All retail pharmacy companies are being Amazoned right now, because Amazon just announced that they want to apply for a pharmaceutical distribution license. The other problem with pharmacies is that back of the store revenues have started to decline. The front of the store has really fallen off the map. He is completely avoiding the retail sector.
It has been a soft performer (weak). There is a concern about AMZN-Q getting over aggressive over time on Pharmacy. But the business is not that simple and the retail chain adds a lot of value. The process is very efficient and they have a lot of buying power. AMZN-Q is absolutely a threat but if you look at the WBA-Q, a lot is baked in at today’s price.
It has been a soft performer (weak). There is a concern about AMZN-Q getting over aggressive over time on Pharmacy. But the business is not that simple and the retail chain adds a lot of value. The process is very efficient and they have a lot of buying power. AMZN-Q is absolutely a threat but if you look at the WBA-Q, a lot is baked in at today’s price.
There has been a lot of outside pressure in the space. It is more about what people think is going to happen but hasn’t actually happened yet. It looks quite cheap.
There has been a lot of outside pressure in the space. It is more about what people think is going to happen but hasn’t actually happened yet. It looks quite cheap.
The movement into pharmacies is great, as the baby boomers need more pills. He understands that once a pharmacy gets a prescription coming into the store, those customers stay. This is a great global play. It’s the largest pharmacy in the US and has one of the largest in the UK. The stock has not worked, because there are just too many moving parts, but it does make sense in a longer-term basis.
The movement into pharmacies is great, as the baby boomers need more pills. He understands that once a pharmacy gets a prescription coming into the store, those customers stay. This is a great global play. It’s the largest pharmacy in the US and has one of the largest in the UK. The stock has not worked, because there are just too many moving parts, but it does make sense in a longer-term basis.
(A Top Pick Sept 7/16. Up 0.47%.) It hasn’t done much over the past year in light of some of the competitive pressures in the industry and some of the overall challenges. He continues to own this, because they have a visionary leader with a very articulate intelligence strategy of how to create value, and they are good with capital allocation. This is ultimately going to be recognized by people throughout the chain.
(A Top Pick Sept 7/16. Up 0.47%.) It hasn’t done much over the past year in light of some of the competitive pressures in the industry and some of the overall challenges. He continues to own this, because they have a visionary leader with a very articulate intelligence strategy of how to create value, and they are good with capital allocation. This is ultimately going to be recognized by people throughout the chain.
Not that familiar with this, but it is in the right industry of drug distribution and getting product to people in their homes. There are 2 different businesses. You have the US business where you have healthcare insurance companies controlling the price and distribution. In the UK, you have a national government system. Retail distribution systems are under pressure globally, and these companies are trying to move into other businesses. He wouldn’t want to take the risk of being there while they are doing this transition.
Not that familiar with this, but it is in the right industry of drug distribution and getting product to people in their homes. There are 2 different businesses. You have the US business where you have healthcare insurance companies controlling the price and distribution. In the UK, you have a national government system. Retail distribution systems are under pressure globally, and these companies are trying to move into other businesses. He wouldn’t want to take the risk of being there while they are doing this transition.
This has been a disappointment. They are facing the back of the store challenge, in terms of a mix towards generics, a lower margin business than the pure pharmaceutical. Counteracting that are demographics. People are getting older, and as they get older they take more pills. There is also the Amazon affect with the e-commerce model affecting retailers. He doubts Amazon wants to get involved with a regulated environment. Longer-term, he thinks these are very good franchises. Earnings continue to do well. (See Top Picks.)
This has been a disappointment. They are facing the back of the store challenge, in terms of a mix towards generics, a lower margin business than the pure pharmaceutical. Counteracting that are demographics. People are getting older, and as they get older they take more pills. There is also the Amazon affect with the e-commerce model affecting retailers. He doubts Amazon wants to get involved with a regulated environment. Longer-term, he thinks these are very good franchises. Earnings continue to do well. (See Top Picks.)
