don barrett

CNC-Healing the Sick

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Centene operates as a multiline healthcare company operates through two segments,Medicaid Managed Care and Speciality Services. The MMC segment provides primary and speciality physician care for medicaid healthcare recipients,state health insurance program for children,and the supplemental security income program. The Speciality Services segment offers various programs to state programs,healthcare organizations,and employer groups.
CNC operates mainly through the Medicaid program for low income people and is thus recession proof. CNC does the work and sends the bill to the government.And CNC is profiting very nicely,thank you. Second quarter revenue jumped by 76.5% to $18 million or .41 cents per diluted share from $10.2 million or .23 cents a share second quarter 2007. CNC had $60 million dollar cash flow for second quarter 2008 and at the same time reduced G@A expenses from 14.4% to 13.5% of revenue. CNC also managed to buyback over 300,000 share during the quarter. The number of Medicaid recipients is growing and Cns growth should continue.
I have been buying options as they offer more bite for the dollar. I bought October 22.5 calls Friday and I think they will respond rather nicely!