CVS Health (NYSE: CVS) Archives

Will CVS-Aetna Make Money?

The financial data indicates that CVS-Aetna will probably make money. For example, Aetna reported a gross profit of $4.5 billion on revenues of $15.561 billion for 2nd Quarter 2018.

In addition, CVS Health recorded a gross profit of $7.201 billion on revenues of $46.78 billion for 2nd Quarter 2018. Therefore, CVS-Aetna could generate a quarterly gross profit of $11.7 billion and quarterly revenues of $62.341 billion.

However, CVS Health recorded an operating loss of -$1.590 billion and a net loss of -$2.563 billion for 2nd Quarter 2018. Meanwhile, Aetna recorded an operating income of $1.684 billion and a net income of $1.212 billion for 2nd Quarter 2018.

Thus, cynics will argue that CVS is trying to cover its losses by buying Aetna. This argument is unconvincing because Aetna-CVS could make an operating income of $94 million and a net loss of -$1.351 billion.

Hence, CVS-Aetna will lose money with the financial numbers both companies reported on June 30, 2018. That makes CVS-Aetna a very dubious stock from a value investor’s standpoint.

Grocery Wars

daniel October 24, 2018 Apple Pay at CVS, Apple Pay at CVS 7-Eleven, CVS Health (NYSE: CVS), CVS Health and 7-Eleven Surrender to Apple Pay, Square and Cryptocurrency, Square likes Apple Pay and Google Pay, Square’s (NYSE: SQ) new point-of-sale device (POS) Terminal will accept NFC payments., Terminal, The Challenges for Square and Terminal

Apple Pay at CVS, 7-Eleven, and Square

Entering CVS Health (NYSE: CVS) is a major coup for Apple Pay, because CVS operates 9,000 pharmacies and 1,100 Minute Clinics. Moreover, CVS Health is a major prescription processor that is acquiring the health insurance giant Aetna (NYSE: AET).
News reports did not say if the CVS Health pharmacies in Target (NYSE: TGT) stores will accept Apple Pay. Like, Walmart and Kroger (NYSE: KR) Target has been a notable Apple Pay holdout.
In addition, convenience store operator 7-Eleven will accept Google Pay and Apple Pay at its stores. 7-Eleven is accepting NFC payments , Retail Dive reports. However, Retail Dive did not say if 7-Eleven gas pumps will accept NFC payments.
Importantly, 7-Eleven operates nearly 8,000 stores nationwide. Acceptance by 7-Eleven is important because it shows working-class accept of mobile payment. To clarify, most of 7-Eleven’s customers are working-class Americans with limited incomes.

Opportunities

daniel July 19, 2018 A New Business Model for American Healthcare, Aetna, Aetna Inc. (NYSE: AET), Are CVS and Aetna Afraid of Single Payer Health Insurance, Cash is why CVS Wants Aetna, CVS Health (NYSE: CVS), How CVS and Aetna plan to Cash in on Medicare for All, Is Aetna a Value Investment?, Is Aetna on the Verge of Collapse?, Why Medicare for All Scares Aetna and CVS

Is Aetna on the Verge of Collapse?

An obvious conclusion here is that Aetna executives are afraid their business is about to get banned or nationalized. Therefore they are trying to merge with a company, that will not be CVS.

One obvious hope at CVS is to create a lower-cost healthcare model designed to limit demands for single-payer healthcare. Single-payer healthcare means total nationalization of health insurance.

Market Insanity

daniel July 17, 2018July 21, 2018 Aetna (NYSE: AET), Amazon (NASDAQ: AMZN), Are Amazon and Berkshire Hathaway planning a Retail Alliance, Berkshire Hathaway (NYSE: BRK.B), Can CVS Compete with Amazon, CVS Health, CVS Health (NYSE: CVS), Is CVS a Value Investment?, Is CVS Health Making Money?, Is CVS Making Money?, Medicare for all Threatens CVS Health, Why is CVS not making that much Money?

