How could it suddenly dawn on holders of Cigna (CI), Aetna (AET), United Health (UNH) and Wellpoint (WLP) that they are PENOs instead of HMOs! That means Public Enemy No. 1, by the Anti-HMO-in-Chief Barack Obama. I have been telling people to sell these stocks endlessly because the president wants their business to be nonprofit, which is difficult if you are a public company.

He's destroying the margins of Aetna (AET) and Cigna (CI). These companies, particularly Humana, have this tremendous Medicare senior plans where they were just raking it in and were subsidized by the government.

It's health care that is most unexpected: anti-Obama health care, like Cigna (CI) and UnitedHealth (UNH) and Aetna (AET). These health care cost containers were supposed to be crushed by Obama because of their unfeeling, unthinking ways. The perspective Obama came in with would make you believe that the key issue for these companies is to ruin their margins. It also doesn't hurt that Tom Daschle got dinged, because he has a real socialist approach to medicine. With him out of the picture, the group has room to run.

Mad About Options: Test-Driving PACCAR: The Mad About Options crew reviews Jim Cramer's recent bullish comments about PACCAR and offers options strategies for traders and investors. Also hear options ideas for Aetna and Nordic American Tanker.
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because I own a lot

From a recent Mad Money show: "That's one of the best in the group. They're buying back a lot of stock and I'd be a buyer."

From a recent Mad Money show:

"That's one of the best in the group. They're buying back a lot of stock and I'd be a buyer."

Managed-care provider Cigna Corp. said recently its board of directors increased the company's stock repurchase authority by $500 million.

Cigna also announced it had repurchased 5.5 million shares for $220 million during the second quarter. The insurer has repurchased 6.7 million shares for $265 million so far this year.

The company has about 275 million shares outstanding and about $565 million of stock repurchase authority available.

The company also reaffirmed its full-year earnings-per-share guidance but lowered its expectations for medical membership growth and adjusted health care operating income.

The insurer said it still expects adjusted earnings of $4.05 to $4.25 per share, but it said medical membership will grow by 1 percent instead of the previous range of 2 percent to 2.5 percent.

The stock trades for 7.5x cash flow.

From a recent Mad Money show:

"That's one of the best in the group. They're buying back a lot of stock and I'd be a buyer."

Cigna (CI) was upgraded to Buy rating from Neutral at UBS. Price target and FY09 eps estimates hold at $50 and $4.85, respectively.

not good business model

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