As we highlighted earlier today, $MGLN invalidated our long rationale and triggered our stop. As of today’s close we were losing 12.2% on the position. Per our usual process we will take tomorrow’s (Tues) open as our exit.
$MGLN got hit hard today along with $VHS on the loss of an Arizona Medicaid contract. The why and how makes little difference to us, and to be honest even if it had closed marginally above, instead of below, the $47.48 line in the sand we mentioned at entry, we’d still be getting out. Moves like this are game-changers, and we don’t stick around to find out if it will bounce or not. We’re wrong, pure and simple, so we’re out. Cut losers, run winners.
Magellan Health ($MGLN) -12.2%. Original 2/20 entry post here.