CVS

[Art G]

I'm looking at the chart of CVS and while it seems it may be just a tad early, this just looks like a great company to own for the future. I may wait for a pullback to around $35, or I may just start buying a little bit now. JMO. Do your own homework though. Currently $37.99

 

[CitricAcid]

I agree 100%... not even sure about the pullback to $35.00. Without doing any technical analysis (which I know very little), their financial statements speak testaments to how well they are doing in their sector, especially in the troubled economy.

Their acquisition of Caremark helped add significant market share, and they have recently passed (in the last 18 months) Walgreens in yearly revenue. They have the most pharmacies in the country after their freestanding Osco/SavOn acquisition from Albertson's. They average a 20% net income growth over the last 3 years, and trading at a 19 P/E, it seems like the P/E has upward mobility considering their proven record of growth. The dividend is fairly weak, but they have established a record of being able to pay an increasing dividend over time. Their revenue alone from FY '06 to FY'07 jumped almost 70%. I definitely like them for a long term (3-4 years) play, especially as they have pulled off of their $44 range of a couple of months ago.

In other words, they posted earnings, beat expectations, raised dividend and their price went down. I don't think that will last.

 

[Orchidflower]

I just completed a study of CVS. However, be aware that Walgreens--feeling the hot heat of competition down their neck--has recently made some plans to improve their stores. This will be interesting, but, myself, I am a BIG CVS booster and probably will breakdown and buy, too.

 

[Art G]

A day early perhaps?

 

[Art G]

I should have waited until it hit support and held around $34.69

 

[thefed]

why so

 

[Art G]

Cause that would be cheaper?

 

[thefed]

oh i misunderstood your post...didnt see that it actually hit 34.xx...i wasnt looking at intra day #s

 

[Art G]

No, it hasn't reached that price yet. I may be glad I didn't wait, but over the long haul, in most cases I'd rather miss out on buying something than to consistently pay more than I have to.
Loss of opportunity is much better than loss of money. JMO

 

[thefed]

gotcha.

 

[Art G]

Well this may be the reason CVS drops to support...

08/12 04:40PM CVS Caremark Corporation to Acquire Longs Drug Stores Corporation --Provides Outstanding Store Network in Highly Attractive Central and Northern California and Hawaiian Markets-- --Broadens CVS Caremark's Geographic Footprint Facilitating Roll-Out of New Proactive Pharmacy Care Offerings-- --Expands CVS Caremark's Position as the #1 Provider of Prescriptions in the U.S.-- WOONSOCKET, R.I. & WALNUT CREEK, Calif.--(BUSINESS WIRE)--August 12, 2008-- CVS Caremark Corporation (NYSE: CVS) and Longs Drug Stores Corporation (NYSE: LDG) today announced that they have entered into a definitive agreement under which CVS Caremark will acquire Longs for $71.50 per share in cash for a total purchase price of $2.9 billion including the assumption of net debt. Through this acquisition, CVS Caremark will acquire Longs' 521 retail drugstores in California, Hawaii, Nevada and Arizona as well as its Rx America subsidiary, which offers prescription benefits management ("PBM") services to over 8 million members and prescription drug plan benefits to approximately 450,000 Medicare beneficiaries. The addition of Longs' valuable store locations in Central and Northern California, Hawaii, and Nevada will provide CVS Caremark with substantial market positions in these highly attractive, fast growing markets. Further, the acquisition complements CVS Caremark's substantial presence in Southern California and provides a foundation for significant future growth throughout the nation's largest state. The transaction also offers CVS Caremark immediate market leadership in the highly attractive Hawaiian market, where it currently does not have a presence, as well as high-quality locations in Nevada and Arizona.

 

[CitricAcid]

Not sure how this will play out but it will sure dry up some of those available funds... I don't know enough about Longs Drug Stores Corporation.

 

[Art G]

About Longs Drug Stores

Headquartered in Walnut Creek, California, Longs Drug Stores Corporation
(NYSE: LDG) is one of the most recognized retail drug store chains on the West
Coast and in Hawaii. The Company operates 521 retail pharmacies and offers a
wide assortment of merchandise focusing on health, wellness, beauty and
convenience. Longs also provides pharmacy benefit management services and
Medicare beneficiary prescription drug plans through its wholly-owned
subsidiary, RxAmerica, LLC. Additional information about Longs and its
services is available at Welcome to Longs Drugs and more information about
RxAmerica is available at RxAmerica.com : Prescription Benefits Management - PBM.

 

[popowich]

I have not looked at their financial statements, but I can say that it is a place where women like to shop. There is a CVS near my house. I had never shopped there until my female housemate had dragged me in a couple times. Their shoppers appear to be 90% women. There is a convenience factor too since they are closer to home than other pharmacy's. I'm a believer in buying what you understand. If they have a plan to cater and target women, and make things in addition to picking up prescriptions and photos convenient, it seems like they would have a good thing going for them.

-Raymond