The Zacks Analyst Blog Highlights:UnitedHealth Group, Cablevision Systems, Viacom, DIRECTV and Time Warner Cable
CHICAGO, Feb. 28, 2013 /PRNewswire via COMTEX/ --
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 UnitedHealth Group Inc. (NYSE:UNH), Cablevision Systems Corporation (NYSE:CVC), Viacom Inc. (Nasdaq:VIAB), DIRECTV (Nasdaq:DTV) and Time Warner Cable Inc. (NYSE:TWC).
Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/ id=5513
Here are highlights from Wednesday's Analyst Blog:
UnitedHealth Expands Internationally
In an effort to expand its international business UnitedHealthcare International, a unit of U.S. health insurer UnitedHealth Group Inc. (NYSE:UNH) has announced a global health insurance program called Global Solutions.
The program will be available for all the employers, small as well as big, based internationally.
UnitedHealth has tied up with MAXIMA Insurance, Inc., to provide its international health insurance service in the Czech Republic. In this region the company will be targeting all the expatriates which are mandated to hold a medical coverage as per the immigration rules of the country.
The insurer has also tied up with Medical Services Organisation in South Africa to provide cashless claim service. UnitedHealth will be providing its service to more than 30 countries in the African continent.
Yet another instance of UnitedHealth expanding its international operation was its buyout of Amil Participações S.A. of Brazil.
It is the long term strategy of the company to expand its international operations which provide a healthy margin. The roll out of this new program marks a strategic move by UnitedHealth, indicating aggressive international expansion at a time when growth in the domestic markets is facing pressures from the new regulations. Over time we expect more deals from the company, pertaining to its international expansion where it faces less competition.
UnitedHealthcare International has business operations in 123 countries across the globe.
Cablevision Brings Viacom to Court
Cablevision Systems Corporation (NYSE:CVC) recently filed an antitrust law suit against media giant Viacom Inc. (Nasdaq:VIAB) for forcing the former to take up bundled TV channels, inclusive of less popular networks like CMT, MTV Hits, Nick Jr, Nicktoons, Palladia and VH1 Classic. The case is under wraps and not available for public viewing.
With respect to the litigation, Viacom believes that these Pay-TV operators actually gain from such deals as they get more channels at low cost.
At the end of last year, Cablevision and Viacom entered into a long-term agreement, under which the former will carry Viacom's network for an undisclosed amount. However, we believe that mounting programming costs and failure to strike a better bargain with Viacom has forced Cablevision to file such litigation against the media giant.
Generally, most media companies follow the similar business pattern of bundling their low rated channels with other popular channels, hence inflating the channel package rates.
Such harmful practices have not only increased programming expenses of cable and satellite TV operators but at the same time, have also affected margins in a big way. Moreover, the numbers of channel blackouts have also increased over the last year, resulting from disagreement between media partners and cable and satellite operators.
Last year, DIRECTV (Nasdaq:DTV) - the largest satellite TV operator in the U.S - failed to renew its contract with Viacom as the former was demanding a huge hike in fees, which resulted in blackout of channels for nine days. Finally, DIRECTV resumed its channel service by renewing the contract at a 20% higher rate.
Likewise, in 2012, higher demand for fees had forced Time Warner Cable Inc. (NYSE:TWC) to drop Ovation network while Dish Network Corp. too dropped AMC Network channels from their popular program lists.
So we believe that such serious allegation brought by Cablevision may raise big questions over the business model followed by the media companies.
Currently, Cablevision has a Zacks Rank #4 (Sell).
Want more from Zacks Equity Research Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/ id=5515.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/ id=5517
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leon Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/ id=5518.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748 ref=ts
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
Zacks Investment Research
800-767-3771 ext. 9339
SOURCE Zacks Investment Research, Inc.
[ Satellite Spotlight's Homepage ]