Quorum Health Corp (QHC) Bounces on Appaloosa Vote of Confidence

Quorum Health Corp (QHC) surged after an Appaloosa stake, but has a long ways to go before closing last week's bear gap

Aug 15, 2016 at 4:59 PM
facebook X logo linkedin


As markets soared to another record-setting session, Quorum Health Corp (NYSE:QHC) flew high on news that David Tepper's Appaloosa Management -- which dissolved its position in this tech stock -- took a 2.6% stake in the hospital chain. Specifically, QHC surged 15.3% to close at $5.89 -- and has now recovered almost 43% since hitting an earnings-induced all-time low of $4.12 last Thursday.

The Appaloosa vote of confidence -- which technically occurred in the second quarter, prior to QHC's drop -- is relatively rare for QHC, with 100% of analysts rating QHC a "hold" or worse. In fact, Mizuho last night lowered its price target on QHC to $5.75 from $8.50. Plus,while short interest dropped 21.9% over the previous two reporting periods, it would still take 7.8 days to cover the remaining 1.2 million shorted shares, at QHC's average daily volume.

That skepticism isn't too surprising, though, considering the Quorum Health Corp's (NYSE:QHC) performance. After going public in April, the Community Health Systems (NYSE:CYH) spin-off bounced along support in the $9-$10 region until last week's big-time bear gap, which cut the equity's value in half.

Sign up now for Schaeffer's Market Recap to get all the day's big stock movers, must-know technical levels, and top economic stories straight to your inbox.

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI