Email – #413

Tenet Healthcare (NYSE: THC) reported numbers this week. They came in much better than expected. What does this mean for our position? We are well in-the-money on this one and it looks like we are also well on our way to notching our first quadruple-percentage winner this year. The turnaround continues to gain traction with increases in just about every metric.

Our bank holdings are holding up well in light of the continued gyrations in the financial markets. While it would have been easy to take profits several times in the past month on days when we have had strong rallies, I am more inclined to wait to the bigger moves that I think will happen in the second half of this year. I am not looking for 10% or 30% gains from our positions like Fifth Third Bancorp (Nasdaq: FITB), but the doubles or triples that are on the horizon when the smoke clears.

Coeur D’Alene (NYSE: CDE) reported a strong exploration season today. With silver and gold prices gaining momentum, we are well positioned to take advantage of further rallies.

A further note on Mylan (NYSE: MYL). The company also reported a couple of divestitures including the sale of one drug’s right to Forest Labs for almost $400 million. Along with the expected synergies from the Merck deal, which are conservatively worth several hundred million dollars in the next year alone, we could see much better numbers in the quarters to come on a year-over-year comparison.

Mylan’s shares are extremely undervalued at current levels and with such low expectations built in by the market, it would not take much positive news going forward to give us a real pop in this position.

Karim