DaVita Inc. (DVA)

The drop was beacuase a hospital in Ohio wants to pay on Medicare scale, which is way lower than regular standard for a whole host of ailments, not just Kidney Care. DVA sued the hospital claiming that hospital took that action against the ADA (KIDNEY) patients exclusively. It went to the Supreme Court. In a 7-2 decision against DVA. Justice Robert's wrote a dissertation saying that it not the Supreme Courts job to regulate the medical payment schedule as in amounts and so forth, but it is actually Congress's job to regulate. Justice Sotomayor wrote the dissenting piece saying pretty much ADA patients need greater protection. Now stocks over all were rallying like crazy broad based and a lot of people panicked and sold on this news. In my opinion a 15 plus % drop in one day was way too much over Rachel in selling. DVA still can get congressional action via their extensive lobby platform. The naysayers here say that the action of the Ohio hospital will be far reaching in the industry. It's not done over night. DVA should and will get a more favorable regulated payment platform as the government will act as not to foot the total bill. Medicare would be crushed if this goes wide spread. The government is very stupid but not suicidal. Remember this is just my own opinion good luck to all.

Just on CNBC Jim Chanos(sp?) shorting DVA for Years and questions Berkshire being involved - they still have 24%.

A couple comments. Berkshire doesn't ALWAYS make the best moves. Look at the first time that I know of that they bought a Company with another investor(who is slash n loot) from Brazil with Kraft Heinz. You can see what a mis-step that was.

And actually it was Warren's 2 new hires that both had bought DVA that they had to file 10% ownership not long after they had started.

Now DVA is at 24% and I believe have a standstill agreement. Which is why I questioned DVA announced a significant buyback not long ago which would increase Berkshire's % ad if that would cause any issues.

I am long DVA(common and I had sold some common and bought deep in the money calls that are now up 59%.

It will be interesting to hear why it is shorted. We already know that all profits come from the little sliver of private pay for Davita and Frenesius.

Capital intensive but a necessary service. And since to me it has a lot of characteristics of a Utility I have always thought they should have a dividend.

Let the games begin. I have made decent money trading DVA over Years. Virtually all the common and calls I own are with the House's money.

I had wanted this to be one of my 4 largest holdings but it just can't seem to get there!

2 folks with WAY more money and information that I will lever have. Time to grab the popcorn and decide if there is an opportunity to make money here.
And I have been long BRKB's for a very long time. Although I sold a bunch when their split was announced and shortly after that split.

Chenos to be on CNBC shortly but I have to leave so I won't see it.