BloggingStocks http://www.bloggingstocks.com BloggingStocks http://www.bloggingstocks.com/media/feedlogo.gif BloggingStocks http://www.bloggingstocks.com en-us Copyright 2008 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/Trade idea for recent Aetna downgradehttp://www.bloggingstocks.com/2008/07/03/trade-idea-for-aetna-downgrade/http://www.bloggingstocks.com/2008/07/03/trade-idea-for-aetna-downgrade/http://www.bloggingstocks.com/2008/07/03/trade-idea-for-aetna-downgrade/#commentsFiled under: , , , , , ,

AET logoAetna (NYSE: AET) shares are falling today after an analyst at Goldman Sachs downgraded the stock to "Sell" from "Neutral," saying the company will face lower profit margins over the next few years. Other companies in the health-care industry also got downgrades today. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on AET.

After hitting a one-year high of $60.00 in December, the stock has hit a new one-year low today. This morning, AET opened at $36.98. So far today the stock has hit a low of $36.01 and a high of $37.99. As of 11:55, AET is trading at $37.29, down 2.50 (-6.3%). The chart for AET looks bearish and steady, while S&P gives the stock a positive 4 STARS (out of 5) buy rating.

For a bearish hedged play on this stock, I would consider an August bear-call credit spread above the $45 range. A bear-call credit spread is an options position that combines the purchase and sale of call options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make a 4.2% return in six weeks as long as AET is below $45 at August expiration. AET would have to rise by more than 20% before we would start to lose money.

AET has been above $45 as recently as mid-June, but has shown resistance around $41 recently. This trade could be risky if the company's earnings (due out on 7/31) are a positive surprise, but even if that happens, this position could be protected by resistance AET might find at its 50 day moving average, which is currently around $44 and falling.

Brent Archer is an options analyst and writer at Investors Observer.

DISCLOSURE: Mr. Archer owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about. At publication time, Brent neither owns nor controls positions in AET.

 

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]]>AETAetnadowngradehealtcareInvestors ObserverInvestorsObserveroptionsBrent Archer2008-07-03T15:26:00+00:00Before the bell: CVH, CCL, CC, HPQ, GOOG, YHOO, GM, AAPLhttp://www.bloggingstocks.com/2008/06/19/before-the-bell-cvh-ccl-cc-hpq-goog-yhoo-gm-aapl/http://www.bloggingstocks.com/2008/06/19/before-the-bell-cvh-ccl-cc-hpq-goog-yhoo-gm-aapl/http://www.bloggingstocks.com/2008/06/19/before-the-bell-cvh-ccl-cc-hpq-goog-yhoo-gm-aapl/#commentsFiled under: , , , , , , , , , , , , , ,

Before the bell: Futures mixed after selloff

Coventry Health (NYSE: CVH) shares were down nearly 17% in after-hours trading Wednesday after the managed-care provider lowered estimates for second-quarter and full-year earnings due to disappointing April and May results. Wachovia downgraded CVH to Market Perform from Outperform. Other healthcare stocks felt the pressure and were down in after-hours or premarket trading: UnitedHealth (NYSE: UNH) -7%, Aetna (NYSE: AET) -9.9%, WellPoint (NYSE: WLP) -6%, Humana (NYSE: HUM) -5% and Cigna (NYSE: CI) -5%.

Carnival (NYSE: CCL) is due to report second-quarter financial results.
Circuit City Stores Inc. (NYSE: CC) is due to release first-quarter financial results.

Hewlett-Packard (NYSE: HPQ) is reorganizing its printer unit in the face of declining growth of the business, The Wall Street Journal reported. Basically, as consumers print less, H-P is trying to adapt and is reducing five business unitsto three.


Figures released by comScore and posted on TechCrunch show that Google's (NASDAQ: GOOG) U.S. query share rose to 61.8%, Yahoo's (NASDAQ: YHOO) share also rose to 20.6%, and Microsoft's (NASDAQ: MSFT) share fell to 8.5%.
Also concerning these stocks:
- Yang Goes to Capitol Hill to Talk Up Google Deal
- Google's YouTube Is Sued by Spain's Telecinco for Copyright Infringement
- Yahoo addresses e-mail concerns with new domains

General Motors Corp. (NYSE: GM) is delaying the redesign of SUVs and full-size trucks as it undergoes a wider review aimed at building lighter, fuel-efficient vehicles, according to a report in The Wall Street Journal.

The Register claims that Apple Inc. (NASDAQ: AAPL)'s new 3G iPhone costs $100 to make.

 

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]]>aaplaetcccclcicvhgmgooghpqhuminthenewsmsftunhwlpyhooMelly Alazraki2008-06-19T08:25:00+00:00Aetna can see the brighter future from its vantage pointhttp://www.bloggingstocks.com/2008/05/29/aetna-can-see-the-brighter-future-from-its-vantage-point/http://www.bloggingstocks.com/2008/05/29/aetna-can-see-the-brighter-future-from-its-vantage-point/http://www.bloggingstocks.com/2008/05/29/aetna-can-see-the-brighter-future-from-its-vantage-point/#commentsFiled under: ,

Given the uncertain U.S. economic landscape, and accompanying choppy / consolidating market conditions, adding a few defensive plays is a prudent tack. Among insurers, Aetna Inc. (NYSE: AET) is worth an evaluation.

