Jim Cramer Thinks It Is Time To Sell UNH, HUM, RHB
CNBC's Mad Money host Jim Cramer thinks that investors should sell UnitedHealth Group Inc. (NYSE: UNH), Humana Inc. (NYSE: HUM) and RehabCare Group, Inc. (NYSE: RHB).
The main reason for selling these stocks is that easy money has been made and it is not wise to be greedy at this point. Another reason is that these companies have a lot of Medicare exposure, and government will probably make some cuts in that area due to a huge deficit.
Humana (HUM) receives 74% of its revenue from government and 60% of that comes from Medicare. RehabCare (RHB) gets 70% of its revenue from Medicare and UnitedHealth receives 30%.
Goldman Sachs (NYSE: GS) upgraded UnitedHealth (UNH) and Cramer believes that investors should use that to sell at a better price.
In the health-care sector, Cramer recommends Bristol Myers Squibb Co. (NYSE: BMY), WellPoint, Inc. (NYSE: WLP) and Covidien Ltd. (NYSE: COV).
