I agree conceptually, fastmoney. But for some inane reason, WAG has of late been a market favorite despite strings of bad performance on earnings day.WAG is now a "core holding" for Wells Fargo. It apears that thepresent play on WAG is to buy on the bad earnings announcement day and sell just before. Check the charts for the last several quarters. CVS seems to trade in it's own predictable world. Streaky, and when it peaks, weakness evidenced by consistent market underperformances. TODAY there could be a significant market downturn so it is a pivotal day to judge CVS' strength and relative strength. Also, the next conference call will give an indication of customer retention BUT MOST IMPORTANT, a perspective for Caremark come "selling season." DO NOT FORGET, ON ONE SIDE THERE IS ESRX/MEDCO AND WAG v CVS standing alone on the other. Several big PBM contracts are temporarily safe but should ESRX be a decisive winner this season, CVS will face very strong headwinds at the Caremark level in years to come. JMHO and would love comments. Be well all, craig.
I say "hold" pending cc. Too chancy at $51