Aetna's wide product offerings and comprehensive coverage is an operational strength, as is its geographic footprint. These factors, along with cost controls, should enable Aetna to maintain solid earnings growth in FY 2008-FY 2009.

Further, analysts like AET's projected F2008 800,000-900,000 organic net membership growth in its health care segment, superior underwriting discipline, and cost controls. Another positive: on the big client side, the Bank of America Corporation (NYSE: BAC) selected Aetna as its primary benefits provider for its employees, beginning in 2009.


What should one not expect from Aetna? Ill-conceived, poorly-researched endeavors. Aetna is a deliberate, move-forward-cautiously operation with a corporate culture that reflects many of the values of the land of steady habits, Connecticut, its home. The Reuters FY 2008/FY 2009 EPS estimates for AET are $3.99/$4.52.

The risks? Analysts are keeping an eye on medical sector costs, projected to increase 7-9% in F2008: a double-digit increases would hurt AET's results.

The First Call mean rating for AET is: Buy [17 firms]. Mean 2008 target: $55 [high: $60; low: $45].

Stock Analysis: Aetna is a low-risk stock. Investors with an investment horizon longer than 2 years should be rewarded from AET's shares. If you don't already own a consumer product or insurance defensive stock, consider adding AET to your portfolio. Sell / Stop Loss if you were to purchase shares in this company: $32.

Disclosure: Lazzaro has no positions in stocks. In addition to private real estate holdings, he owns corporate and municipal bonds, and cash certificates of deposit.

 

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]]>AETAetnadefensive stockshealth careinsurance sectorJoseph Lazzaro2008-05-29T17:09:00+00:00Gay investors support gay-friendly corporationshttp://www.bloggingstocks.com/2008/05/17/gay-investors-support-gay-friendly-corporations/http://www.bloggingstocks.com/2008/05/17/gay-investors-support-gay-friendly-corporations/http://www.bloggingstocks.com/2008/05/17/gay-investors-support-gay-friendly-corporations/#commentsFiled under: , , , , ,

Conservative social and political groups are vowing to fight the recent California ruling in which a republican-dominated court declared that sexual preference should not bar couples from legal marriage. In an Associated Press article, the court opinion is quoted as stating that "domestic partnerships that provide many of the rights and benefits of matrimony are not enough."

In pursuance of equal footing, gay, lesbian, and bisexual investors have been seeking and "outing" corporations with gay-friendly policies and have been backing those companies in a show of financial clout. An example of the application of this forward social dynamic would be Trillium Asset Management, which has at least once scored a "perfect 10" on the Gay and Lesbian Values Index (glvindex). With an investment focus called Socially Responsible Investing (SRI), this company seeks to provide investment returns in keeping with industry standards, while at the same time maintaining "unique focus on social research and advocacy."

Corporations that have taken careful strides to bring their standards up to date with regard to societal equality appear to be gaining in popularity with gay and gay-friendly investors, as evidenced by their placement on and recognition of the glvindex. SC Johnson acknowledged it's high ranking on the glvindex in a company press release that stated in part: "To us, diversity is about building the best, most talented workforce that mirrors the marketplace, and motivating them with an environment that enables people to be themselves and contribute freely and effectively."

Some other big names have gained recognition as gay-friendly corporations, including Aetna Inc. (NYSE: AET), Apple Inc. (NASDAQ: AAPL), Chevron Corp. (NYSE: CVX) and IBM (NYSE: IBM). These companies, and dozens of others like them, have chosen to adopt policies that recognize the realities of social diversity. While the majority of these companies are not outwardly expressive of their atmosphere of tolerance, they nonetheless have brought their standards up to date. A comprehensive list of America's top 100 gay and lesbian friendly corporations can be found at WorldNetDaily.com.

It's a new world out there, and same-sex couples are demanding to have their equal part of it. Whether you like it or not, homosexuality is a powerful reality of our world. Gays, lesbians and bisexually oriented people are here to stay, and they want you to know that this is their world too. Now, let's all just get over it and let's move on, shall we?

 

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]]>bisexualcivil rightsCivilRightsequal rightsequalityEqualRightsgayhomosexualityinthenewslesbianmarriagetransgenderedGary E. Sattler2008-05-17T08:40:00+00:00Early analyst calls: F, LOW, AET, NOChttp://www.bloggingstocks.com/2008/04/25/early-analyst-calls-f-low-aet-noc/http://www.bloggingstocks.com/2008/04/25/early-analyst-calls-f-low-aet-noc/http://www.bloggingstocks.com/2008/04/25/early-analyst-calls-f-low-aet-noc/#commentsFiled under: , , , , ,

Bear Strearns has downgraded Ford (NYSE: F) to "underperform" from "peer perform," according to MarketWatch.

Lehman Bros. has started Lowe's (NYSE: LOW) at "outperform," according to the AP.

Credit Suisse upgraded Aetna (NYSE: AET) from "underperform" to "neutral," according to Briefing.com. The news service also reports that JP Morgan upgraded Northrop Grumman (NYSE: NOC) to "overweight" from "neutral."

