Thread regarding Molina Healthcare Inc. layoffs

Your narrative in addition to the below observations provide a set of metric insights into several of the tools being deployed in continuing to hold this stock. The RSI, stock oscillating measures and movement algorithms do not present buy summary but rather a continued bear sentiment. While many notable analysts do not believe that the Medicare for all should not be having the negative risk impact - it apparent is doing so. I wonder if others have an opinion on Molina price reversing a downward trend.

Good point, I guess I never thought of it from that angle in terms of the market acting positively because I do see it all the time where the market well flock upon I guess company that's having some Financial issues. I believe lots of times they only do that if 1) shares are very cheap at the moment and 2) It has to be a company that has potential to regain that momentum upwards.

Teasing of the revenue projections is a perfect way of putting that because that's the overall sentiment I got from the call as well in regards to guidance going forward. I I don't think things like there General and administrative expenses increasing in this last quarter from like 6.9 in Q2 of last year to 7.2 Q2 this year. Molina did decrease its operating expenses for this last quarter but we also had a decrease in our operating income.

I'm just wondering if Molina is going to hit those rejection numbers. I mean after all their liabilities that were paid plus their assets they had like 200 something million cash on hand. At the end of the day I think the price Target of 160 seems mildly over bullish, but I think Molina trying to save things like administrative and operating costs as well as doing things like entering new markets will only ultimately help the company in terms of investor confidence.

My read on the last call was primarily two points - can your financial improvements continue and be sustained on a go forward basis and secondly, teasing of the revenue forecasting as revenue has been diminishing since new management. The story of a pivot to sales is diluted by the performance since the management arrived versus growth in the past. I do not believe the layoffs are a negative with firms issuing WARN act notices to which the market many times very as a positive.

I completely agree with that as well about the overall attitude towards our sector in the market. I'm kind of wondering myself where that bottom is going to be. Kind of wish we were in the biotech sector right now because they are rocking today.

I do think that the last earnings call seemed a bit more questionable because if you go back and look even at the transcripts a lot of the analysts that were on the call seem to seek more clarification on Jose answers almost as if he was being too vague at times when he was answering them. Kind of wondering as well if the word about layoffs is getting out and about and starting to Spook some investors.

It seems that Molina is testing a bottom in being in the oversold category. The sector has been in a down position for several months. To the two queries on the stock moving in a downward direction you also have to consider the impact of the blues and reds indicating a change is coming in healthcare for which the market places as a high risk, the general negative attitude of the market and the Molina no sales for two years influencing the market. For better or not, Molina chose to remove itself from the market which was a poorly crafted strategy by the Board.

Actually "JZ" its the contrary - you're on OUR dime...you run the company that we as shareholders OWN. You're considered an asset to the company right? As shareholders , any debts and assets alike are transferable and distributable to a company's shareholders - so the deeper truth is simple.....we own YOU.

Now good sir - head down, get back into ur office and increase OUR share price and Price Target

To the person writing book type responses. Please, please, please. Put your head down deep into caid and not on the stocks. Your on my dime. Geez, this is why they hired me. As always, thanks for all you do folks.

To the person writing book type responses. Please, please, please. Put you head down deep into caid and not the the stocks. Your on my dime. Geez, this is why they hired me. As always, thanks for all you do folks.

As of Thursday Molina enters oversold territory RSI falls below 30

This dialog may be the most useful one I have read thus far on this tread. I thought a sale of Molina would be baked into the price with this section consolidating during the past year. I had not noticed the insider piece so thanks for this tidbit as I will looked into the amounts.
If it is consistent, the it suggests more need for cash flow or better investment neither of which bode well for a high degree of confidence in future direction of a firm ( which th BOD is responsible for to a large degree).

The outsourcing piece can be positive or negative. Positive in terms of obtaining faster levels of expertise, cost containment, conserving management focus if balanced well...negative in terms of distinguishing your firm from others, staff loyalty and BTW costs control if your approach is unique and innovative. It is difficult from reading to have an impression of how the clients ( states contracted with) feel with respect to being serviced by Molina as references to other states or buying again fron Molina due to not bidding on new business. The pivot to sales strategy feels flawed as I know of few firms that simply stop attempting to sell (build revenue) as stated in analyst reports.

Of course my overall impression is that Molina is being run by a group of financial accounts with limited experience in growing business which if somewhat accurate - only good for a short term play. In contrasts to the Centenes, Aetnas etc. stock depression is similar with thexception of slightly more profit taking or cycling out which at this point I attribute to vision and sales.

Our IT dept is doing a great job and a big driver in out our stock values. Please be nice to IT on the phone and thank them for their generous time.

I would definitely say yes that that is built into the price already especially today's. And you are absolutely correct that the whole MC sector has been getting regular lashings from government officials as well as private sector investors alike. It also doesn't help when we have a president who can't keep his a– off Twitter long enough for I guess any industry in the stock market to recover from. You're right to the fact that sales have been down but I do think it will go back up here soon. I think it's stupid for Molina to layoffs people during times like these, don't mean everybody because we all know that there are some people who needed to go. Our board members do so much Insider buying and selling that is ridiculous especially RR. She cashes out about 350 plus shares it seems like once a month. We are in the line of business of serving the needy and we look like we have some of the most greediest board members around. I think one thing that would help with share price being more consistent would be for us to stop Outsourcing jobs and furloughing people who have been there for years and years. Or at least if you're going to do it Outsourcing then do it at a slower rate because we look desperate to save the simplest penny by any means possible.

