Author Topic: CVS - CVS Health Corporation  (Read 54268 times)

dwy000

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Re: CVS - CVS Health Corporation
« Reply #170 on: May 19, 2019, 06:54:02 AM »
Dont forget there is an extra $1bn of interest expense to fund the acquisition, the integration expenses for 2019 and the hit they are taking on the LTC business this year (which, yes, is a degradation of the business).  Management has beenvery explicit that 2019 is a restructuring year.

That's not to underplay your point.  The retail and PBM margins are under pressure and theres always questions about where the payer business is going.  But I like the industry and demographic tailwinds, the oligopoly market, the consolidating payer market and the combined business model.  And most of all the price today


dwy000

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Re: CVS - CVS Health Corporation
« Reply #171 on: May 22, 2019, 12:15:46 PM »
If there's a better source for in depth analysis on drug spend and the channel as a whole (retail pharma, payers, PBM's, etc - and the interplay between them) I've yet to find it.

Great summary today on the spend by PBM's on drugs overall and the breakdown between unit vs. price. 

https://www.drugchannels.net/2019/05/which-pbm-best-managed-drug-spending-in.html#more

KCLarkin

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Re: CVS - CVS Health Corporation
« Reply #172 on: July 11, 2019, 06:06:02 AM »

Saluki

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Re: CVS - CVS Health Corporation
« Reply #173 on: July 11, 2019, 06:16:44 AM »
Wow...trump admin cancels plans to eliminate drug rebates:

https://www.cnbc.com/2019/07/11/white-house-pulls-proposal-to-eliminate-drug-rebates-politico.html

I own some BHC so it should get a nice pop today.  It was unexpected, but I'll take it. 
If it's important, do it every day. If it's not important, don't do it at all.  -Dan Gable

wolverine890

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Re: CVS - CVS Health Corporation
« Reply #174 on: August 07, 2019, 09:13:50 AM »
After this morning announcement it doesn't seem like the pressures the market thought the company would face are coming to fruition. If CVS earns the midpoint of the new guidance ($6.89-$7.00) the company is trading at ~7.8x adjusted EPS. CFFO was also raised to $10.1-$10.6B. Seemed strong to me and the stock seems cheap.

Pharmacy Service grew by 4.2%, same store sales grew by 4.2%.

Gregmal

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Re: CVS - CVS Health Corporation
« Reply #175 on: August 07, 2019, 09:40:18 AM »
Results were again good, if not great(especially relative to the price). I'm beginning to think that one of the major threats here, in Amazon fighting for this business, could abate if nothing else due to the fact that they(AMZN) would be wise to take the foot off the pedal in order to stem regulatory risk.

wolverine890

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Re: CVS - CVS Health Corporation
« Reply #176 on: August 07, 2019, 09:45:28 AM »
Any type of economic contraction would add to AMZN's pressures to expand into new markets.

ander

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Re: CVS - CVS Health Corporation
« Reply #177 on: August 07, 2019, 12:18:01 PM »
Any type of economic contraction would add to AMZN's pressures to expand into new markets.

Could you clarify what you mean? I didnít follow.

wolverine890

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Re: CVS - CVS Health Corporation
« Reply #178 on: August 08, 2019, 09:22:42 AM »
Any type of economic contraction would add to AMZN's pressures to expand into new markets.

Could you clarify what you mean? I didnít follow.

Ya, sorry. IMO AMZN, as Greg said, would be wise to "take the foot off the pedal" of expanding into many areas of the economy. My thought was that an economic contraction would help CVS solidify their position and create a decent amount of pressure for AMZN if they choose to continue to compete in this market. Does that make more sense?

I would think an economic downturn would be great for CVS. There business is more or less recession proof. In 08-09 rev grew 12.9% OP grew 6.5%. From 09-10 (the only year in the last decade with negative rev growth), rev fell by only 2.3% & OP fell by 4.3%.

ander

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Re: CVS - CVS Health Corporation
« Reply #179 on: August 08, 2019, 02:25:41 PM »
Thx. Makes sense. I agree re: AMZN.