Discussion in 'Wall St. News' started by S2007S, Oct 25, 2007.
i may go long on this one....
Ok, Can someone explain this to me. Lets say they actually cheated somehow with the Medicaid program. Wouldn't it just mean that in the worst case the company will be fined and maybe CEO/CFO will go to jail? Is that enough reason to cut stock price by more than half.
I remember all the Spitzer investigations and all those stocks came back pretty soon although they sold of pretty big first e.g. AIG
You wouldn't per chance be assuming investor rationality here?
The fear here is that if senior management is shonky, then who knows what other "gems" are hiding deep within that firm.
Welcome to the phucked up world of valuation.
It'll be interesting to see how this one plays out.
Diving in here is a high risk/reward play.
Remember Healthsouth. Can't remember exactly what happen back then.
Medicare is 90% of their biz, if they get kicked out of the program they're done.
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