Battling to buy Rite Aid (RAD-N) and are coming up with some pressure and push back. He prefers CVS (CVS-N) on a relative valuation. Trades at a premium to CVS, so he would wait for some sort of pullback. If the Rite Aid deal falls through, he presumes Rite Aid shares would fall off, which would be a good time to purchase the stock.
Battling to buy Rite Aid (RAD-N) and are coming up with some pressure and push back. He prefers CVS (CVS-N) on a relative valuation. Trades at a premium to CVS, so he would wait for some sort of pullback. If the Rite Aid deal falls through, he presumes Rite Aid shares would fall off, which would be a good time to purchase the stock.
Thinks the market has soured on this company because of their exposure to Britain, which is in the middle of BREXIT. He likes this company. It’s a good story, because they have a very high free cash flow yield, which leads to dividend increases. Not a bad stock to look at.
Thinks the market has soured on this company because of their exposure to Britain, which is in the middle of BREXIT. He likes this company. It’s a good story, because they have a very high free cash flow yield, which leads to dividend increases. Not a bad stock to look at.
(A Top Pick April 20/16. Up 7%.) This has been fine. It hasn’t been an unbelievable return, but when looking at how it has done relative to many of its peers, it has actually been fairly solid. Feels managements’ strategy is sound.
(A Top Pick April 20/16. Up 7%.) This has been fine. It hasn’t been an unbelievable return, but when looking at how it has done relative to many of its peers, it has actually been fairly solid. Feels managements’ strategy is sound.
(Market Call Minute.) Prefers Amerisourcebergen (ABC-N) because of their distribution of drugs, as opposed to the bricks and mortar retail outlets of this company.
(Market Call Minute.) Prefers Amerisourcebergen (ABC-N) because of their distribution of drugs, as opposed to the bricks and mortar retail outlets of this company.
There has been a lot of work done on the merger with Rite Aid (RAD-N). Should it go through, it becomes a management and operation that has a lot of levers. He thinks we have seen the secular low in rates and that is going to be a headwind for them. Along with the synergies that they will get out of the deal, there will be execution risks. Unfortunately, on the drug distribution and pricing side, there is little headwind there as well.
There has been a lot of work done on the merger with Rite Aid (RAD-N). Should it go through, it becomes a management and operation that has a lot of levers. He thinks we have seen the secular low in rates and that is going to be a headwind for them. Along with the synergies that they will get out of the deal, there will be execution risks. Unfortunately, on the drug distribution and pricing side, there is little headwind there as well.
He thinks there is a future to it and holds it. There are concerns about how Obamacare will transform under Republicans. Two thirds of revenue is coming from pharmacy and one third from front store. He also has CVS-N. Be patient with it.
He thinks there is a future to it and holds it. There are concerns about how Obamacare will transform under Republicans. Two thirds of revenue is coming from pharmacy and one third from front store. He also has CVS-N. Be patient with it.
She would prefer CVS (CVS-N), especially given the pullback they’ve had. CVS is trading at a more attractive valuation, and feels they can turn themselves around and get growing again in 2018.
She would prefer CVS (CVS-N), especially given the pullback they’ve had. CVS is trading at a more attractive valuation, and feels they can turn themselves around and get growing again in 2018.
(Top Pick Sep 7/16, Up 3.27%) Not a lot has changed. It is a steady business that is doing a lot of things right. They turned over 40% of their supervisors in North American stores. He thinks it will result in sustainable margins.
(Top Pick Sep 7/16, Up 3.27%) Not a lot has changed. It is a steady business that is doing a lot of things right. They turned over 40% of their supervisors in North American stores. He thinks it will result in sustainable margins.
All retail pharmacy companies are being Amazoned right now, because Amazon just announced that they want to apply for a pharmaceutical distribution license. The other problem with pharmacies is that back of the store revenues have started to decline. The front of the store has really fallen off the map. He is completely avoiding the retail sector.