18points....here Molina is getting many new business but stock drops. What happened? What isn't being shared?
7 replies (most recent on top)
Many things are not being shared
another revolving door us corporate dumpster
The stock dropped bc the new business is already priced in to the actual share price and company as a whole. Plus the just had earnings and the price went through the roof due to great earnings. In the market we buy the rumors (great earnings play expected) and we sell the news (with good earnings more investors buy in and it drives price up crazy high and then everyone sells.
The person who commented on RBG's death had it right as well. Sorry I forgot to include that in my post about stocks. It created a period of uncertainty if it was going to take her place so some investors got spooked and reduced their positions probably as well.
It's bc even as we are obtaining new business sometimes the cost of such news and expectations of how it will affect shareholders is already baked into the stock price. Some Institutional and retail investors may have reduced their position Molina until closer to the acquisition being completed and terms are ironed out completely. In general though the whole sector has been down the past few weeks. It's called rotation. Like some weeks manufacturing and construction businesses do well for two or three weeks and then they'll rotate out and it'll be technology stocks or equities that get some love for a couple weeks.
Must be due to RBG death, other insurance companies took a hit too.
Molina Healthcare Inc (MOH) Plunges 8.5% on September 21