More imminent action in the benefits management sector ?

After 3 multi-billion dollar mergers (involing United Health, Oxford Health, Anthem, WellChoice, Mid-Atlantic Medical Services, WellPoint) and few others valued at hundreds of millions, the sector still seems to be ripe for more.

Aetna (AET) recently seemed to hint at an acquistion.

The truth is this is an acquisitive sector, like banking/S&L . In the long run, every player other than the top 3 or 4 will be acquired. The question is just when! And also, at what price should you be buying them ?

So, who looks attractive right now ?

• HealthExtras Inc (HLEX): This small benefits manager looks the right size. American Medical Security (AMZ), the one acquired recently by Pacificare (PHS) was of comparable size.
  
• Health Net (HNT): This mid-sized services provider is a target if the big players can still swallow a sizeable player.
  

If I had to pick one, it would be Health Extras. I own a few, and am adding at current price. I own some Health Net too, but have paused buying right now - need to see a better price.

Here are the others that are all sound players. These fall into multiple investment criteria, not just takeover plays.

• Humana (HUM) : A good turnaround play, and if everything goes well, will be bought out too.
  
• UnumProvident (UNM): Another turnaround story.
  
• Sierra Heath Services (SIE): Good growth story, as it has a big chunk of the Las Vegas and surrounding areas market, which is among the fastest growing regions in the US. Stock is expensive right now and I am hoping to see a substantial discount from today's price.
  
• WellCare Health Plans (WCG): Recent IPO. Wait for pulback.
  
• Molina Healthcare (MOH): Initial offering just a couple of years ago. Again, looks overvalued right now.