Red Acre Investments

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[Red Acre Investments @redacre]

What do Warren Buffet's most famous trade, Capitol One Fina cual $COF and Hyatt hotels $H have in common?

[Red Acre Investments @redacre]

$UNH confirmed in their ASM remarks that Q2 call would provide revised 2025 guidance and outlook for 2026.

We called this timing on 5/22. (See https://t.co/Qg7OM9xVlB)

There's one more key date coming up next week.

Get Ahead of the Curve.

[Red Acre Investments @redacre]

Quick primer on all 9 Situational plotlines: https://t.co/wBzwITxzp0

[Red Acre Investments @redacre]

Lots of negative media articles + rumors as well as real business concerns about higher than expected Medicare utilization.

[Red Acre Investments @redacre]

These 2 headlines are the clearingevents for taking $UNH out of the penalty box.

Full article: https://t.co/Qg7OM9xnw3

[Red Acre Investments @redacre]

The penalty box is just getting started at $UNH
Earnings miss + guidance revision -28%
Ceo "steps down" guidance pulled -18%
DOJ probe rumors -16%

[Red Acre Investments @redacre]

If the reason behind the selloff resolves favorably, the penalty ends. Investors buy the stock again, raising the price. The negative development can be company, industry, our country specific.. or it can be global. Same plotline applies.

[Red Acre Investments @redacre]

2020, Hyatt hotels $H ( and all travel stocks) enter the Penalty Box due to covid lockdowns. Recovery starts just *before* vaccine phase 3 results are announced.

[Red Acre Investments @redacre]

Months later Cornwall Capital buys $40 Leaps whole stock is stuck at $30. CFO stepping down signals the end of the Penalty period

[Red Acre Investments @redacre]

2002, capital one financial $COF sells off fro. $60 to $30 in 2 days when insider selling before regulatory concerns become apparent.

[Red Acre Investments @redacre]

By most accounts Buffet saw what everyone else missed. But it's the Penalty Box plotline

[Red Acre Investments @redacre]

Warren Buffett buys in the early part of 1964. In July, the courts cap liability at $60m and creditors quickly agree. That's when the stock begins recovery. (Penalty ends)

[Red Acre Investments @redacre]

November 1963. American Express $AXP subsidiary caught up I the Salad Oil Scandal. The stock got cut in half due to fears over size of liability

[Red Acre Investments @redacre]

Stocks of any size sell off and enter the Penalty Box when negative developments temporarily increase uncertainty.

[Red Acre Investments @redacre]

What do Warren Buffet's most famous trade, Capitol One Fina cual $COF and Hyatt hotels $H have in common?

[Red Acre Investments @redacre]

UnitedHealth $UNH is in the Penalty Box.. one of 9 situational market patterns (Profit Plotlines) that repeat against nd again.
Recognize the plotline and you can trade like you've seen the movie before... Let's walk through it.

[Red Acre Investments @redacre]

They all followed the same plotline. And it's playing out again right now.

[Red Acre Investments @redacre]

Some thoughts on $UNH from a situational perspective...
https://t.co/Qg7OM9xnw3

[Red Acre Investments @redacre]

Biotech/HC New or revisited 52-Week Highs: $ABC $ALKS $AMPH $AXSM $CAH $CTIC $LQDA $GBT $IMGN $ISRG $ITCI $LLY $MCK $MDXG $MSA $PDCO $VCEL

[Red Acre Investments @redacre]

Biotech/HC New or revisited 52-Week Lows: $BSTG $ENTA $HLTH $KPTI $NSTG $OMED $PETS $STXS $TRUP