Stock to Sell #6 – WellPoint Inc. (WLP)
WellPoint Inc. (NYSE:WLP) is the largest U.S. health benefits company serving over 34.3 million medical members through its affiliated health plans. But under the Affordable Care Act, it could be subject to high risk.
The company branched out by buying out 1-800 CONTACTS Inc., the largest direct-to-consumer contact lens retailer in the nation. But according to InvestorPlace adviser, Louis Navellier, “Even a big buyout like this isn’t enough, because WellPoint still has a lot of financial issues to resolve before it becomes a buy in my book.”
The stock gapped down following the Supreme Court’s health care ruling, indicating its vulnerability under the new program. Technically WLP has broken from a rounding top, which is a very bearish formation, with a price objective under $50.