WellPoint, Inc. (WLP)

This is why I need to enter pitches soon after making picks. I don't recall why I picked this in the first place.

Wellpoint offers a variety of managed healthcare plans to employers, individuals, Medicaid and Medicare markets. There's a lot of political uncertainty in that business.

The stock price got hammered a while back on a poor earnings report. However, at this price it looks cheap. This should be a very steady business in an uncertain economy and 9 times 2009 earnings estimates on a company with a projected long term growth rate of over 13.5% looks like a good value.

My pick is underwater as I type this. But I think there's good potential to recoup at least part of my lost points.

Obama. Democrats. Liberals. Socialists. Communists.

Wellpoint, is the largest provider under the Blue Cross Blue Shield umbrella. The company is well run and attractively valued. The recent negative news in managed health care companies is vastly overstated. Government regulation, may weigh on this stock over the short-term. However, the long-term case for this pick is very, very strong.

Look at insider trading and expense ratios, insiders are selling and the expense ratios are on the rise.

I worked there. Simply put :

- high turnover at the C level

- relying on size and reputation. Competitiors are trying to differienate while they seem complacent on copying and lagging

- Doing a very poor job of integregating WLP and Anthem even 2 years post merger (multiple databases still not merged)

- Poor customer service (although there were programs starting to address this when I left)

- Works like 16 different companies (one in each state) with 16 different sets of rules and 16 different sets of competitors. This is 16 sets of executives trying to address what is best for their state and not WLP (selfish and inefficient)

- Refuses to market themselves on any level expect mail (when is the last time you read something from a health insurance company?)

- Corporate atmosphere of CYA and passing the buck (ties in with previous merger comment)

- Totally unprepared to deal with a Democratic White House

Currently a big player but seems to be doing little to stay that way. C level seems to think the Blue name will carry them but they do not realize that "blue" does not carry the same brand equity with post boomer generation.

Good P/E value at P/E around 10, the danger to Wellpoint's business was overblown and the earnings should rise in the following years. Good long term play.

All metrics tell me this stock is cheap right now. They have been buying back their own stock like crazy and Buffett is on board.

The companies specialising in healthcare will benefit from the combination of an aging population ( ie. baby boomers reaching 65 ) and longer life expectancies.

The need is there, and the stock is at a strong price point. Good conservative buy.

Wellpoint through various acquisitions has obtained an integrated CDHP product that no other carrier in the market can touch (except perhaps UHC's Definity/Extante CDHP product; but who really wants to willingly deal with that behemoth who is reknowned for poor customer service)

With Wellpoint's addition of "Lumenos" and the Anthem Blue Cross Blue Shield of NH & OH (just to name a few) this is a sure bet as the Consumer Driven Marketplace is heating up due to the double digit healthcare costs & trends...

Must have !!!

Undervalued for excellent business model, top notch management, long term hold.

As with all my picks: A very attractive P/E, excellent EPS growth rate and high five year growth prospects.

I believe that Welpoint got tired of everyone else ( finacials and others ) complaining about the economic conditions, etc.. They decided to do some "woe is me" as well by seriously adjusting the numbers. Boy did it get a reaction !!!! The stock tumbled but won't/can't stay down. This baby could speed right back into the 60's or even 70's by next quarter's earning report.

Since it has been beaten down so much, I think it's a good value right now.

I "think" that the market has overreacted to the downward guidance offered by Wellpoint's CEO just the other day. You're talking about a blue-chip health insurance/care plan that's a licensee of blue/cross blue/shield in a majority of the 50 states. The massive sell-off has rendered the stock price at a level that's right around it's book value/share. While I do see massive layoffs, especially in the financials sector, in the near future, which will leave plenty of young americans without health insurance, I also see this company thriving after the correction happening within it's industry. The bottom line is that I see this company at an extremely attractive level and, just to mention, Buffet is a believer in Wellpoint as well. For the conservative investor I say wait until it gets closer to election time to make a decision on where the industry is going. For the mavericks out there, buy.

$80+/share

Time for the rebound.

Huge competitive moat through it's large customer base will give this MCO (Managed-Care Organization) a distinct advantage over it's competitors and inhibit new entrants. Oh and it's undervalued right now too. The fear is nationalized health care, but I honestly do not see that happening overnight if at all.

Buffet is buying. I like solid stocks that are oversold. When the correct their underwriting this will continue to climb. Now's the time to buy.