Account Information

  • My Account

    Manage all your subscriptions, update your address, email preferences and change your password.

  • Help Center

    Get answers to common service questions, ask the analyst or contact our customer service department.

  • My Stock Talk Profile

    Update your stock talk name and/or picture.


Does the government owe you an extra $1,003 a month?

Boring, Predictable, No-Surprises Strategy Safely Generates $67,548Last year, a little-known loophole allowed a small group of regular Americans collect over $122,366,000 in bonus government cash. And you can join them. It doesn’t matter how old you are, your relationship status, or even how much money you make. There’s simply no way you can be denied from taking part in this plan, too. I’ll show you how here.


Here’s The Real Story Behind Trumpcare’s Defeat

By John Persinos on March 28, 2017

Whenever you observe legislative wrangling in the nation’s capital, look beneath the posturing of the political kabuki theater and focus instead on investor behavior. To learn the real story, follow the money.

Consider the American Health Care Act (AHCA), or “Trumpcare,” which exploded last Friday in spectacular fashion. It was the policy-making equivalent of the Hindenburg disaster.

After pulling the widely loathed AHCA, a chastened House Speaker Paul Ryan declared: “Obamacare is the law of the land.”

This drama occurred shortly before the market closed. In a matter of minutes, hospital stocks soared and closed the day with whopping gains. That’s the big takeaway from Trumpcare’s demise, which the mainstream press missed.

Below, I show you one of the best ways to profit from this relentless health industry dynamic.

Opportunity from the flames…

During the 2016 campaign, real estate mogul Donald Trump portrayed himself as a seasoned negotiator, an unrivaled practitioner of the “art of the deal.” Now that Trumpcare has flamed out, Wall Street is starting to worry whether Trump can deliver the goods on tax reform, deregulation and infrastructure spending. This anxiety will generate greater market volatility in the days ahead.

In the meantime, opportunistic investors can profit from Trumpcare’s defeat, by investing in health care stocks that are integral to Obamacare’s managed care controls. These equities soared on Friday afternoon and their momentum is likely to continue.

On Friday, after it became apparent that Trumpcare was dead, the following for-profit hospital operators and managed care companies closed with massive one-day gains: Molina Healthcare (NYSE: MOH), Community Health Systems (NYSE: CYH), Tenet Healthcare (NYSE: THC), LifePoint Health (NSDQ: LPNT), HCA Holdings (NYSE: HCA), and Universal Health Services (NYSE: UHS).

So far this week, hospital stocks as a whole are continuing their upward trajectory. Problem is, giants such as HCA Holdings are obvious plays on health care growth and their shares are getting pricey. Their upside potential also is limited by their sheer size.

That’s why I prefer mid-cap Molina Healthcare, which operates health plans for millions of Americans eligible for Medicaid, Medicare, and other government-sponsored programs.

With a market valuation of $2.5 billion, California-based Molina is divided into three segments: Health Plans, Molina Medicaid Solutions, and Other. The Health Plans division operates health plans in 12 states, serving 4.2 million members who are eligible for Medicaid, Medicare, and other government-sponsored programs.

The Molina Medicaid Solutions segment provides administrative and information technology services to Medicaid agencies in Idaho, Louisiana, Maine, New Jersey, and West Virginia, as well as drug cost-containment and rebate services in Florida. The Other segment offers behavioral health and social services.

Molina’s low-cost administrative services were already enjoying robust growth before Trumpcare died, as Obamacare greatly expanded Medicaid coverage. This prosperity should accelerate now that Obama’s signature domestic achievement won’t get repealed.

Molina’s “win-win” equation…

Here’s the kicker: Even if Trump somehow succeeds in pushing his goal of health care privatization and reduces Medicare and Medicaid expenditures, companies such as Molina would need to step in and fill the administrative vacuum. This company wins on both sides of the equation.

Molina has grown through methodical expansion without taking on debt or getting overextended. The company also has sidestepped the adverse publicity and litigation generated by unethical rivals in the Medicaid market, which is susceptible to fraud.

As a mid-cap, Molina is large enough to finance organic growth and withstand the inevitable ups and downs of the cyclical health sector. But it’s small enough to confer the sort of outsized gains that are elusive among the bigger players. It’s also apparent that many large-cap health stocks are going through a maturation stage, during which revenue and earnings growth slow down.

The president was mocked by Democrats and even members of his own party for saying “nobody knew health care could be so complicated.” He will discover that changing the tax code is complicated, too. Perhaps more so.

But regardless of what happens to the rest of Trump’s agenda, at least one thing is sure: Obamacare repeal is unlikely to occur anytime soon, a political reality that should drive long-term earnings growth for Molina.

The average analyst expectation is that Molina will rack up year-over-year earnings growth of 13.7% in the current quarter, 35.8% in the next quarter, an eye-popping 312% in the current year, 57.30% next year, and 18.93% over the next five years on an annualized basis.

Got any questions about health care investing in the Trump era? Send me a letter: — John Persinos

The secret to silver profits…

Whenever emotions run hot in global markets, as they are now, investors turn to precious metals for protection and profit.

Gold and silver are typically considered safe havens from market ups and downs, but in reality, they can be just as volatile as any other commodity, or even stock.

Instead, profits can be made by skillfully playing price movements, which is where our in-house expert Jim Fink comes in.

As chief investment strategist of Velocity Trader, Jim is a master at devising innovative trades that exponentially leverage even the smallest market movements.

With most analysts calling for a huge increase in silver prices this year, the profit potential in the “white metal” is huge. But you need to make the right play.

Jim has devised a $1 trade that’s poised to soar 406% within the next 90 days. That’s good enough to quickly turn a small $10,000 stake into $50,633.

But the time to execute this trade is fast running out. To learn the secrets of Jim’s silver trade, click here now.



You might also enjoy…


Obscure Tax Law Forces This Company to Pay Out 90% of its Profits

A 50-year-old loophole is forcing one company to pay out $9 of every $10 it makes from ironclad contracts with the U.S. Government.

In fact, over the past seven years, it’s made payments ranging from a few dollars… to tens of thousands of dollars… 30 times. Without a single cut! 

Most folks don’t even know this company exists, but the ones that do are making a mint.

Like Ted B., who’s set to receive a check for $1,096 just a few days from now.

Merrill H., a 58-year-old from New York, has collected over $3,385 so far. 

And retirees Beth and Terry P. have raked in $16,555.

I’ve put together a special report that will give you all the details, including simple instructions on how to get your name on the payout list before the next cutoff date.

You can get your copy here.

Stock Talk — Post a comment Comment Guidelines

Our Stock Talk section is reserved for productive dialogue pertaining to the content and portfolio recommendations of this service. We reserve the right to remove any comments we feel do not benefit other readers. If you have a general investment comment not related to this article, please post to our Stock Talk page. If you have a personal question about your subscription or need technical help, please contact our customer service team. And if you have any success stories to share with our analysts, they’re always happy to hear them. Note that we may use your kind words in our promotional materials. Thank you.

You must be logged in to post to Stock Talk OR create an account.

Create a new Investing Daily account

  • - OR -

* Investing Daily will use any information you provide in a manner consistent with our Privacy Policy. Your email address is used for account verification and will remain private.