Accentuating the caveat emptor perspective with critical commentary on financial disclosure. I adopt a skeptical persona and look for chinks in the teflon coating of financial disclosure. My job is to identify financial warts. Perhaps a Black Swan. Disclosure: I do not hold positions in stocks mentioned for three trading days before or after blog post.
Wednesday, May 03, 2006
UnitedHealth Group Suspect Judgment
The shareholder revolt may have succeeded in forcing some governance changes. Much like the keystone cops chasing the get-a-way perhaps a deterrent has been established. Mr McGuire was quoted by Reuters as saying that they should have moved sooner to make the changes. The comment is rich given that Mr.McGuire was the prime beneficiary of the suspect compensation program. The board's judgment is suspect. The stock is trading close to its 52 week lows. Will this stock reward shareholders or just a select few option holders. What other errors in judgment are embedded? My prediction is a rough ride. Classaction lawsuit if there was ever one.