United Health is the parent company of United Healthcare of California, one of the Bay Area's largest health plans.
Chief Executive Stephen J. Hemsley noted the quarter's results were hurt by lower margins, adding that second-quarter weakness also stems from reduced margins at its risk-based businesses and Medicare operations. "We are continuing to take the aggressive specific steps necessary to improve our operating performance, as well as to better position our organization for sustained future growth," he said. To stop weakness in the risk-based operations, the company has been letting go of some customers who didn't generate enough profits.
After drops about 60% since December 2007, UNH's stock looks cheap now. However people still needs health care insurance service that is provided by company like United Health.
For my technical analysis please visit my blog at http://conquerthewallstreet.blogspot.com/2008/07/united-healt...
$22.71 (07/07/08)
