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Anyone play Wellcare(wcg) since the raid?
- Thread starter bigpig41
- Start date
No pullback, got a follow through news pump at 2:20
ast update: 1/14/2008 2:20:02 PM
By Russ Britt
Shares of WellCare Health Plans Inc. (WCG) rose nearly 13% Monday on news that the health insurer would win some federal contract awards, reassuring investors that recent law-enforcement probes likely would not hamper its ability to capture government business.
WellCare stock recently rose 12.7%, or $5.95, to $52.89 after the insurer said it received a number of contract renewals from the Centers for Medicare and Medicaid Services for several states, including Connecticut, Georgia, Florida, Illinois and Louisiana. The company disclosed the new contracts in a Securities and Exchange Commission filing after trading closed on Friday.
The additions are expected to give the company roughly 11,000 more members, a sharp reversal from the 5,000-member decline that was expected. WellCare also received approval to expand its membership base, just a few months after the Tampa company became the subject of a state and federal probe over potential Medicare and Medicaid fraud.
"Given that if anyone would be privy to any available information with regard to the current investigations of the company it would be (Centers for Medicare and Medicaid Services), we view the latest contract renewals and market expansions as highly supportive," Jefferies & Co. analyst Brian Wright said in a note to clients.
It was in October that officials from the Federal Bureau of Investigation, U.S. Health and Human Services Department and the Florida Attorney General's office raided WellCare headquarters. State officials were from the Attorney General's Medicaid fraud-control unit.
Investors and analysts were concerned that WellCare might face prosecution for Medicare fraud. The raid and subsequent investigation sent WellCare shares plummeting more than $100 within the span of one week, an 84% drop to $20.81 from a high of $128.42. WellCare's stock has been climbing back since then.
-Russ Britt; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
January 14, 2008 14:20 ET (19:20
ast update: 1/14/2008 2:20:02 PM
By Russ Britt
Shares of WellCare Health Plans Inc. (WCG) rose nearly 13% Monday on news that the health insurer would win some federal contract awards, reassuring investors that recent law-enforcement probes likely would not hamper its ability to capture government business.
WellCare stock recently rose 12.7%, or $5.95, to $52.89 after the insurer said it received a number of contract renewals from the Centers for Medicare and Medicaid Services for several states, including Connecticut, Georgia, Florida, Illinois and Louisiana. The company disclosed the new contracts in a Securities and Exchange Commission filing after trading closed on Friday.
The additions are expected to give the company roughly 11,000 more members, a sharp reversal from the 5,000-member decline that was expected. WellCare also received approval to expand its membership base, just a few months after the Tampa company became the subject of a state and federal probe over potential Medicare and Medicaid fraud.
"Given that if anyone would be privy to any available information with regard to the current investigations of the company it would be (Centers for Medicare and Medicaid Services), we view the latest contract renewals and market expansions as highly supportive," Jefferies & Co. analyst Brian Wright said in a note to clients.
It was in October that officials from the Federal Bureau of Investigation, U.S. Health and Human Services Department and the Florida Attorney General's office raided WellCare headquarters. State officials were from the Attorney General's Medicaid fraud-control unit.
Investors and analysts were concerned that WellCare might face prosecution for Medicare fraud. The raid and subsequent investigation sent WellCare shares plummeting more than $100 within the span of one week, an 84% drop to $20.81 from a high of $128.42. WellCare's stock has been climbing back since then.
-Russ Britt; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
January 14, 2008 14:20 ET (19:20
took a 30 share position in and holding overnight. here comes the reaper
As soon as I got home I saw that WCG had gone up to the moon so I bought some right before the close.Quote from bigpig41:
did you wait to the end of the day to buy!
Barring any SPECTACULAR PUBLIC EVENT overnight it should gap up some in the AM
I'm gonna blow out my account in a week, LOL. But yeah, it appears to be doing OK AH but that can change in an instant. Usually it's a stupid stupid stupid idea to buy at the end of a day-long rally. Here's where emotion will get you.
the fundamentals of this company are starting to sound better and better, the P/E ratio isn't bad, wonder how good this stock is in the long term?