Long Position on UNH @ $62.40 on 4/10/2013 (Momentum)

UnitedHealth Group (UNH), a member of DJIA, operates as a diversified health and well-being company in the United States.

The company’s UnitedHealthcare segment offers consumer-oriented health benefit plans and services for large national employers, public sector employers, mid-sized employers, small businesses, and individuals; health care coverage, and health and well-being services to individuals aged 50 and older addressing their needs for preventive and acute health care services, as well as services dealing with chronic disease and other specialized issues for older individuals; health plans and care programs to beneficiaries of acute and long-term care Medicaid plans; and specialty benefits, such as dental, vision, life, and disability products. This segment serves through a network of 780,000 physicians and other health care professionals, and 5,900 hospitals. 

The company’s OptumInsight segment offers software and information products, advisory consulting services, and business process outsourcing services to hospitals, physicians, commercial health plans, government agencies, life sciences companies, and other organizations. Its OptumRx segment provides pharmacy benefit management services and programs, including claims processing, retail network contracting, rebate contracting, and management; and clinical programs, such as step therapy, formulary management, and disease/drug therapy management programs. 

Shares have formed a bullish "flag" after the firm guided higher going forward. Higher share prices are expected for this stock. The company reports its quarterly results on April 18.

52-Week Trading Range:  $50.32 - $63.95

Entry Point:  $62.40

Stop Loss:  $59.20

Target Price: $68.50

Updates

4/18/2013 9:41:18 AM

UNH reported solid earnings but cut its forward guidance. We lost shares to the down side. Position was closed at $59.

Position closed on 4/18/2013 at price of $59.00 with a -5.45% loss in 8 days.

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