Molina Healthcare (NYSE: MOH) is
a multi-state managed care organization that arranges for the delivery of healthcare services to persons eligible for Medicaid and other government-sponsored programs for low-income families and individuals. The firm has about 1.2 million members in California, Michigan, Missouri, Nevada, New Mexico, Ohio, Texas, Utah and Washington. It also offers preventive health education, disease management and pharmacy management services. As well, it operates nineteen primary care clinics in California.
Shareholders were pleased with the company's investor day presentations last week, when management highlighted potential positive catalysts for the year and maintained the firm's 2008 profit guidance. Deutsche Bank, Credit Suisse and Wachovia analysts subsequently issued favorable remarks about Molina's prospects. The guidance was termed "conservative" and confidence was expressed in the firm's ability to meet it. M&A growth opportunities were also mentioned.
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