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Strategies & Market Trends : Value Investing

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To: Paul Senior who wrote (48552)7/9/2012 10:22:02 AM
From: Mark Marcellus   of 78717
 
Wellpoint buys Amerigroup:

finance.yahoo.com

I own AGP and I have mixed feelings about this. It's a decent pay day but I liked the company, thought it was well managed, and it had good growth potential.

I do find it interesting that WLP is doing this as cash only with no stock (though possibly some debt). They obviously think their stock is undervalued. I don't generally do insurers - I bought AGP after I had some dealings with them and was impressed. When I checked out their stock it looked obviously cheap even for an insurance illiterate like me. Since I now have some cash looking for a home, I guess I'll have to turn to WLP and take a stab at understanding them.
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