Wellcare Health Plans (WCG) Drops 50% On FBI Raid

Wellcare Health Plans (WCG) is a large managed healthcare provider for the US government Medicaid and Medicare programs. The stock is down around 60% today and that's a lot for a company that was originally valued at around $4 billion. I'm taking a quick look. I don't know much about the medical field so I may pass on this but it's worth checking it out.

Ticker: WCG
Market cap: $2 billion
TTM P/E: 11
Forward P/E: 8
P/Sales: 1.01
P/BV: 7

ROE: 38%
Debt/Equity: 0.2

The risk here is that they do all their business with the government, and being on the wrong end with the government will severely hurt their future. This is also the type of business where bad publicity can be lethal. Here is a news article providing some background info.

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