Douglas A. McIntyre is an editor at 247wallst.com.

 

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]]>AETFLOWNOCDouglas McIntyre2008-04-25T07:14:00+00:00Barack and Hillary: Government is the problem not the solutionhttp://www.bloggingstocks.com/2008/03/17/barack-and-hillary-government-is-the-problem-not-the-solution/http://www.bloggingstocks.com/2008/03/17/barack-and-hillary-government-is-the-problem-not-the-solution/http://www.bloggingstocks.com/2008/03/17/barack-and-hillary-government-is-the-problem-not-the-solution/#commentsFiled under: , , , , , ,

While kudos should be given to the Fed for trying to do whatever it takes to shore up the banking system, what is a bit more worrisome is how both Barack Obama and Hillary Clinton approach the problem. Obviously they started out by blaming President Bush for these problems.

According to an AP report:

"Now we are in the soup and we better get ourselves out of it before the consequences get drastic," Democratic presidential contender Hillary Rodham Clinton told reporters. Barack Obama said: "History will not judge President Bush kindly for his failure to act in a way that could've prevented or alleviated this economic crisis."

Does Obama think that the President could have prevented the entire economic crisis, had he acted differently? In fact I postulate that one of the major reasons that Wall Street is in the current situation is because of a precedent taken 10 years ago by then Treasury Secretary Robert Rubin. He bailed out his Wall Street buddies after they were set to lose billions in bad investments in Asia, among other places. Go figure that after they get saved once, they go ahead a decade later and continue to make investments without taking into account risk. They knew that they could get away with it because they would get bailed out. And guess what? They are going to get bailed out.

The fact is that the Fed, by injecting liquidity, is doing exactly what it should be doing to try and get the banking system back on track. Many economists believe that had the same strategy been implemented in 1929, there never would have been a Great Depression. Back then they took money out of the system and companies went bankrupt. The Fed is making no such mistake this time.

Aaron Katsman is the lead Portfolio Manager and Managing Director of America Israel Investment Associates, LLC. and Senior Editor of IsraelNewsletter.com. DISCLOSURE: Writer's fund has no position in any stock mentioned, as of 3/17/08.

 

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]]>barack obamaBarackObamaclintonfederal reserveFederalReservegovernment interventiGovernmentInterventiobamarobert rubinRobertRubinAaron Katsman2008-03-17T17:42:00+00:00Before the bell: AAPL, VZ, MSFT, YHOO, DNA, DD, GM ...http://www.bloggingstocks.com/2008/03/14/before-the-bell-aapl-vz-msft-yhoo-dna-dd-gm/http://www.bloggingstocks.com/2008/03/14/before-the-bell-aapl-vz-msft-yhoo-dna-dd-gm/http://www.bloggingstocks.com/2008/03/14/before-the-bell-aapl-vz-msft-yhoo-dna-dd-gm/#commentsFiled under: , , , , , , , , , , , , ,

Before the bell: Investors await inflation data

Not really surprising, but another step to Apple Inc. (NASDAQ: AAPL)'s iPhone global expansion. While investors would really like to see the iPhone released in China and India, Ireland and Austria are important steps in the expansion. Apple just released the iPhone into Ireland and Austria, pricing it €399 for the 8GB model and €499 for the 16GB unit. O2 and T-Mobile are the respective carriers. Mind you, this is just and official stamp as many have already bought unlocked iPhones there.

While peer-to-peer file sharing has been unpopular (to say the least) with internet providers as they tried to limit their use, Verizon Communication (NYSE: VZ) is set to announce Friday its plans to help its users share files faster - at least those who do it legally. Indeed, when an ISP cooperates with a file-sharing software it can speed downloads an average of 60% to six-fold. While it's not clear what the percentage of legal downloads are out of overall downloads, the cooperation can cut costs to Verizon, not to mention increase its attractiveness in the eyes of the consumer.

According to reports in The Wall Street Journal, Microsoft Corp. (NASDAQ: MSFT) and Yahoo! Inc. (NASDAQ: YHOO) executives met to talk about a potential deal for the first time since Microsoft's unsolicited takeover bid on Jan. 31. The execs, it was said, met without a banker, with the intention of Microsoft outlining its plan for the portal.

Genentech (NYSE: DNA), DuPont (NYSE: DD) and Aetna Inc. (NYSE: AET) are scheduled to have their annual analyst meetings. They may move according to what is said.

Shares of General Motors Corp (NYSE: GM) and Ford Motor Co (NYSE: F) fell Thursday after Morgan Stanley cut its 2008 U.S. industry sales forecast as well as GM and Ford's earnings and outlook, putting GM at loss and widerning Ford's loss. GM stock fell to its lowest level in nearly two years and Ford stock to a more than 16-year low. The analyst expects things to improve somewhat in 2009.
Meanwhile, GM said it will road test lithium-ion battery packs for the Chevrolet Volt plug-in hybrid beginning in July, slightly later than expected.

Sprint Nextel Corp. (NYSE: S), who has experienced both a significant share price decline as well as customer exodus, is again the source of some speculations about the company's future. While analysts disagree whether Sprint is ripe for a takeover, they think it is more likely it will begin to sell parts of its operation to generate cash. While Deutsche Telekom and Verizon among other have been named as possible companies interested in buying the wireless business, Intel and Clearwire were named as interested in buying the WiMax segment. Indeed, possibilities are abound, but what everybody seems to agree on, is that the company needs to act.

 

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]]>aaplaetdddnafgmintcinthenewsmsftsvzyhooMelly Alazraki2008-03-14T08:23:00+00:00Humana (HUM) slashes earnings outlook on higher prescription costshttp://www.bloggingstocks.com/2008/03/12/humana-hum-slashes-earnings-outlook-on-higher-prescription-cos/http://www.bloggingstocks.com/2008/03/12/humana-hum-slashes-earnings-outlook-on-higher-prescription-cos/http://www.bloggingstocks.com/2008/03/12/humana-hum-slashes-earnings-outlook-on-higher-prescription-cos/#commentsFiled under: , ,

Yesterday was a difficult trading session for the managed healthcare group, with industry giant WellPoint Inc. (NYSE: WLP) cutting its 2008 profit forecast, blaming higher claims expense and the weak market conditions. Today is another tough day, with health care companies taking another hit on pressure from Humana Inc. (NYSE: HUM), which warned about lower-than-expected first quarter and full year earnings results.

Blaming increased prescription expenses, the second largest seller of Medicare drugs cut its first-quarter earnings outlook to a range of 44 to 46 cents a share against its previous prior guidance of 80 to 85 cents a share. Analysts, on average, expected the health insurer show higher first-quarter earnings of 78 cents, according to Thomson Financial.

The company also projected full-year earnings between $4.00 and $4.25 per share, down from a previous forecast of $5.35 to $5.55. Humana's estimates were below analysts' expectations for full-year earnings of $5.47per share.

On Monday night, rival WellPoint cut its full-year earnings outlook to a range of $5.76 to $6.01 a share, compared with its previous forecast of $6.41 a share. For its first-quarter, WellPoint predicted earnings between $1.16 and $1.26 a share, down from prior forecast for $1.44 a share.

The gloomy outlook from Humana made Wall Street push the stock down over 26% in early trading. Along with the company, the entire managed healthcare group is set for a decline and not even yesterday's reaffirmed forecast from Aetna Inc. (NYSE: AET) could encourage investors.

As the current view over healthcare companies shows, I am not too optimistic that the health insurance industry will be able to overcome traders' disappointment today.

Eliza Popescu is a financial writer for the online investment advisory service Investor's Observer.

 

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]]>aetAetnahealthcarehumHumanainthenewsWellPointwlpEliza Popescu2008-03-12T11:22:00+00:00Before the bell: WLP, AET, NOK, KR, AMZN, C ...http://www.bloggingstocks.com/2008/03/11/before-the-bell-wlp-aet-nok-kr-amzn-c/http://www.bloggingstocks.com/2008/03/11/before-the-bell-wlp-aet-nok-kr-amzn-c/http://www.bloggingstocks.com/2008/03/11/before-the-bell-wlp-aet-nok-kr-amzn-c/#commentsFiled under: , , , , , , , ,

Before the bell: Futures higher on Fed hopes, despite TI (TXN, VOD, BA)

WellPoint (NYSE: WLP) stock is declining 16.7% in premarket trading after the health insurer on Monday cut its 2008 profit outlook. Higher costs and disappointing enrollment as well as worsening economic conditions were cited by the company as the reasons.
Meanwhile, Aetna (NYSE: AET) shares are down 7.5% in premarket trading after it too gave a 2008 outlook below analysts' estimates.

Shares in Nokia Corp. (NYSE: NOK) are slumping nearly 5% in premarket trading after Texas Instruments (NYSE: TXN) said one of its key clients, which it didn't name, has cut plans for 3G phone making for March. While Nokia is TI's biggest client for mobile chips, Sony Ericsson is another. Still, some believe the customer could be Motorola Inc. (NYSE: MOT), which has been losing market share.

Kroger Co. (NYSE: KR) is set to post fourth quarter earnings today and is expected to report earnings of 47 cents a share.

Amazon.com Inc. (NASDAQ: AMZN) said Tuesday it bought more shares of audio book seller Audible Inc., bringing its stake in the company to more than 87% and added it will complete the purchase soon, making Audible a subsidiary. AMZN shares are up nearly 1% in premarket trading.

Citigroup Inc. (NYSE: C) has committed to bolster six highly leveraged municipal bond funds with $15 billion in assets by injecting into them $1 billion, the New York Times reported on Tuesday. The bank also said on Tuesday it would merge its brokerage and investment banking units in Japan. Citi shares are up over 1.5% in premarket trading.

Wal-Mart Stores Inc. (NYSE: WMT) said Monday it would stop offering in its stores computers that run the Linux operating system as they didn't attract enough attention from its customers.

 

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]]>aetamzncericinthenewskrnokmotwlpwmtMelly Alazraki2008-03-11T08:28:00+00:00Pre-market movers: AET, NOK, TXN ...http://www.bloggingstocks.com/2008/03/11/pre-market-movers-aet-nok-txn/http://www.bloggingstocks.com/2008/03/11/pre-market-movers-aet-nok-txn/http://www.bloggingstocks.com/2008/03/11/pre-market-movers-aet-nok-txn/#commentsFiled under: , , , ,

Jones Soda (NASDAQ: JSDA) is off over 24% on weak earnings.

Aetna (NYSE: AET) is off over 6% on a poor outlook for 2008.

Nokia (NYSE: NOK) is off over 5% on concerns that Texas Intruments (NYSE: TXN) chip shipments show a slowdown in handset sales.

WellPoint (NYSE: WLP) is trading down over 15% on an analyst cut.

Stocks may trade differently in the pre-market than they do in the regular session.

Douglas A. McIntyre is an editor at 247wallst.com.

 

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]]>WLPDouglas McIntyre2008-03-11T07:57:00+00:00Cognizant Technology Solutions (CTSH): Shares define bullish 'flag' patternhttp://www.bloggingstocks.com/2008/02/27/cognizant-technology-solutions-ctsh-shares-define-bullish-fl/http://www.bloggingstocks.com/2008/02/27/cognizant-technology-solutions-ctsh-shares-define-bullish-fl/http://www.bloggingstocks.com/2008/02/27/cognizant-technology-solutions-ctsh-shares-define-bullish-fl/#commentsFiled under: , , , , , ,

Cognizant Technology Solutions (NASDAQ: CTSH) provides information technology consulting and technology services in North America, Europe, and Asia. Specialties involve business process consulting, custom systems development, data warehousing, customer relationship management, enterprise resource planning system implementation, and software testing services. The firm serves companies in the financial services, healthcare, manufacturing, retailing, telecommunications, and information services markets. The client list includes such names as Advanced Micro Devices (NYSE: AMD), Aetna (NYSE: AET) and Nokia (NYSE: NOK).

The Street was surprised earlier in the month, when the company reported Q4 EPS of 34 cents and revenues of $600 million. Analysts had been looking for 31 cents and $594.4 million. Management also guided Q1 EPS to 32 cents (32 cent consensus), Q1 revenues to at least $640 million ($632.24M consensus), FY08 EPS to $1.50 ($1.47 consensus) and FY08 revenues to at least $2.95 billion ($2.87B consensus). Stifel Nicolaus subsequently reiterated its "buy" recommendation on the shares and declared a $43 price target

The stock popped on the news and then passed into a bullish "flag" consolidation pattern. Prices frequently exit flags moving in the same direction they were traveling on entry. In this case, that would be to the upside.

Brokers recommend the shares with nine "strong buys", nine "buys" and five "holds". Analysts see a 30% average annual growth rate, through the next five years. The CTSH EPS Growth rate (47.83%), Return on Assets (22.13%) and Return on Investment (27.20%) compare favorably with industry, sector and S&P 500 averages. Institutions hold about 94% of the outstanding shares. The stock is one of those used to calculate the S&P 500 Index. Over the past 52 weeks, it has traded between $23.37 and $47.34. A stop-loss of $27.90 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold positions in any of the stocks mentioned above.

 

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]]>Cognizant Technology SolutionsCognizantTechnologySolutionsCTSHflagfundamental analysisFundamentalAnalysismomentumtechnical analysisTechnicalAnalysisLarry Schutts2008-02-27T14:48:00+00:00eHealth's good bill of healthhttp://www.bloggingstocks.com/2008/02/15/ehealth-s-good-bill-of-health/http://www.bloggingstocks.com/2008/02/15/ehealth-s-good-bill-of-health/http://www.bloggingstocks.com/2008/02/15/ehealth-s-good-bill-of-health/#commentsFiled under: ,

With the presidential election, the topic of healthcare has been red-hot. And that's giving more visibility to eHealth (Nasdaq: EHTH), which operates a platform to allow individuals, families and businesses to purchase health insurance.

No doubt, it's is a good business. In Q4, eHealth posted revenues of $24.2 million, up 39%. Net income came to $22.4 million (which included a major tax benefit). Cash flow from operations was $7.9 million, up 61%. In all, eHealth has $121.5 million in the bank.

Basically, eHealth is a marketing powerhouse - and has been particularly skillful with online advertising and search engine optimization. That is, if you query popular healthcare terms on Google (NASDAQ: GOOG), you are likely to see links to eHealth.

The company is also getting lots of traction from major partners, such as Aetna (NASDAQ: AET). What's more, eHealth is expanding into new markets, such as with China and a new product for HSAs.

Interestingly enough, the slowing economy may be helping eHealth. How? Well, as people lose their jobs, they often need to buy their own healthcare insurance policies.

So far, investors are happy with the results. In today's trading, eHealth's stock is up 17.57% to $25.90.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates DealProfiles.com.

 

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]]>eHealthEHTHinthenewsTom Taulli2008-02-15T14:10:00+00:00Option update: Aetna volatility increases as shares sell off on NY AG investigationhttp://www.bloggingstocks.com/2008/02/13/option-update-aetna-volatility-increases-as-shares-sell-off-on/http://www.bloggingstocks.com/2008/02/13/option-update-aetna-volatility-increases-as-shares-sell-off-on/http://www.bloggingstocks.com/2008/02/13/option-update-aetna-volatility-increases-as-shares-sell-off-on/#commentsFiled under: ,

Aetna Inc. (NYSE: AET) is recently down $1.72 to $48.80. The New York Attorney General is expected to announce an industry-wide investigation of healthcare insurance companies, according to Reuters.

