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CVS Health Corporation Message Board

  • wildbill15 wildbill15 Feb 16, 1998 10:08 PM Flag

    foxxygramps and makeup

    Dear Foxxygramps:
    You sound like a Peter Lynch man: buy what you know. I admire that philosophy myself. My question was why would you buy a round lot at 75 x earnings. That's alot of makeup and store makeovers. By the way, aren't grandkids great? Have a nice day.

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    • does anyone think cvs has the fundimentals to hit the $80-90 range after the Arbor Drug merger?


    • I agree that there is room to grow. My concern is that CVS becomes a market darling and any short fall in earnings will
      result in the stock getting hammered. With 4100 stores and 15 billion in sales, I haven't done the math to figure out sales per
      store and net profit margins to put an accurate multiple on the stock. Do you know what 98 projected earnings are? I have no idea
      since I don't follow the company. I own Walgreens and I know the valuation has always been high. It seems the market is willing to
      place a premium on great companies of which both WAG and CVS, in my opinion belong.

    • Gcassar, I'm trying to remember just how much CVS was at the time of the merger..I think it was just a few dollars more than Revco...Here's a question about they pay a dividend??? When the merger took place with CVS & Revco I also started receiving a dividend which I didn't have with Revco. As far as CVS being a $100.00 stock, I feel that is a reachable number...I have heard only positive things about CVS for a long time.
      Good Luck

    • Seeings how Arbor has pretty consistently doubled in price each year for the past two years at least, I hope that CVS will be at or near 100. But whether that happens or not remains to be seen. Anyone else have any thoughts???

    • Jaybuddy, you are correct. You did get a good deal with Revco if you bought it at $39 and received 88 shares of .88 shares of CVS for each share of Revco. In essence, you made almost a 60% return on your money with CVS at $73. Unfortunately, I don't see Arbor getting the same deal since we will most likely get .33 shares of CVS for each share of Arbor and CVS is about 3 times the price of Arbor. The trade seems too even. Where was CVS at the time of the trade for Revco?

    • After the Arbor Drugs merger, does anyone have a guess what
      CVS will be at in July-August.


    • I agree with your dislike of wild P/E ratios. The paper on this company is all rated high, though, and they seem to be able to digest other companies and pay down debt. My grandkids are much more expert on stores than I am. One recommended Dayton Hudson when it was down, and since it has more than tripled, in a fairly short time. And I do like Peter Lynch. And grandkids.

      • 1 Reply to foxxygramps
      • Does anyone know fro sure when this stock is going to split? I have heard that it is scheduled to split 2 for 1 when it reaches 76 but that may be just a rumor.

        Also, I have a friend that has been working for CVS/Revco for over three years now (that's longer than anyone else in the
        store besides the pharmicist) and since the buy out, CVS will no longer let her buy into the stock plan because she is a full time
        student and part time employee. She has been buying Revco stock from the company for 2 years now and its kinda frustrating now that
        she has lost that privelidge. Can anyone out there tell me why this is or possibly who she can talk to in order to bypass this


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