Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Medicaid coverage provider Amerigroup
So what: Hurt by a one-time charge associated with a premium adjustment in Georgia, Amerigroup posted a second-quarter profit of $0.83 per share, down from $1.31 per share in the year-ago period. The shares have been on a tear in recent months, up 50% in 2011 alone, so it's no surprise that the earnings drop is triggering Amerigroup's biggest share price sell-off in years.
Now what: I wouldn't be so quick to pounce on this sell-off. The Georgia issue has raised a cloud of uncertainty over the space, with Medicaid-dependent insurers WellCare
Interested in more info on Amerigroup? Add it to your watchlist.