Why hasn’t CVS fired Larry Merlo!?
Started by BMBiology
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Buying opportunity! The company overall is still doing well. Aetna hasn't even been integrated yet... just wait until that happens! Look at United Healthcare in comparison (compare their market caps!!!)... this is where CVS is headed. Retail is still making the big bucks, recent cost cuts will ensure that continues.
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Their job is to increase shareholder value. Last fall the stock was over 80, now it is below 60 and still falling. A couple of years ago the stock was over 110. I do wonder what is happening behind the scenes, weaker chains are going out of business and the strong are struggling.
All Healthcare stocks are taking a bath right now due to potential risks related to the Medicare for all bill that was proposed this week.
Walgreens and CVS are headed in the same direction as did Walmart and Kmart back in the nineties. It appears that Walgreens is ahead in the game but I'd give it four or five years and we'll see an a conclusion to this battle. Both retailers are commoditizing the pharmacy business by competing with each other. At one point, regulators will have to kick in because pharmacists do not sell low priced bags of potato chips. They dispense medicine.
I remember I just got out of school when the stock was at 110, and my DM says to me, "just you wait, in five years it'll hit $200." I think he was hoping it would hit that so he could cash out and retire. Ironic part is he was fired shortly after
I think WBA is in trouble. CVS will be fine.
Nice of you to join us, Larry.
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From the first season of "Elementary":
Sherlock Holmes: You, sir, are a sociopath.
Jim Fowkes: You think there's a sociopath working for us? Let me let you in on a little secret, Mr. Holmes: we're all sociopaths.
That was the joke, though - they're all combined together in the boardroom. I should have set it up better. It goes along with the article you quoted.
I wish... dude is the highest paid CEO (greatest CEO:lowest employee pay ratio). Not a fan of their cost cutting measures, but the business is sound
CVS continues down this path eventually people will stop using their pharmacy. Many more lawsuits will ensue. If they dont have scripts to fill, none of this stock and profit nonesense will matter. As I said in other threads, now is a good time to get into independent pharmacies.
