On the stocks of companies whose managers have retracted earnings guidance, buy straddles. This entails buying a put and a call that have the same strike price and expiration date. If the stock price rises or falls, the straddle could increase in value. This is a good strategy for Molex (MOLX), Johnson Controls (JCI), Applied Materials (AMAT), Abercrombie & Fitch (ANF), Leggett & Platt (LEG), Fortune Brands (FO), Coventry Healthcare (CVH), BJ Services (BJS) and Union Pacific (UNP).

1:30

WELL RUN CONSERVATIVE COMPANY

Coventry Health Care, Inc. recently announced that its Board of Directors has authorized the Company to repurchase an additional 5% of its outstanding common stock, bringing Coventry’s total authorization including the remainder of prior authorizations to approximately 9.9 million shares.

The stock trades for 7x cash flow.

I bought Cigna (CI), Humana (HUM) and Coventry (CVH) on Wednesday, Jenner says. I think all have the potential to be up at least 25% over the next 12 months.

Healtcare

smaller health-care company with good growth potential.

long term flyer

Downgraded by Bear Stearns from Outperform to Peer Perform

hEALTHCARE

Fat Pitch Financials: There are a lot of questions regarding Coventry Health Care’s moat in my mind. They might have a small moat but it is too hard for me to tell.