hard and fast for euthanasia laws in order to avoid the cost of actual health care; stockholders first, human health a non-issue and with rapid exits from life demanded.
Yeah…change is great, particularly for power investors, corporations and billionaires corporate owners. Enjoy your “health” care, the care that is not going to happen…except for the rich, of course who will pay in cash. Also, remember that your federal government exempted itself from Obamacare. There is a reason for that: there is no actual health care.
