WellCare Health Plans, Inc. (WCG)

WellCare Health Plans, Inc. (WCG) is a managed care company focused on government-sponsored managed care services, primarily through Medicaid, Medicare Advantage (MA) and Medicare Prescription Drug Plans (PDPs) to families, children, seniors and individuals with complex medical needs. WellCare provides health plans for over 4 million members, partners with over 91,000 physicians, and employs over 6,000 associates.

WCG’s liquidity position and strong cash flow generation has enabled investment in strategic initiatives that have accelerated growth. The company provided robust guidance for 2017 and reaffirmed full-year 2016 guidance.

Wellcare Health continues the trend higher that began in 2015. Relative value is still strong while the trend in price continues to improve. The stock appears to continue to be accumulated as volume has increased with each move higher.

WCG’s is the story of a company that had to learn about the importance of integrity the hard way. The company came under investigation in 2007 for inflating expenditures and was forced to restate earnings and watch its stock price fall by around 80%. In the subsequent housecleaning the company’s three top executives resigned. Since that time WCG appears to have worked hard to regain the trust of its stakeholders. It now has one of the highest FACTS Integrity scores in its sector and market cap.