Michael Decter Catamaran Corp CCT-T PAST TOP PICK Jan 14, 2015

A pharmacy benefits management company. Basically provides transparency for companies and communities that are looking to end up reducing drug costs. They cover 350 million prescriptions each year across 32 million members. Produces significant free cash flow. Earnings are expected to grow by 21%, and then accelerate to 34% in the coming 2 quarters. Stock appears to be breaking out of a 3 years sideways trading band.

In this environment, he is looking for things that he thinks are not expensive and that have some growth potential. He likes the area they are in. This is basically moving healthcare and the distribution of pharmaceuticals more onto an online system like the Obama care. They throw off cash and use their cash to make acquisitions to fill in their product line. Trading at about 18-19 times forward earnings.

It seems to be holding in alright. It is still very much intact. It probably needs re-stimulating in some way because the story is a bit stale now.

United Health has made an offer for the stock. He waited a few weeks to see if another offer would come through. What bothered him about the deal is that this would be dead money until the deal closed. To have a name sitting there going sideways for the next 5-6 months would not have been very beneficial to the performance in his portfolio. United Health is a phenomenal company, and you couldn’t have asked for a better name to be taking this over. There might be something to look for, in how they treat it from a tax perspective. There is always some risk of an antitrust situation or some other regulatory situation. He doesn’t think the deal will fall apart.

(A Top Pick Aug 13/14. Up 63.47%.) This company was acquired. Had thought the business was undervalued and that there was an opportunity to grow the business and the chance that they could be acquired.

(A Top Pick Oct 21/14. Up 71.32%.) Unitedhealth (UNH-N) took this out for a nice healthy premium.

(A Top Pick Jan 2/15. Up 30.5%.)

(A Top Pick March 9/15. Up 31.7%.) This was acquired.

(A Top Pick March 9/15. Up 31.7%.) (Now part of UnitedHealth.)