AET March option implied volatility of 34 is above its 26-week average of 29 according Track Data, suggesting larger price fluctuations.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

 

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]]>AEThealth insuranceHealthInsuranceNew York Attorney GeneralNewYorkAttorneyGeneralPaul Foster2008-02-13T11:02:00+00:00Humana (HUM) Share price forms bullish 'flag'http://www.bloggingstocks.com/2008/01/17/humana-hum-share-price-forms-bullish-flag/http://www.bloggingstocks.com/2008/01/17/humana-hum-share-price-forms-bullish-flag/http://www.bloggingstocks.com/2008/01/17/humana-hum-share-price-forms-bullish-flag/#commentsFiled under: , , , ,

Outfits that manage health care plans bring an amazing array of business and technical specialists together to deal with a service that can be as complex socially as it is medically. One of the most successful U.S. practitioners of the art is headquartered in Louisville, Kentucky.

Humana (NYSE: HUM) provides health insurance coverage and related services through various employer groups and government-sponsored programs. It offers Medicare Advantage health plans and prescription drug coverage to members throughout the United States and administers managed care plans for other government agencies and the military. It also offers health plans and specialty products to commercial employers and individuals. In all of its programs, Humana serves more than 13 million members. Aetna (NYSE: AET) and Cigna (NYSE: CI) are major competitors.

The company pleased investors last week, when it affirmed its in-line FY08 EPS guidance of $5.30 to $5.50. It also reiterated its forecast for a net 2008 membership gain of 200,000-250,000 in Medicare Advantage enrollment.

The stock popped into a bullish "flag" consolidation pattern on the news. Prices frequently exit flags moving in the same direction they were traveling on entry. In this case, that would be to the upside.

Brokers recommend the issue with four "strong buys", three "buys", nine "holds" and two "sells". Analysts see a 17% average annual growth rate, through the next five years. The stock's PEG ratio (1.17), Price to Sales ratio (0.59), Price to Free Cash Flow ratio (8.42), EPS Growth rate (61.05%), Return on Investment (14.62%) and Return on Equity (22.48%) compare favorably with industry, sector and S&P 500 averages. The stock is one of those used to calculate the S&P 500 Index. Institutional investors hold about 89% of the outstanding shares. Over the past 52 weeks, HUM has traded between $52.31 and $88.10. A stop-loss of $73.75 looks good here. Note that the firm is expected to report Q4 results on February 4th, before the opening bell.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold positions in any of the stocks mentioned above.

 

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]]>flagfundamental analysisFundamentalAnalysisHUMHumanamomentumtechnical analysisTechnicalAnalysisLarry Schutts2008-01-17T13:33:00+00:00H&R Block CEO Mark Ernst is latest subprime casualtyhttp://www.bloggingstocks.com/2007/11/20/handr-block-ceo-mark-ernst-is-latest-subprime-casualty/http://www.bloggingstocks.com/2007/11/20/handr-block-ceo-mark-ernst-is-latest-subprime-casualty/http://www.bloggingstocks.com/2007/11/20/handr-block-ceo-mark-ernst-is-latest-subprime-casualty/#commentsFiled under: , , , , ,

H&R Block Inc. (NYSE: HRB) Chief Executive Mark Ernst today resigned as his efforts to unloaded the company's money-losing subprime mortgage business Option One Mortgage Corp. to Cereberus Capital Management LP nears collapse, according to Bloomberg News.

Former SEC Chairman and hedge fund manager Richard Breeden, who had long complained about losses at Option One and lead a proxy battle against the company, was named chairman and Alan. M. Bennett, a former CFO of Aetna Inc. (NYSE: AET), interim chief executive. H&R Block is conducting a search for a new CEO. Bennett has told the company he doesn't wish to be considered as a candidate, the company said in a press release.

Cerebeus agreed to pay H&R Block $800 million for Option One in April, well under the $1.3 billion the company had hoped to get. Cereberus may scuttle the deal entirely now given the continued uncertainty of the credit markets. It's unclear what's going to happen to Option One which Ernst had said H&R Block may close if it couldn't find a buyer, Bloomberg said.

Shares of Kansas City-based H&R Block, which have slumped more than 17% this year, rose in pre-market trading. It will be interesting to see if Breeden will be able to help turn around H&R Block now that he's become an insider.

