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Profit from the End of Obamacare
Who Stands to Lose with the Demise of Obamacare?
Think of these guys:
Aetna, AET, $46 a share
CIGNA, CI, $49 a share
Humana, HUM, $91 a share
Health Net, HNT, $40 a share
UnitedHealth Group, UNH, $59 a share
Wellpoint, WLP, $72 a share
The Affordable Care Act could be struck down in its entirety or the “Commerce Clause” portion that stipulates fines for nonparticipation could be struck down.
In either case congress will need to deal with the issue again.
And, the insurers and HMO’s that were planning on big profits from an enlarged insurance pool will need to recalculate.
These companies have put a lot of effort into organization.
They may need to cut back on expenses and deal with reduced reserves.
To profit from the end of Obamacare an investor may choose to buy puts on one or more of the stocks listed above, prior to the Supreme Court ruling in June.
They may choose to wait for a ruling and see if any of the stocks listed above start to fall.
The point of this discussion is not to advise for or against investment in any of the insurance/hmo stocks listed above.
It is to stimulate thought and, hopefully, to result in profitable investing.
As always do your fundamental analysis and don’t invest unless you understand what you are doing.
For more insights and useful information regarding investments and investing, visit www.ProfitableInvestingTips.com.