Catamaran Corp (CCT.TO)

Exchange for buying pharmaceuticals. There is a lot of risk because the contracts are really short. There are positives, but the valuation is too high. Prefers express scripts.

Stock Price came back quite a bit this year. He has been Buying Puts to take premium out on it, so that if it went lower he could buy some more. Thinks this name has gone through the worst of it. The selling season they are going through right now is actually going quite well for them. Thinks they can use M&A to buy in smaller shops, which they have done historically in a very accretive fashion. Great cash flow.

(A Top Pick Dec 20/13. Down 6.09%.) Quite a volatile stock. They do pharmaceutical benefit management in the US. Becoming increasingly more important with Obama Care as millions more people are going to have coverage. Good entry point.

Healthcare in general has seen a tremendous amount of technology spending. It needs it. The rollout of the Affordable Care act in the US is making the public and private pharmacy benefit exchanges much more valuable. Their acquisitions over the last couple of years have been ultimately accretive to earnings. On a valuation basis you are probably trading at around 20X earnings.

This was expected not to do so well and have a flattish year, but had a surprisingly very good first quarter. They are reporting in the next couple of weeks, and if they have another one the stock has room to move. Looks interesting, but a little bit risky if you buy before the earnings.

Doesn’t have any good news on this. Chart shows the stock has established a downward trend. Broke a short-term support in the last couple of days. Underperforming the market, and is below its 20 day moving average. Wait until there are positive technical signs before Buying.

Doesn’t know if they get taken out. Not an overly demanding multiple. Integration issues with some CI work. It’s on his radar.

Sold his holdings when he thought the valuation was too high. Had a good quarter and the stock moved up, but looking at the other companies in this space, their multiples have also come down. He would rather see a couple of quite strong quarters before stepping in.

Pharmacy benefits manager. He likes to adhere to a stop-loss program, but there was nothing in the numbers or any research that could explain the big downdraft the stock was having other than the environment with healthcare, Obama care, etc. Greater earnings report last week. Thinks they still have good numbers ahead of it.

(Market Call Minute.) Had a blow out quarter yesterday in the stock has gone up 7%-8%. His target is $60 in one year.

Nervous about earnings coming out this week. There could be a miss. Likes it over the long term. They are positioned well and it will be a good growth profile going forward. This is where healthcare is going.

This gets very close to getting stopped out in his portfolio, but hasn’t quite reached that point. Feels there has been a lot of misunderstanding and confusion around a lot of things that are been happening with this company recently, causing a lot of volatility in the name. Also, with Obama care and medical issues in the US, there has been confusion about who is going to win, where does the money go, etc. Thinks the Obama mandated healthcare situation is going to bring about 30 million more customers into the pipeline. This will be quiet for a while longer, but you’ll probably start to see it creep up at some point.

Has taken a pounding after a big run. A big beneficiary of Obama care in the US. Not inexpensive but as more Americans get insured under Obama care, the market for this company will grow. Very good at what they do.

There is a critical level at $46-$47 and the stock must not break below that level. Consider a stop loss.

Pharmacy benefit management. With the new healthcare act coming into the US there is room for them to grow over the longer term. Ranks in the middle of the pack in his process.