Zacks Analyst Blog Highlights: United Healthcare Group, Aetna, Wet Seal Inc., VeriSign Inc. and Syniverse Holdings Inc.
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CHICAGO--(Business Wire)--
Zacks.com announces the list of stocks featured in the Analyst Blog. Every day
the Zacks Equity Research analysts discuss the latest news and events impacting
stocks and the financial markets. Stocks recently featured in the blog include:
United Healthcare Group (NYSE: UNH), Aetna (NYSE: AET), Wet Seal Inc. (Nasdaq:
WTSLA), VeriSign Inc. (Nasdaq: VRSN) and Syniverse Holdings Inc. (NYSE: SVR).
Get the most recent insight from Zacks Equity Research with the free Profit from
the Pros newsletter: http://at.zacks.com/?id=4579
Here are highlights from Wednesday`sAnalyst Blog:
CBO Overstates Healthcare Costs
Some of the more outrageous types of misconduct by the likes of United
Healthcare Group (NYSE: UNH) and Aetna (NYSE: AET) might be curbed, such as the
cancelling of policies as soon as someone gets sick and puts in a substantial
claim. Morally, that is just plain fraud ("You didn't tell us that you went to
see a dermatologist for your acne when you were 16, so we will not cover your
cancer treatment at age 55"), although the insurance companies have very good
lawyers who write the contracts to make sure they can get away with it.
It might even end the practice of discriminating against sick people (aka
pre-existing conditions). It will come at the expense of using the force of law
to get the young and the healthy to buy coverage. Since the young, on average,
seldom make expensive claims, those customers would be a gold mine for the
insurance companies.
None of those things are likely to stop the relentless rise in Health Care costs
as a share of GDP. The nation may go bankrupt, but the health insurance
companies will not. They will be even more prosperous than they are today. Their
investment in people like Sen. Max Baucus (D-MT) and Kent Conrad (D-ND) has to
go down as one of the most profitable in history.
Wet Seal Reports Modest Results
Wet Seal Inc. (Nasdaq: WTSLA) reported modest results for the second quarter
with earnings of 3 cents per share, which was in-line with the Zacks Consensus
Estimate. However, earnings were down 9 cents year-over-year. Wet Seal is a
specialty retailer, operating apparel and accessory items stores for female
customers in the U.S.
Net sales for the quarter declined 8.5% year-over-year to $136.4 million.
However, Internet sales grew 12.7% year-over-year. Overall comparable same-store
sales declined 10.6%. Comparable same-store sales in the Wet Seal segment
declined 11.9%, and at the Arden B segment it declined 4.1% year-over-year.
VeriSign Divests Messaging Biz
VeriSign Inc. (Nasdaq: VRSN) yesterday agreed to sell its messaging business to
Syniverse Holdings Inc. (NYSE: SVR) for $175 million. The transaction is subject
to certain closing conditions and regulatory approvals.
Headquartered in Mountain View, California, VeriSign provides essential Internet
infrastructure services to companies, service providers and website owners.
Tampa, Florida-based Syniverse provides wireless voice and data services for
telecommunications companies worldwide. The company said that the deal will
expand its mobile messaging capabilities and increase its global footprint
through nearly 300 additional employees in the United States and Asia Pacific.
The messaging business has had an annual revenue run-rate of approximately $140
million over the last 12 months. With this divestiture, VeriSign will be left
with only one of its thirteen businesses to divest. From November 2007 to date,
the company has sold twelve non-core units for $750 million. The business which
remains to be sold is Global Security Consulting.
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Copyright Business Wire 2009
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