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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Spekulatius who wrote (48520)	6/30/2012 1:08:22 PM
From: E_K_S	1 Recommendation Read Replies (1) \| Respond to of 78744

Hi Clownbuck - Re: WellPoint Inc. (WLP) -NYSE & "For Profit" HMO's I sold all of my HMO stocks and basically am fundamentally against investing in any "for profit" HMO. I feel health care is a social right (especially in the richest country in the world) and should be provided at a break even and/or subsidized universal price. I just can not see "profit" being made on these services especially for the HMO sector. That said, that's pretty incredible that WLP has reduced their outstanding shares by over 40% from their FCF. I guess that "for profit" model has benefited the company and the shareholders. Maybe that's why my heal care premiums are such a large % of my net income now and my monthly health insurance payments exceed my monthly home mortgage payment. Health care is still a large percentage of our GDP so it is important to me to be exposed to the sector. Both Becton, Dickinson and Company C (NYSE: BDX) and Medtronic, Inc. (MDT) -NYSE have been mentioned and I like these companies. I would also invest in some type of "for profit" preventive care/nutrition companies. That is why I have a small amount of Nestl (NSRGY). That was brought to my attention from several of your posts over the years. That company has done some incredible things w/ their manufacture & distribution of their baby formula all throughout the world. EKS

To: Spekulatius who wrote (48520)	6/30/2012 1:25:41 PM
From: Bordeauxman	Read Replies (1) \| Respond to of 78744

If you like WLP, how about HUM? Most valuation factors seems to be in HUM's favor vs WLP. Other than the uncertainty of the new approved health law effects - what it may do I'm thinking is positive for insurers. After a quick review of this sector based on your WLP suggestion, I prefer HUM. Going to add to my HUM position (and/or sell some Jan 72.50 puts) on Mon. Anything I missed or a better idea? -Bordeauxman

To: Spekulatius who wrote (48520)	7/2/2012 9:23:56 AM
From: benbuffett	Respond to of 78744

Hi Clownbuck I have been in an out of this a couple of times over last few years. I have always bought while it was trading under book value, and sold when it reached or over shot book ;-) Bruce Berkowitz of Fairholm funds had several healthcare issues going a few years back, WLP being one of these. I see it trades under book again, will put it back on watch list. Thanks