This is a repost. The original post from two months ago. Good post....as time marches on with this situation.....some posts continue to ring true. This one does, for sure. Whoever posted this was right.
Molina has lost hundreds of millions of dollars because of poor financial decisions that have cascaded into continued layoffs and rehires at drastically reduced salaries yet the core of the business model is still broken and is not being repaired in any true meaningful way.
Bad managers have and still exist within the organization which further reinforces negative perception by the rank and file that Molina Healthcare has no sense of what it means to bring in talented people or fire the bad performers. Likewise, the business continues to fail on many fronts to that end.
We are losing contracts. New Mexico and Florida losses are symptoms of the disease and expectation that more of the same will continue is apparent. Molina is a broken business and states are waking up to that and taking action.
We are a takeover target and that's just fine with the major stockholders/BOD. Our market presence is small enough to put us in prime takeover / acquisition territory. Time is not on our side as potential companies like Anthem who are actively seeking smaller organizations to gobble up at a discount are circling overhead. What they are waiting for, is just to see which contracts we get back before the end of the year.
The stock is artificially high. Don't buy the BS about stock price. EPS estimates have us at a negative 9000 for 2018. That's bad and as we lost 15% of our business going into 2019, the company's ability to recover will continue to fail as we have less revenue to work with to pay mounting debt payments.
Remember, it's not about emotion, it's about the facts. Molina Healthcare is going down. it's not a question of "if" anymore here, people.. no matter what anyone tries to spin, rely on the history of where Molina was vs where Molina is now.