Is CVS Health Making Money?

The idea is to create a private enterprise that functions something like Britain’s National Health Service (NHS). That is one stop shopping for all your health insurance and healthcare needs. The NHS operates hospitals and provides health insurance in the United Kingdom.

CVS is more like the NHS than many people think; it already operates more than 1,100 MinuteClinic walk-in healthcare facilities, for example. There are MinuteClinics in 33 states and the District of Columbia that have received more than 37 million visits.

Grocery Wars

daniel October 30, 2017 Aetna (NYSE: AET), Amazon (NASDAQ: AMZN), CHIP, CVS Health (NYSE: CVS), CVS’s Aetna acquisition, How Congress Threatens Walgreen’s Future, How Much Cash does Walgreens Have?, Is Walgreens a Value Investment?, It is Not Amazon CVS is afraid of its Single Payer, Kroger (NYSE: KR), large numbers of Walgreen and CVS locations will shut down, Medicaid gets defunded, Medicare, Medicare for All, Obamacare subsidies for insurance, Rite Aid (NYSE: RAD), Single Payer Health Insurance, t single-payer healthcare is coming to America, Walgreen Boots Alliance (NASDAQ: WBA), Walmart (NYSE: WMT), Why Drugstores cannot make Money, Would Single Payer be Good for Walgreens (and CVS)

Walgreen Boots Alliance Struggles to Survive

Medicare for All would be a boon for Walgreens by financing millions of new pharmacy customers and creating hundreds of thousands of new customers for its in-store clinics. That alone makes WBA a really good value investment to add to portfolios for the future but is it a value investment for the present.

Therefore a good wa

Opportunities

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Can Amazon Stop Growing?

Amazon’s revenue growth for 2016 now exceeds the total revenues for Alibaba (NYSE: BABA); which reported $21.48 billion in revenue on December 31, 2016. The revenue Amazon added in 2016 is also larger than all of Macy’s (NYSE: M) revenues; which were $26.31 billion on October 31, 2016.

Market Commentary

daniel January 16, 2017January 23, 2017 Amazon (NASDAQ: AMZN), Are Price Controls Hurting Walgreens?, Can Anybody Make Money in Drugstores?, CVS Health (NYSE: CVS), high operating costs, How can Walgreens Increase Revenues, Is the Amazon Effect hitting Walgreens?, Kroger (NYSE: KR), Rite Aid (NYSE: RAD), Rite Aid has No Float, Rite Aid’s Revenues Dropping, Walgreen and Rite Aid, Walgreens Boots Alliance (NASDAQ: WBA), Walmart (NYSE: WMT), Will High Operating Costs Doom Walgreens?, Will Robots Save Walgreens?

Why are Walgreen and Rite Aid’s Revenues Dropping?

Rite Aid reported revenues of $32.64 billion in August 2016 that fell slightly to $32.57 billion in November 2016, Ycharts data indicated. During the same period in 2015, Rite Aid’s revenues grew by $1.46 billion; rising from $27.85 billion in August 2015 to $29.31 billion in November 2015.

Long Ideas

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CVS Health Profits from the Centralization of American Healthcare

The growth of CVS Health seems to verify one of my pet theories: the US healthcare system is steadily centralizing and consolidating. Companies like CVS are laying the groundwork for a centralized national single-payer healthcare system whether we want one or not.

Opportunities

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Is Right Aid Really a good Investment for Walgreen?

Rite Aid’s appeal to Walgreen Boots Alliance can be summed up in just word: revenue. Walgreen gets an extra $32.64 billion in potential revenue; for an investment of just $9.14 billion, which sounds like a pretty good deal to me.

Opportunities

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CVS Health is a Revenue Generating Machine

Naturally some people will be wondering if CVS is the best retail stock out there today because it seems to be both deflation and Amazon-proof. The answer is maybe because I think this company is a little overpriced, it was trading at $88.99 a share on September 30, 2016.

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