2Wk·

Molina Healthcare

$US60855R1005 (+1.43%) entry more than favorable or am i stupid? over 50% of ath solid foundation only whole sector suffers but think there is one of the biggest entry opportunities? mng

2 Comments

Jakobi@Jakobi

2Wk

As far as I know, they do a lot of business with Medicaid. However, the entire program could fall victim to the efficiency measures. So there is a realistic risk here that (depending on the size of the cut) little to a lot of revenue will be lost. Depending on the extent, this also justifies the slump in the share price and you quickly go from an 8 P/E ratio to 15, which is not cheap with weak growth prospects.

The trick is to estimate how strong the effect would be. As an amateur investor, I personally don't have the confidence to do that

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Memo0606@Memo0606

2Wk

also think

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