Well I stated that the worst case scenarion would be WBMD touching into the low 13's but I definitely did not expect that to happen so quickly/abruptly. I was admittedly licking my wounds yesteday.
After further evaluation, I will continue to add in small, steady chunks as I still very much believe in their highly focused model and dominant position. The Pharmy's will no doubt shift a much larger percentage of their mega marketing $$ towards the internet and away from outdated media sources that possess declining eyeballs. I think there is good reason to believe that this temporary re-evaluation lag will begin to dissapate post election uncertainty. Most of the world's pharmy companies enjoy a tremendous long-term growth opportunity as emerging markets head towards being developed markets. WebMD easily has the leadership position and most qualified management to greatly capitalize on this inevitable trend. The only factor that would change my mind would be if insiders started dumping shares. Heavy insider ownership is key (and rare) as new strategic decisions will be made to benefit all shareholders in the long run.
how much are you factoring in tv ads that seem to be getting more frequent.ive seen nothing in big pharma to indicate they are getting great results or there futures are exciting,dont forget the limitations and surtaxes they agreed on in the obama care negotiations.it will be hard to get great growth unless they hit really big on a couple of rx everyyear,that hasnt happened in a while,i wonder if pharma starts to advertise on the net like car cos,pop ups and banners without the use of wbmd.just a thought,until than i woouldnt go near this til after the oct earnings are out i dont expect goodnews,in fact the co warned read theirstatement.than lets see iif ichan can do much,my guess is no,keep an eye on arbs,this is textbook fodder for them.