Jim Cramer’s Sell Block - Managed Care
During the “Sell Block” segment, Cramer highlighted a number of stocks that will be losers off the new Medicare spending bill that Congress passed on Wednesday. Cramer advised viewers to avoid managed care companies, especially Healthspring (HS) which he feels will be punished the most by the new plan. He also said avoid Humana (HUM), Coventry (CVH), HealthNet (HNT) and Triple-S (GTS). He also put United Healthcare (UNH) on the list because the company has 12% exposure to Medicare. “Managed care companies are also poised to be hit by the shrinking economy. When unemployment rises, membership in HMO goes down,” he said. These companies will be hit from both ends and should be avoided. The “Clean Tech” sector is poised to be the biggest gainer in 2008. See what our analysts rank as the #1 opportunity today



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