Tuesday, March 23, 2010
United Health Group (UNH) & Health Reform
Itz Stocks Chartz suggested United Health Group (UNH) back in October of '09 based on technical, fundamental & sentiment indicators. The chart back then was signaling over sold conditions. One has to remember that the company remained financially sound...but, the fear of the health system reforms drove the stock to extreme low levels. It was a suggested BUY on Oct. 9th @ $24.50. Itz did an update in following months >>READ
Now that the bill has been passed and is being signed by Presidnet Obama as I write this the markets are digesting the winners and losers in the coming years. During this recession and high unemployment many consumers have been forced to drop their insurance coverage. The premiums were set to skyrocket among the remaining pool. Insurance companies were being forced to raise premiums by as much as 40% later this year because of the profit squeeze. However, now that the bill has been passed the scenario has changed. With a government mandate to increase the pool by 32 million people and with the high probability of a strong Jobs Report in April, insurance company like UNH should benefit.