Diamonds and Dogs

6/25/15

Tenet Healthcare (THC)

Tenet Healthcare is our diamond of the day, as the stock is gaining over 12% on the day after some big news about the Affordable Care Act. The Supreme Court ruled that the federal government could continue issuing subsidies to Americans through Obamacare. Even though it was controversial, the decision will end up benefiting the care provider. Tenet Healthcare's patients will have an easier time paying for their care now, and perhaps this will grow the business in the long term.

Methode Electronics (MEI)

Today, Methode Electronics lost nearly 30% of its value on heavy trading. The diversified electronics company's guidance was below analysts' estimates for the fiscal year of 2016. On top of that, the company's revenue was below estimates for the quarter. However, the CEO still believes that EBITDA for 2016 will grow at a compound annual rate of 9%-10%, making investors wonder if this is possibly just a speed bump for future growth.