Sunday, May 24, 2009

Cerner Stock & White Health Health Czar Appointment

Cerner Corporation's stock rose over 50% in the last few months. The health information technology firm is in the sweet spot of President Obama's health care reform plans. Not only that, Cerner has an ex-board member as White House Health Czar. Nancy-Ann DeParle held 27,000 shares of stock, according to Cerner's 2008 DEF14A. Her holdings weren't listed in the 2009 document.

Some of these are options with a specific exercise price. Over 13,000 shares, priced in the mid-teens, have a 2011 expiration date.

Cerner Corp's current price is $56.52

Nancy-Ann's 13,300 in stock options are for $15.46

If she flipped them, Ms. DeParle would make $41.06 per share, or a total of $546,000

Sweet! What happened to Cerner's stock, since Nancy-Ann was named Obama's Health Care Czar?

March 2 $35.00

May 22 $56.52

Increase $21.52

Percent Increase 61.5%

More sweetness! How did your 401(k) or IRA do the last few months? Health care reform will have winners and losers. How might private equity underwriters and for-profit health care companies fare?