 

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]]>aetaetnacerberush and r blockHAndRBlockHRBinthenewsMark ErnstMarkErnstJonathan Berr2007-11-20T10:03:00+00:00eHealth (EHTH): Shares move into bullish "pennant", on good earningshttp://www.bloggingstocks.com/2007/11/13/ehealth-ehth-shares-move-into-bullish-pennant-on-good-earn/http://www.bloggingstocks.com/2007/11/13/ehealth-ehth-shares-move-into-bullish-pennant-on-good-earn/http://www.bloggingstocks.com/2007/11/13/ehealth-ehth-shares-move-into-bullish-pennant-on-good-earn/#commentsFiled under: , , , , ,

So many things are sold on the Web now that it can be difficult to remember when it all got started. Some might be surprised to know, for example, that the first Internet-based sale of a U.S. health insurance policy was made over ten years ago. The firm involved was a Mountain View, California outfit that serves nearly 400,000 customers today.

eHealth, Inc. (NASDAQ: EHTH) is an online source of health insurance for individuals, families and small businesses. The company presents health insurance information in a user-friendly format, enabling the comparison and purchase of health insurance products that best meet consumers' needs. The firm is licensed throughout the United States, operating in partnership with some 160 health insurance carriers. It provides health, dental, and vision insurance products from the likes of Aetna Inc. (NYSE: AET), Cigna Corporation (NYSE: CI) and Coventry Health Care, Inc. (NYSE: CVH).

eHealth pleased investors earlier in the month, when it reported 3rd Quarter (Q3) earnings per share (EPS) of 15 cents and revenues of $23 million. Analysts had been expecting 12 cents and $22.4 million. Management also guided fiscal year (FY) 2007 EPS to 51-55 cents (48 cent consensus) and FY07 revenues to $87.2-$88.0 million ($86.8M consensus). Estimated membership grew 35%year over year. EHTH shares popped on the news and then moved into a bullish "pennant" consolidation pattern. Prices frequently exit pennants moving in the same direction they were traveling on entry. In this case, that would be to the upside.

Brokers recommend the issue with four "strong buys", three "holds" and a "sell". Analysts see a 32% growth rate, through the next year. The EHTH Sales Growth rate (37.72%), Net Profit Margin (25.05%), Return on Assets (27.98%), Return on Investment (32.14%) and Return on Equity (103.02%) compare favorably with industry, sector and S&P 500 averages. Institutional investors hold about 67 percent of the outstanding shares. Over the past 52 weeks, the stock has traded between $17.67 and $34.89. A stop-loss of $28.70 if one were to consider the stock looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com.

 

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]]>eHealthEHTHfundamental analysisFundamentalAnalysismomentumpennanttechnical analysisTechnicalAnalysisLarry Schutts2007-11-13T17:06:00+00:00Fed two-step: Infuses $41 billion after rate pause hinthttp://www.bloggingstocks.com/2007/11/01/fed-two-step-infuses-41-billion-after-rate-pause-hint/http://www.bloggingstocks.com/2007/11/01/fed-two-step-infuses-41-billion-after-rate-pause-hint/http://www.bloggingstocks.com/2007/11/01/fed-two-step-infuses-41-billion-after-rate-pause-hint/#commentsFiled under: , , ,

One day after cutting key short-term interest rates, the U.S. Federal Reserve, in a surprise move, added $41 billion in liquidity to the markets, The Wall Street Journal (subscription required) reported Thursday.

The Fed used three separate operations to inject the $41 billion, in the largest injection of funds since the August 2007 credit/liquidity crisis, The Journal reported.

Fed Analysis: At first glance, the Fed's $41 billion infusion may seem contradictory, given Wednesday's mild quarter-point interest rate cut and accompanying statement that appeared to lay the ground for a monetary easing "pause" at its next meeting in December.

Still, a more careful read reveals that these slightly divergent actions are complementary and nothing new for the Fed. With Wednesday's statement the Fed signaled that U.S. GDP growth is adequate (but not robust), and that the markets are functioning well, while also noting the Fed remains on guard for price pressures. Thursday's $41 billion infusion signals that the Fed, nevertheless, also remains ready to ensure the proper function of the markets, should additional credit market disturbances surface in the weeks and months ahead. In sum, it's a classic, nuanced, two-step by the Fed: it's ready to implement a rate cut pause if the economy gains momentum, but simultaneously ready to add liquidity, should conditions warrant.

 

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]]>bond marketbondscredit marketsFederal ReserveGDPinterest ratesinthenewsliquiditymonetary policysubprimesubprime loanssubprime mortgagesUS economyJoseph Lazzaro2007-11-01T15:00:00+00:00Earnings highlights: Apple (AAPL), Merrill Lynch (MER), UAL (UAUA), and many othershttp://www.bloggingstocks.com/2007/10/27/earnings-highlights-apple-aapl-merrill-lynch-mer-ual-uau/http://www.bloggingstocks.com/2007/10/27/earnings-highlights-apple-aapl-merrill-lynch-mer-ual-uau/http://www.bloggingstocks.com/2007/10/27/earnings-highlights-apple-aapl-merrill-lynch-mer-ual-uau/#commentsFiled under: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

The earnings crunch continues to roll along, and here are a some highlights of this past week's earnings coverage from BloggingStocks:

While Jonathan Berr looks for the market's heroes and villains, Sheldon Liber and Georges Yared offer their thoughts on the value of AMZN. And Merrill Lynch's results prompt both Jim Cramer and Zac Bissonnette to ponder.

