The shares of CVS Health continue to drop since early December. The slide in CVS’ share price accelerated following the company’s 2018 earnings report on February 20th. We remain positive on CVS in the long term. Following the $70 billion acquisition of Aetna, CVS is now one of the largest and most vertically integrated players … Read more
We took the recent weakness in CVS as an opportunity to bring our portfolio position up to 5%. The share price weakness resulted from a recent lackluster earnings report, as well the May 16th CNBC report that Amazon was “hiring a business lead” to help them break into the pharmacy market. After witnessing the devastation Amazon … Read more
CVS Health Corporation engages in the provision of health care services. The company operates through the following segments: Pharmacy Services, Retail Care, and Corporate. The Pharmacy Services segment offers pharmacy benefit management solutions which underpins the crux of our investment in the company. We previously owned CVS Health when it was known as CVS Caremark. … Read more
We added CVS Caremark to our portfolio in August 2011 and exited our position in Walgreen Co. in September 2011. Regarding CVS, we believed that the market was completely ignoring the value of company’s Caremark pharnacy benefit management business. Essentially, an investors was acquiring the retail pharmacy business at an attractive valuation while assigning no … Read more
CVS Caremark is the largest pharmacy care provider in the US and one of the largest pharmacy benefits managers (PBMs). One out of every five retail prescriptions written in the US is filled by CVS. We see CVS as an attractively valued investment with several tailwinds supporting future growth, including an aging population which means … Read more