This company is an excellent performer but is priced for perfection. As long term care facilities continue to get lower reimbursements from medicaid this industry's margins will be squeezed. Many communities such as Maricopa county are setting up direct distribution facilities to lower the cost of medications to their citizens. I think this sucks and will eventually fall apart but in the short term we all better be careful. Now go ahead and slam me as a shorty.
Let two words guild your investment decisions relative to CAH:
I don't dispute the medicaid reimbursement point you make, however, the boomer bubble will propel this company's earnings for years to come. This is only the beginning of what will prove to be an unbelievable long term run.
I am looking forward to attending the stock holders meeting on Wednesday morning. Got to imagine mgt will be grinning from ear to ear as the stock is close to hitting a 52-week high.