Who is one to believe? Yesterday I posted a recent press release from Coventry Health Care, Inc. which painted a cautiously optimistic picture of their current financial situation. My subsequent Internet search revealed another picture. One which suggests trouble.
What do I think? I believe that it is quite easy to develop a marketing plan that makes everything look rosy when it's not. Adveritising campaigns sell images. Selling images lies at the heart of business correspondence, especially to the news media and stockholders. Media badly wants to believe in the companies who pay lots of advertising dollars to them. Americans want to believe that all is well in a corporation to which they have invested much. The real picture may be far from that image.
The CEO of Coventry Health Care, Inc. is Dale B. Wolf. In the company's release Wolf speaks of disappointment and anticipation of "an acceptable EPS growth path for 2009 and beyond." What else would you expect Mr. Wolf to say at this moment? Would he tell you that his compensation package was over $32 million dollars in 2004? No. And I wouldn't want that fact mentioned at a time like this either.
But here's the catch: "Forward-looking statements are defined as statements that are not historical facts and include those statements relating to future events or future financial performance." I am not an anylyst but this statement appears to give Wolf and company wiggle room. There go those "appearances" again.
There are a few other persepctives. Just a few. It may be just chatter, but in the fairness of balancing the news I thought you might be interested in what others are saying about Coventry. Take it all in. Slowly. Ask questions. Demand answers.
Coventry Moat Check
http://www.freewebs.com/courageoffaith/Coventry%20Health%20Care%20Moat%20Check%20-%20Fat%20Pitch%20Financials.mht
"Coventry Stumbled Badly" http://www.freewebs.com/courageoffaith/Managed%20Care%20Matters%20Coventry%20Stumbled%20Badly.mht
Is Coventry in trouble? http://www.freewebs.com/courageoffaith/Is%20coventry%20in%20Trouble%20June%202008.doc
Coventry's Moat Difficult to Find
http://www.freewebs.com/courageoffaith/Coventry%20Health%20Care%27s%20Moat%20Difficult%20to%20Find%20-%20Seeking%20Alpha.mht
Coventry's press release ends as one would expect, describing its wide range of businesses. Some might say that's the problem. Too many acquisitions. Who knows?
The fact that people are posing the question "Is Coventry in Trouble" may be trouble enough for this darling of Wall Street.
As I write about the perks of a special elect - entitlements- in America people are suffering greatly from a variety of causes. Don't overlook the real possiblity that the same companies with dollars to spend for executive pay, may be the same companies who are shutting off insurance.
Why is this not criminal?
http://www.freewebs.com/courageoffaith/Bad%20Insurance%20TV%207%20Report%20%202008.mht
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