This post was just published on ZYX Buy Change Alert.
The Supreme Court is likely to make a ruling on Obamacare this month. It is always difficult to predict judicial decisions, it appears that the ruling is likely to go in the favor of Obamacare but you never know. For this reason it is prudent to reduce the risk by reducing the total amount of dollars invested in healthcare stocks in the portfolio.
Consider taking profits on CYH and exit the position in the zone of $55 to $56.83. CYH is long from $45.06 and 50% of the full core position size is being held. As of this writing CYH is trading at $55.28.
On THC, consider taking profits on the tranche entered on November 7, 2014 in the zone of $53 to $54.43. THC is trading at $53.03 as of this writing. Consider continuing to hold the long-term core position on THC from $20.40.
If the Supreme Court ruling goes against Obamacare, CYH and THC are likely to be the hardest hit among our portfolio stocks related to healthcare. Some of the other healthcare stocks in our portfolio that may affected are:
ACAD
ADMS
AKRX
ARIA
BPMC
CNC
GLMD
HOLX
KBIO
MNK
MNTA
MOH
MYL
PRGO
RAD
SNN
VEEV
WBA
WCG
As a group there are significant unrealized profits in these stocks but significant profits have also been realized.
For tracking purposes, we will continue to hold the foregoing stocks. However, investors may want to reassess their own situation and consider realizing profits in some of these stocks into the strength the market is showing now.
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