Author Topic: CVS - CVS Health Corporation  (Read 70856 times)

Spekulatius

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Re: CVS - CVS Health Corporation
« Reply #190 on: November 23, 2020, 03:29:20 PM »
I am still holding. While AMZN entry in a market is always a concern, there substantial friction to switch over from a convenient choice like Walgreen or CVS.

I think the reason CVS did the Aetna deal is exactly the concern about the long term viability of the front end “convenience store” setup. They try to get more in an integrated model with Minute clinics replacing the front end. I think the pandemic actually helps because it drives people to vaccinations and testing. My workplace used to have an annual flu clinic, but not this year, because of social distancing, so we are urged to go to CVS instead (which I did). I think the COVId-19 rollout will be another opportunity for CVS to get deeper into this and acquire new customer for the Minute clinics. Aetna itself is doing great and actually has exceeded the projections from the merger so far.

Financially, they are close to their target leverage stated before the Aetna merger, so they should be able to increase the dividend (which was frozen) and do buybacks. This should be good for the stock.
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benbuffett

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Re: CVS - CVS Health Corporation
« Reply #191 on: November 24, 2020, 06:50:59 AM »
Thanks Spec1  :)