Have you seen a stock drop from $120 down to $30's in a few days?
It's WCG, a healthcare company. I bought the stock between $60 - $90 a few month ago, I forgot the exact dates, only remember it jumped $5 in a day and then it zig zaged for a while, I lost patience. The story behind is that the CEO has been selling his shares for a long time and people imagined some bad news was going to hit. But executives can sell stocks for many reasons, building a house, send kids to college, or even for a divorce battle like Jack. I have to concede that the amount of insider selling is very large in this case, however.
People also might be worried that Baby-boomers are retiring, and the medi-care system is broken... Don't you think they are worried too much, and too early? We didn't even know if the FED was going to lower the rate last week!!
Copied from the Yahoo news:
"WellCare shares dropped 74.4 percent from Wednesday to Friday on the news, though the exact reasons for the raid still are not clear. Connecticut's attorney general said Friday he has been separately investigating WellCare for months."
Anyway, I bought a few call contracts to see what's going to play out.
Have fun,
Swimmer
2 comments:
looks like you had a good call again swim wcg is up in the AH hit 36$$$$$$$$$$$$$$ tonight-monday morning bloodbath trap the short sellers?????????????
you still have not expounded on the severe mkt manipulation going on-how come some techs are flying and some are dying-flavor of the month?-and the oil thing where are we adgain? mkt says cold hard winter using up heating oil/diesel and natural gas-where is NG headed? i know its been low for some time-and the stocks connected with it like GW and PKD?-so many questions and not enough time to answer them all-thanks swim-spud
p.s. someone saying to buy homebuilders now because of a home rebound early in 08- i thought there was going to be a huge amount of resets in arms in the next year and a half???????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
Thanks, hott. This is what I got from Yahoo news:
WellCare Health Plans Inc. (WCG:wellcare health plans inc com
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Last: 27.37+4.50+19.68%
4:00pm 11/02/2007
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WCG 27.37, +4.50, +19.7%) is expected to post third-quarter earnings of $1.52 a share
Investing need patience, if everybody hits the exit button, panic sell, it's the time for us to buy.
Oil price of $95, mostly speculation, there several reasons, big unexpected inventory drop; Fed cut rate, US dollar drop, the oil price is based on dollar, so it becomes cheaper for people use Euro; just a few.
Winter wheather is not one of them, because based on National Wheater forecasting, we are going to have a marm winter. A lot of speculation, remember the oil future buyers are big trend watch, they don't care about fundamentals, as long as the technical looks good, they will buy like crazy, so the price gone up, it became self-fulfill prophecy, feeds on itself. Hot money flow in, supporting the high price. If there is no reason, they can invent reasons. But when smart money withdraw their money, the price will collapse in some point. The recent price jump to $95 was led by the thought the fed is cut the interest rate again.
Enjoy,
Mkt Swimmer
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