Upcoming results to watch for include: Verizon Communications Inc. (NYSE: VZ), Procter & Gamble Co. (NYSE: PG), Exxon Mobil Corp. (NYSE: XOM), Sirius Satellite Radio Inc. (NASDAQ: SIRI), Viacom Inc. (NYSE: VIA), U.S. Steel Corp. (NYSE: X), MGM Mirage (NYSE: MGM), and Kraft Foods (NYSE: KFT).

Visit AOL Money & Finance for more earnings coverage.

 

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]]>AAPLAETAetnaAmazon.comAmerican ExpressAmgenAMGNAMZNAnheuser-BuschAppleAvery DennisonAVYAXPBABaidu.comBIDUBMYBoeingBristol-Myers SquibbBUDCFCCMCSACNHCoachCOHComcastCountrywide FinancialDOWDow Chemicalearnings reportsELEMCEstee LauderExxon MobleGDGeneral DynamicsGeorges YaredGlaxoSmithKlineGSKHALHalliburtonHASHasbroJBLUJetBluJim CramerJNPRJonathan BerrJuniper NetworksKFTKraft FoodsLexmarkLMTLockheed MartinLXKMERMerckMerrill LynchMGMMGM MirageMicrosoftMOTMotorolaMRKMSFTNetflixNew York TimesNFLXNYTPanera BreadPaxarPGPlavixPNRAProcter and GambleSheldon LiberSIRISiriusTexas InstrumentsTXNUALUAUAUnited AirlinesUPSUS SteelVerizonVIAViacomVioxxVMWareVZWaste ManagementWMIXOMZac BissonnetteTrey Thoelcke2007-10-27T11:40:00+00:00Defensive stocks: Aetna's steady earningshttp://www.bloggingstocks.com/2007/10/25/defensive-stocks-aetnas-steady-earnings/http://www.bloggingstocks.com/2007/10/25/defensive-stocks-aetnas-steady-earnings/http://www.bloggingstocks.com/2007/10/25/defensive-stocks-aetnas-steady-earnings/#commentsFiled under:

Given the current choppy, consolidating market conditions, adding a few defensive plays is a prudent tack. Among insurers, Aetna Inc. (NYSE: AET) is worth a review.

Aetna's wide product offerings and comprehensive coverage is an operational strength, as is its geographic footprint. These factors, along with cost controls, should enable Aetna to maintain solid earnings growth in 2007-2009. The Reuters F2007/F2008 EPS estimates for AET are $3.43/$3.89.

What should one not expect from Aetna? Ill-conceived, poorly-researched endeavors. Aetna is a deliberate, move-forward-cautiously operation with a corporate culture that reflects many of the values of the land of steady habits, its home state of Connecticut. Aetna's shares rose $2.08 to $54.98 in Thursday afternoon trading.

Technically, Aetna's chart looks good. AET's only recent major breach of its 50-day moving average occurred during the August 2007 market sell-off, and the stock has been above its 200-day moving average for about a year.

Stock Analysis: Aetna is a low-risk stock. If you don't already own a consumer product or insurance defensive stock, consider adding AET to your portfolio. Sell / Stop Loss: $32.

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]]>AetnaConnecticutdefensive stocksDefensiveStocksinsuranceJoseph Lazzaro2007-10-25T15:45:00+00:00Aetna (AET) soars after beating estimateshttp://www.bloggingstocks.com/2007/10/25/aetna-aet-soars-after-beating-estimates/http://www.bloggingstocks.com/2007/10/25/aetna-aet-soars-after-beating-estimates/http://www.bloggingstocks.com/2007/10/25/aetna-aet-soars-after-beating-estimates/#commentsFiled under: , , , , ,

AET logoAetna Inc. (NYSE: AET) shares are trading higher today after the company reported a 4% increase in quarterly profit this morning on earnings per share of $0.95, above analysts' expectations of $0.92 per share. Furthermore, the company upped its full-year outlook to $3.48 per share from the $3.40-$3.42 range. If you think that the company won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on AET.

Aetna stock has been following an upward trend all year, reaching a new 52-week high with today's gains. AET opened this morning at $54.30. So far today the stock has hit a low of $54.30 and a high of $55.38. As of 10:30, AET is trading at $54.94, up $2.04 (3.9%). The chart for AET looks bullish and steady, while S&P gives the stock a very positive 5 STARS (out of 5) strong buy rating.

For a bullish hedged play on this stock, I would consider a January bull-put credit spread below the $47.50 range. A bull-put credit spread is an options position that combines the purchase and sale of put options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make a 5.3% return in just 3 months as long as AET is above $47.50 at January expiration. Aetna would have to fall by more than 13% before we would start to lose money. Learn more about this type of trade here.



AET hasn't been below $47.50 by more than a few cents since April and has shown support around $52 recently. This trade could be risky if the U.S. government makes some unfavorable changes to health care policy, but that doesn't seem to be happening any time soon and even if it does happen, this position could be protected by strong support around $47.50, plus the stock's 200-day moving average, which is currently at $48 and rising.

Brent Archer is an options analyst and writer at Investors Observer.

DISCLOSURE: Mr. Archer owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about. At publication time, Brent neither owns nor controls positions in AET.

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]]>AETAetnaearningsInvestors ObserverInvestorsObserveroptionsBrent Archer2007-10-25T13:55:00+00:00