Room to raise the ceiling: management says its own prices, rates, or terms sit below what the market would currently bea
The model's full reasoning — Q2 2018 call → NOWe need answer only YES or NO. Need analyze transcript. Need determine if management conveys undercharging and closing gap. Let's inspect. Transcript: Fresenius Medical Care Q2 2018. Topics: Calcimimetics transition, pricing, PAMA, etc. Need find management own words about pricing below value and raising. Search for pricing comments. Mike Brosnan: "Lower revenue per treatment from commercial payers. High implicit price concessions which as you know is the new term under IFRS 15 for what you anticipate you collect with regard to your billing arrangements on the services side of the business. The implementation of the PAMA oral-only or the Calcimimetics. A small cost increase in property and other occupancy costs and these were partly offset by lower cost for healthcare supplies." That's not undercharging. Calcimimetics: moving from Part D to Part B, pharmacy to clinics. They mention titration, medical decision. Not pricing gap. Question about Medicare rate proposal: Rice says proposed increase 1.7%, "little disappointed that we didn't talk more about it" maybe not. Question about capitated rates MA: Rice says "there is going to be a lot of time and room for discussion on how we structure this. I don't think there is a well-established play book at this particular moment in time as to where this is going to go" Not. Question about bundled rate rebase: Lisa asks about CMS rate proposal, lower drug costs factored in. Rice says "we think you're looking at the way we do similarly" and "I pushed it out a couple years and I typically said, more is got to happen, i.e. Retocris got to come, some other things need to come. If we're really going to affect this to a point that there needs to be a big rebase" This is about Medicare reimbursement rates, not company pricing. Question about cardiovascular reimbursement: Mike says "not seeing any significant change over the reimbursement rates. It's more associated with the ASE conversions and the timing associated with getting the approvals from the state inspectors on those and the rates we're seeing in the national - the NCP side of the business" Not. Question about cost per treatment: Mike says "reduced medical supply cost that are offsetting some of our property increase and alike and I'd say balanced labor cost." Not. Question about Asia Pac: no.
| Ticker | Company | Call | Date | Call grade |
|---|---|---|---|---|
| MEC | Mayville Engineering Company, Inc. | Q3 2022 | 2022-11-05 | B+ |
| CAG | Conagra Brands, Inc. | Q2 2017 | 2016-12-22 | C+ |
| SOHO | Sotherly Hotels Inc. | Q3 2016 | 2016-11-08 | D |
| RCL | Royal Caribbean Cruises Ltd. | Q1 2016 | 2016-04-29 | C+ |
| HPP | Hudson Pacific Properties, Inc. | Q4 2015 | 2016-02-25 | C |
HPP · Q4 2015 → YESThe question is: Does management convey that the company is currently charging LESS for what it sells than the market would presently bear — that its own prices, rates, fees, or terms sit meaningfully...YES The transcript shows management explicitly describing a gap between its current charges and what the market now supports, then confirming that the company is already closing it through mark-to-market resets and higher new/renewal rents. Victor Coleman states that the company has “rolled out 80% plus mark to market” on recent leases 2.5 years old, and that cash rent spreads on 1.6 million square feet executed since the acquisition were “north of 30%” with “20%, 25% mark-to-market for 2016 and 2017.
MEC · Q3 2022 → YESThe question is: Does management convey that the company is currently charging LESS for what it sells than the market would presently bear — that its own prices sit meaningfully below the value custom...YES Management explicitly states that they have taken pricing actions in 2022 and have "more room for margin expansion through continued value pricing even beyond the pricing actions taken during 2022." This conveys that their current prices sit below what the market would support, and they are actively beginning to close that gap with further value pricing.
SOHO · Q3 2016 → YESThe question is: Does management convey that the company is currently charging LESS for what it sells than the market would presently bear — that its own prices, rates, fees, or terms sit meaningfully...YES The transcript shows management explicitly identifying a rate gap at the Laurel hotel (and similar situations at other properties) where current charges sit below the competitive set/market, while describing active steps already underway to close that gap through continued ramp-up and occupancy/rate improvements.