Long Position on HMSY @ $33.00 on 9/12/2012 (Momentum)

HMS Holdings Corp. (HMSY) provides cost containment services to government and private healthcare payers and sponsors.

The company’s services include coordination of benefits and program integrity services. Its coordination of benefits services provide cost avoidance services that offer validated insurance coverage information, which is used by government-sponsored payers to coordinate benefits for incoming claims; and program integrity services identify improper payments on a pre-payment and post-payment basis, recover overpayments, detect and prevent fraud and abuse, and identify process improvements.

The company also offers audit programs, program design, benefit management, and general and pharmacy systems consulting services.

It serves state Medicaid agencies, the centers for Medicare and Medicaid services, Medicaid and Medicare managed care plans, government and private employers, pharmacy benefit managers, child support agencies, the Veterans Health Administration, commercial plans, and healthcare payors. 

Shares are heading higher in an "Upward Trading Channel." They are presently sitting at the lower boundary of the said channel. We expect shares to rebound from current levels. 

52-Week Trading Range:  $22.45 - $37.19

Last Trade:  $33.00

Stop Loss: $31.35

Target Price:  $36.30

Updates

10/4/2012 9:52:58 AM

The Company guided lower. Shares fell to our stop loss.

Position closed on 10/4/2012 at price of $31.00 with a -6.06% loss in 21 days.

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