Notable Calls says - CBO devotes a section to potential Medicare savings, including Medicare Advantage. This caused a sell-off of managed care stocks late Friday, particularly Humana (NYSE:HUM) (stock dropped 3% in 8 mins & closed -2.3%); however, the Medicare Advantage savings options are no different from those that were contained in the CBO report two years ago.
Firm thinks sell-off on HUM was over-done. They expect a rebound on Monday when investors realize there is nothing new here. Reiterates Buy on HUM as the stock is trading at a forward P/E at the low-end of its historical range.
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