Group health insurance and services company John Alden Financial Corp. (NYSE: JA) (N) (S) was scalped for $3 1/2 to $28 after reporting Q3 EPS from continuing operations of $0.10, falling well short of the mean analyst estimate of $0.34. The company's medical loss ratio declined in states where it is continuing operations, but group health premiums for the quarter declined about 21%, adjusting for discontinued operations. John Alden also announced that it has hired CS First Boston to look into a sale of the company or possible business combinations (a merger with another company).

A friend of mine who was head of the JALIC medium-large group financial underwriting department in Charlotte recently took a position with another carrier and has not been replaced. Could this be a sign that a merger or a sale is in the offing?????

Look's like my friend knew what he was doing. Fortis is about to buy John Alden for $22.50 am share. I sure hope everyone sold when it was up at $32 last year.