eHealth, Inc. (NASDAQ: EHTH) had a pretty good run today at the stock market. The EHTH shares jumped 4.25% today at the end of the trading day. But not everything is peachy.
According to the latest information eHealth seem to be under investigation. The investigation is started by Pomerantz LLP “concerns whether eHealth and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.”
The concern for unlawful business arise from April 8 post at Moody Waters when they said that “EHTH’s highly aggressive accounting masks what we believe is a significantly unprofitable business. Based on variable costs alone, we estimate that EHTH will lose approximately -$135 from each MA member it enrolled in 2019. If also including fixed costs, our per MA member loss estimate becomes -$402.” and added that “EHTH management is running a massive stock promotion”
After this stock plummeted to $103. But the EHTH stock price is back at $125 today, which is much higher than it was back on April 7.
What will come up out of this story it remains unknown.
Are you long on EHTH?
