WCG

Wellcare Health Plans Inc

Healthcare


Presented:02/03/2016
Price:$72.98
Cap:$3.24B
Current Price:$349.92
Cap:$17.61B

Presented

Date02/03/2016
Price$72.98
Market Cap$3.24B
Ent Value$5.04B
P/E Ratio28.51x
Book Value$38.75
Div Yield0%
Shares O/S44.42M
Ave Daily Vol482,044
Short Int5.65%

Current

Price$349.92
Market Cap$17.61B
WellCare Health Plans, Inc. provides managed care services which are targeted to government sponsored health care programs, focusing on Medicaid and Medicare. It offers health plans for families, children, and the aged, blind, and disabled, as well as prescription drug plans. The company operates its business through three segments: Medicaid Health Plans, Medicare Health Plans and Medicare PDPs. segment includes plans for beneficiaries of TANF, SSI, ABD, MLTC programs and other state-based programs that are not part of the Medicaid program, such as CHIP. Medicaid Health Plans segment generates revenues primarily from premiums received from the states in which it operates health plans. The Medicare prescription drug plan segment offers stand-alone Medicare Part D coverage to Medicare-eligible beneficiaries. The company was founded in May 1992 and is headquartered in Tampa, FL.

Publicly traded companies mentioned herein: Centene Corp (CNC), Molina Healthcare Inc (MOH), WellCare Health Plans Inc (WCG)

Highlights

Shares of WellCare Health Plans - a pure play managed Medicaid provider - presently trade at a slight premium to Centene (CNC) on a P/E basis (this year and one year forward), and the presenter sees this as unwarranted for a variety of reasons, including overly optimistic Street expectations and “zero organic growth.” He sees the potential for EPS to fall short of 2017 expectations by ~10%, and is short the stock because he believes the multiple will contract. The bearish position makes sense by itself or as a pair with a long position in CNC, he added.

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Idea Discussion

Commentor 1 - 2 weeks ago

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