His picks: WellCare Health Plans (WCG), a Medicaid and Medicare service-provider; Boeing (BA); Northrop Grumman (NOC); and Spirit AerosSystems (SPR). "They've produced and earned, but are priced for a diminishing future based on presidential rhetoric," Bruce Berkowitz of Fairholme (FAIRX) says.

Volatile stock. It keeps coming back even after drops. Keeps me diversified. This is a "trade" stock.

Look at healthcare, says Jon Najarian. Aetna (AET) and Wellcare (WCG) are down significantly and I think investors threw out the baby with the bath water.

Question: The stock fell off a cliff late last October, presumably after the headquarters was raided. At around 37 last week, it was fetching less than 10 times 2008 profit estimates of $5 a share. When did you start buying the shares?

Answer: We came in after it fell off the cliff, when it was trading in the 30s late last year. As for the investigation, the only thing we know was that there were 200 agents that raided their campus. But, to this day, we don't know exactly what is involved, except that these kinds of investigations usually involve billing practices. Still, it's growing nicely and its valuation is significantly less than those of a UnitedHealth Group, WellPoint or Humana. The government needs all of these companies to implement its health plans.

$120 stock now trading less than half on accounting worries. No evidence of foul play found. Should be $70 by year end.

in it

Has lots of upward potential - near term target, $60

Wellcare Health (WCG) was upgraded to Sector Outperform- Speculative, CIBC said. $60 price target. Recent search warrant should not have a major effect on the company's Medicare or PDP businesses.

Chinese retailer

down 63% Oct 25
WellCare (WCG) shares lost as much as two-thirds of their value on Thursday following a government raid of its offices. The government has launched a massive investigation of the company, which supplies health insurance coverage exclusively to Medicare and Medicaid recipients. Among others, the Federal Bureau of Investigation and the Medicaid fraud unit for the state of Florida - the company's largest market - participated in the sweep. So far, few details have emerged. However, because the probe involves both federal and state authorities, it could threaten WellCare's Medicare and Medicaid businesses alike.

The stock hit a 52-week low.

missing earnings/YTD down 50%+

Jump in when it tank, hope it will getup!