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This Health Care Stock, Prescription for Profits: Weiss

If you’re looking for an inexpensive stock with upside, trader Stephen Weiss would like a word.

Weiss, who is managing partner at Short Hills Capital suggests a long position in Well Point and cites two catalysts.

1) Weiss thinks the company’s acquisition of Amerigroup will be accretive to share price despite the 43% premium paid.

"It gives them more exposure to Medicaid," he explains. And Medicaid is expected to be a big growth area. Fifteen to 20 million customers will be up for grabs when Obamacare goes into effect in 2014.

2) Speaking of Obamacare Weiss also thinks the stock benefits simply because the Supreme Court has ruled and the overhang of uncertainty has been removed.

“Frankly, I see nothing but upside here,” he says.

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Posted by CNBC's Lee Brodie





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Trader disclosure: On July 12, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Karen Finerman is long AAPL; Karen Finerman is long BAC; Karen Finerman is long JPM; Karen Finerman is long WMT; Karen Finerman is long TGT; Karen Finerman is long GOOG; Karen Finerman is long NFLX; Karen Finerman is long M; Karen Finerman is long CMI; Karen Finerman is long CMI CALLS; Karen Finerman is short SPY; Karen Finerman is short IWM; Karen Finerman is short MDY; Joe Terranova is long VRTS; Joe Terranova is long MCD; Joe Terranova is long PNC; Joe Terranova is long USB; Joe Terranova is long TCBI; Joe Terranova is long SBUX; Joe Terranova is long MNST; Joe Terranova is long NKE; Joe Terranova is long WFM; Joe Terranova is long MAR; Joe Terranova is long AAPL; Joe Terranova is long EMC; Joe Terranova is long NXPI; Stephen Weiss is long CAT; Stephen Weiss is long VZ; Stephen Weiss is long TOT; Stephen Weiss is long BCE; Stephen Weiss is long DVN; Stephen Weiss is short X; Stephen Weiss is short JCP; Stephen Weiss is short PCAR; Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long NUE; Guy Adami is long AGU; Guy Adami is long BTU; Guy Adami is long MSFT; Guy’s Wife works at Merck

For Charlie Bobrinskoy
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Charlie Bobrinskoy is funds long GS
Charlie Bobrinskoy is funds long KKR
Charlie Bobrinskoy is funds long JPM
Charlie Bobrinskoy is funds long BAC

For Jim Bower
Jim Bower is long Corn
Jim Bower is long NATGAS

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