Why, Montana will:"Today will be a GREAT day for us Longs"
Good to have knowledgable discussions with people aware of the state of the industry. I agree that over the duration, AT&T does not change the "long-term point of view" ...but it would be sorely missed if lost. Worst yet, how will analysts look at the entire playing field if it becomes OBVIOUS that bidding to turn dollars (gross)and retain accounts has become the norm. Good point on mails and delivery costs....never factored that in. Another factor "out there" is rhetoric that a National health plan will nationalize the PBM industry into a "Division of Medicare" along with "National Healthcare Insurance." Although this is a way down the road, it sure is not "positive PR." I really see calPERS returning to the fold unless the WAG-Blue innovation carries over to California. CVS has a nice and growing presence in CA but never underestimate the historicity of WAG. I think the CVS/CMX deal was a huge "wake up call" for "the Slumbering Green-Machine." I would have preferred to keep that Green-dog sound asleep." It is not that CVS in unable to compete well with WAG, just that a sleeping and complacent WAG is far preferable to deal with. The WAG-Blue deal is "spooky." WAG/Illinois means MHS loses Illinois next go round. I think that is next year; early. MHS was the 2007 "shooting star." Shows how volitile this sub-sector really is- transition rules. In this, I like the agressive, cutting edge style of CVS but there is a growing gang of new players nudging into retail pharmacy and PBM---- like WMT, TGT, UNH, State combines, etc. I have long said the CVS deal was a good one for CMX as although the "run may not have been done," the feeding troth remained the same with about a dozen more cows at it. It will not be long (so I hear) that if you "pick up your mail order scripts at your local CVS" in a fast moving, pick-up mail order only counter, you will get a 5%(?) off coupon good the next time you visit the store. The announcement, soon to come pending finalized cost analysis, will hurt WAG-but how much will it help? Kind of a $4 generic PR move? Gotta love CVS for innovations. Over and out, Craig montana: how do you "FEEL" about tomorrow?