CVS Health Corp (CVS)

All healthcare companies starting in pharmacies have been vertically segments like insurance, but they've had a tough time, because pharmacies are low-margin and getting tougher. Also, governments are getting more involved in drug pricing. Thirdly, post Covid medical procedures remain high which also squeezes margins. He exited CVS 6-8 months ago.

Likes the pharmacy benefits division, but retail is soft and affecting overall earnings and revenues. Consumer is moving more toward online and e-commerce.

Was originally a pharmacy then expanded into insurance and healthcare centres. Long run, it makes sense, but it had faced bumps. Their model will take a lot longer to play out, but they are the best at it. They are more than just a drug store. At current levels, you're fine to hold this.

Has sold shares in company. Unsure on why company has not been able to perform. Better options for investors out there. 

They reported a solid quarter, but cut their full-year forecast for a third time. Total revenues were up YOY and their pharmacy business is doing well. They could turn things around.

The type of company he doesn't like to invest in. Swimming in debt, earnings not growing. What's the catalyst to take it higher? A complete mess. Huge competition. Healthcare space is so tough. There could be value here, but he wouldn't recommend it to anyone.

Market getting tired of missed earnings estimates. Company having trouble keeping sales up across business lines. However, retail presence and business overall still presenting value. Is one of the strong remaining brands left in the retail health companies. If company does not do any more M&A, and keeps balance sheet strong - should be ok. Expecting higher earnings going forward. Will continue to hold.

Reported earnings, stock came down. Will remain in penalty box for a couple of quarters. In a good sector, but continues to make missteps. Value trap right now. Over time should trend back up to $70, but you might be waiting a while.

Gets lumped in with WBA, but they're different businesses. Not keen on either right now, but he'd have a slight preference for CVS, as he knows it better.

Stable, much more broadly diversified than WBA. Way ahead of the curve on getting into homecare. Becoming a one-stop, end-to-end healthcare business. Generating free, excess cashflow that they're using for acquisitions without having to issue more shares. Dividend is more than secure, seeing share buybacks again.

Is concerned, because it's faster for Amazon to deliver the same products that a CVS store can sell him.

Stock price has been run over, but not a quality name. Will probably be a market share donor to a high-quality name like UNH, which he owns.

Reported dreadful results the other week, he sold. Painful, but enough was enough. Promise of vertical integration making it a juggernaut just didn't happen. 

Have to get used to being wrong as an investor some of the time. It's what you do when you're wrong that's a big factor in your results.

It is getting squeezed even by grocery stores operating their own pharmacies. Their acquisitions don't work out and it would be better to pick a different pharmaceutical company.

Painful, he owns and is down, but believes in long-term value of the enterprise. CEO's done a reasonably good job. Margins have fallen back as people use the healthcare system more and costs escalate. Overpaid for recent acquisition.

Really great enterprise, reasonably low valuation, nice dividend. With a time horizon of 2-5 years, stock could potentially double. Doesn't deserve the hammering it's had from comparisons to Covid times.

Medicare side really squeezed on costs, government prices can't keep pace. PBMs are always a target in US. Always looks cheap, single-digit PE for a long time. Not interested.