I fully agree with your narrative. I have been somewhat day trading and join you in losing dollars as I learn. If it was easy then everyone could make $$$$. I follow Cramer and with his resources he still loses at times. With Molina I do understand the downward trend however, it seems from the posts that sales are also lacking. It also seems the MC sector is taking a hit during the past few months which would align with your statement of the employment numbers being at all time highs. The pending potential of a divesting action is also a probability which I wonder if this is build into today's price.

You are quite welcome. I do suggest to everyone that they participate in the stock purchase program. Remember just because you bought so many shares every 6 months it doesn't mean you have to keep them. I usually keep a couple shares and the rest I have switched over to my individual e-trade account since that is who manages our stock purchase program, and Buy other companies that I'm interested in. To be honest with you I have learned more about business in the past 2 years of actively trading stocks then any of my courses could have ever taught me. When I first started it was very overwhelming and I had no idea what the hell I was doing. But I made a point to research what certain numbers meant or certain terms and if it meant things are looking good or looking bad for the company. It got even better once I started learning and I began to make some money doing this LOL not going to lie I lost about $3,000 in my first year.

Thanks so much for the insight and your detailed explanation. You have a great grasp of the read from which I will certainly benefit. Your read my query correctly as I am in the research mode.

Merger Speculation baked in after Molina was tossed aside
Nothing new here with managed care and insurance
Basically another Aetna at this point

Well, not sure of how much you know about trading - there are times when a company's stock price is bullish (going up), bearish (going down), and consolidating or correcting. MOH price has been going up and up for the past couple of years. Pretty soon that high price action starts to stall and individuals as well as institutions (like Goldman Sachs) start to sell their shares and look elsewhere for other hot price action.

In technical terms there is something called a "Montier C-Score". It uses six factors to determine is companies are cooking the books sonthey look attractice on paper come earnings report time. The C score is valued from 0-6. Lower the score - the better chance the books are being kinda smudged - higher and it shows a company that doesnt have to impress everyone. Think about it, Molina has had solid earnings quarter after quarter for quite a while - each quarter beating analysts estimates by far. MOH has a C-Score of 2. When looking at a companies balance sheet you have to look at assets and liabilities. Lots of assets are good, lots of liabilities (debts) are bad. I think Molina reports "extra assets" that may or may not be there.

Molina does have rising debts and investors look at something called "Working Capital Ratio" -the working capital ratio, is a liquidity ratio that displays the proportion of current assets of a business relative to the current liabilities. The ratio is simply calculated by dividing current liabilities by current assets. The higher the ratio means thatba company has the ability to pay back its debts should it need to I guess in kind of a hurry with any assets it may have on hand -well Molina ratio is a mere 1.73...thats not something investors want to see. I mean we invest in profitable companies so we can get some money in return right? So if Molina is showing they cant manage their cashflow all that well then why give them my money to manage? I want a good return on my investment not a "might or might not" get a good return.

I day trade all day and one thing I look for when I go to analyze who I want to invest in be it for one day or a year, is a stock indicator called "RSI" (RELATIVE STRENGTH INDEX). This gives investors a quick glance at what is happening under all the company data. Its used to see if Molina shares are being overbought (happens when share price keeps going up and everyone seems to want a piece of the action) or oversold (now seems like everyone is selling their shares). There are two numbers you should look for when it comes to RSI - the number 20 and anything below it and the number 80 and anything above it. Anyting that is 20 or below shows that all these shares have been sold by investors and now there's a lot of them that other investors can buy a cheaper price. Think about it like this if everyone seems to have shares in Molina pretty soon it loses its value because there is too much of it in circulation and you can have that is still be profitable as an investor but without any type of company news or anything exciting happening in a company your rate of return on your share price is going to be minimal. So when RSI is below 20 that means too many people have sold their shares and you can buy some shares at a cheaper price and hopes that the price will go back up as people start buying more and more of them. You then have to be careful that the RSI is not over 80. Againthis means that too many people have shares now so round 80 is when I will usually sell my shares. Buy Low sell High right? So one of my answers to your question about the stock price being so low is because looking at it right now the RSI is 33 for MOH. Basically it means that the RSI has been coming down little by little and the stock has just kind of floating around out there. But watch as it gets closer to 20 the price will start to go up because people are going to start buying again.

You also have to remember that Molina is losing members due to an economy that is or should I say was getting better. The jobless claims are decreasing and people are landing jobs that pay health insurance for them so they don't need Molina anymore. I can tell you that Within 6 months the membership will be right back up there. So as an investor, and yes I do work there as well. I don't want to invest in a company that isn't going to be making as much money because of business hurting for them for whatever reason such as membership decline. I would simply wait for their business to start blooming again and then reinvest at the right time. I can also offer you this piece of information - look at what the price Target is currently for any company that you invest in. Analysts from investment firms and Banks are calling for Molina's stock price Target to reach $160 a share. So with Molina trading at about $118 a share if someone was to buy now end they had that price target of $160 you made about $42 per share.

I hope this offers some insight as to why the share price has been declining some 4 the past few weeks and I apologize for the lesson but so many ppl do not realize that all they have to really do to see if Molina is in trouble or not is learn how to read balance sheets in stock price indicators which most of them are very straightforward and you will have a good picture of where Molina is going. Kudos to you though for at least seeking an answer and not just crying wolf.

Maybe cuz they s— and are clueless on day to day ops. Just pocketing a paycheck.