Do you think CVS will give WAG the same contract as ESRX. They may be forced to match ESRX offering. Should WAG walk away from CVS, they could lose ESRX/MHS/CVS(Caremark). 65 tp 70% of private pay market.....
IF WAG gets to mid 20s on bad news buy then, but right now too many issues.
Yes, but what you need to keep in mind is what drives the valuation on any security (in the long run) is EARNINGS, not sales. I don't want my Pharmacists scrambling around to fill scripts if there is no profit in them - as is the case with ESRX. I would rather loose 10% of the business and layoff 10% of the staff (to maintain the profit) and then grow back in other strategic areas. It is I believe what WAG is doing and it makes a lot of sense.
PS> WAG didn't get almost $20,000,000,000.00 in Retained Earnings by accident or luck. It was obtained but MANAGING through the twists and turns of the business environment. This will be no different in my opinion.