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Health and Healthcare

WellCare Braces For Stock Crash (WCG)

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By Douglas A. McIntyre Updated Published
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WellCare Health Plans, Inc. (NYSE:WCG) has on its website an audio transmission from its Chairman and CEO Todd Farha from Tampa headquarters.  Yesterday 24/7 Wall St. noted about how this was going to be painful for shareholders, and unfortunately there are still more questions than there are answers.  Farha gave just over a 2 minute audio update and some paraphrased comments are as follows:

  • "Wednesday morning officers from state and federal agencies showed with search warrants for documents and files." 
  • "we are cooperating and intend to cooperate"
  • "Essential services are operational and uninterrupted" 
  • "While some employees went home…Majority of associates remained on site while some went home to facilitate investigators access"
  • "Investigation having no impact on delivery of healthcare services"
  • "We continue to pay claims timely"
  • "We continue to answer customer calls"
  • "We expect stock trading will resume and November 5 conference call will proceed as scheduled"
  • "we cannot share additional details yet and will when appropriate"
  • "We remain committed to our mission"

Some indications early on for WCG shares put the stock between $59+ to $71+ versus the $115.17 halt price yesterday.  Unfortunately, there is not really any word or hint out of the company what the full scope of the raid was about.  Obviously the verdict from traders and shareholders is going to be a cruel one, but this is still going to be considered a pending issue.

Jon C. Ogg
October 25. 2007

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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