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CVS Health Corporation Message Board

  • cmc587 cmc587 Jan 2, 2013 8:54 AM Flag

    Testing CVS & underperforming market v WAG today!

    If the 2 articles I have been watching and discussing can be tested, today will be the day. Using the formula adjusted with momentum today shows that WAG will OUTPERFORM a potentially strong market despite a bad quarterly report; yet CVS, despite its best quarterly result on a decade and that OBcare will boost revenue at CVS more than WAG, STILL CVS WILL UNDERPERFORM THE INDICES, HEALTHCARE INDEX, WAG, and even RAD. I have tried to quantify this test going back more than 28 quarters. For this theory to apply as broadcast, CVS WILL HAVE TO BE 2,2 to 3x under DOW/SP and get walloped by WAG. Remember , the formula works INVERSELY to market so the better the market and WAG, the worse, COMPARATIVELY, CVS will do. I fully concur with the two or three other posters that CVS needs a runaway market over time to cross 50 as it cannot overcome resistance at 49+ due to too many questions like ESRX/MHS bidding contract wars ahead, WAG still seen as retail pharmacy "standard" regardless of results, details behind WAG/ESRX deal not public yet and especially relative strength issues , huge issue for CVS as opposed to WAG. CVS, as one writer so wisely put it, seems to be a solidly safe place to bury a few bucks. By the way, for CVS to break 50 and hold, the formula requires a 14,000 +DOW. Not going to happen in 2013 but the dividend should rise again. Best to all, Craig.

    Sentiment: Hold

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