WellPoint is about to release earnings. Ponder the Bear Case Scenario and see if you still have confidence in the long or is the short starting to look good:
Obamacare and the US Health industry overhaul has built-in huge uncertainty. Markets dislike uncertainty. The rest may just be bad history.
Transparency and competition will pressure pricing and profits for MCOs.
WellPoint has underperformed in the past few years and maybe poised for an upswing. If they stumble and investors lose faith the last diehards will bail and the momo will go wrong.
George Gutowski writes from a caveat emptor perspective.