Friday, April 28, 2006
'Healthspring Eternal'
Yesterday, Aetna (AET) imploded. AET - big, big health insurance
co. When something that huge falls off the tracks, there is bound to be
some real nasty pin action.
Yesterday, we had a situation with the health insurance co.s, the HMO's -
people were shooting first and not even bothering to ask questions.
We had though, what I like to call a 'crescendo sell off,' where everything in
the group gets crushed. And, finally at last, the selling gets overdone,
and that's what happened.
Now, after a 'crescendo sell off,' everything's supposed to bounce back into
bull mode. And that's what happened today. But, you know, there's
always a stock that gets left behind; always a stock that falls through the
cracks.
If you get a good orphan - you know, a stock that has no real defenders on the
sell side - a stock that has no sponsorship - then it usually won't bounce back
like everything else.
That's why I like orphans. They are a major opportunity to make
money. I say stop crying, and adopt an orphan. And today I found
one worth adopting, and it was Healthspring (HS)!
This thing is a Medicare HMO. It came public just a couple of months ago
in February, and it made the awful mistake, I mean tragic - the classic don't
buy signal - of having to lower guidance in the first qtr. After it came
public.
This is an orphan that Cramer knows should be adopted!
The bottom line: this stock is cheap is too cheap because it's got no
friends. It barely participated in today's healthcare recovery, but it
should have to come up sooner than later. I think you buy HS sooner,
rather than later, before somebody other than Cramer decides to adopt it and
send you to the house of pleasure.
FROM FRIDAY NIGHT'S SHOW:
4/28/06
Lightning Round
Island Paradise
Go West
Healthspring Eternal
