Healthcare is one of the few sectors that has kept an "overweight" rating in 2009. Today, the call options in HUM were on fire, drawing very high volume. The March $30 call went from $.05 to $.50, resulting in a 1000% return, on 21,000 contracts, with only 2,000 in open interest. That kind of volume on HUM signals that it is a "takeover target". I went to do some research, to find that HUM has nearly $26 of cash per share and the stock is trading at $24.50! what value! After seeing this, I began to research some names and below is a list of "Healthcare Value Plays" that could also be possible "takeover targets" or better yet, great long positions. Cash is king in this environment and each of these names have great cash levels.
HUM, HNT, VVUS, REGN, ARNA, AMLN, CYPB, HS, MEDX, AGP, KG, SVNT, UNH, ALKS, ISIS, ONXX, PFE, ACOR, LGND, ALGN, ISRG, IM, PPDI, BMY, AMGN, SGEN, UTHR,VRTX
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