You missed my point. Forget about the split, if the stock price declined to $65/sh the dividend yield would be around 2.1%. I was just pointing out that they have a dividend policy that results in a $1.40 payout and that payout is divided by the price to get the yield. The higher the price the lower the calculated yield. So I'd trade price growth for dividend yield.
Keep in mind that the same $1.40 div would be a 2.8% yield on a $50/sh stock, unfortunately it's only a 1.5% yield on a $94 stock. Also keep in mind that they have $12.5b approved for stock buybacks(almost 12% of market cap) which is also returning cash to shareholders and is not taxable.
Clone if you bought 1000 shares of WAG that day and shorted 1000 CVS you'd be down $6000. The spread has gone from $15 to $21. Your portfolio must look like wartime Bosnia
If you think this is a low p/e you must be living in the lost city of atlantis because while there is still a nominal "P" there is no "e". the projected cash flow they have been promising was supposed to kick in from all these marketing arrangements a year ago(and hasn't) "but" they're still working them out. you can hope those deals work out but you know they pay interest everyday on that debt . this stock is an option by itself, no reason to pay option premiums on short term plays as there will be no numbers until march '15.
No way. Caremark is part of CVS and they may have the federal insurance contract for prescriptions but they can't steer people to CVS retail. You may be limited to using CVS/Caremark for mail order though.
dopey people like clone can't use tax write-offs unless they have gains. he'll pass away with all those accumulated losses.
lucky day, clones tin cup got enough dimes tossed in, he has internet access back!
Well it is pretty #$%$ apparent that they use "fuzzy accounting". They say GAAP doesn't accurately reflect their business. There's no catalyst for this stock, they won't have a loss/"earnings" report for several months. They cancelled the investor call to explain how their "QMA's" work and only booked $5mm of the $50mm they said was in the bag for 2014 with most of that supposedly coming in 3q. New plan is to grow earnings through headcount reduction, always a sign of a good growth company (not).
read the conference call transcript, excuse after excuse. not one paragraph without an excuse. we spent money and think we will make money some day...we thought we had $59mm in ebitda from QMA's, but we only booked $5mm but we hope that's going to come next year. the cash flow doesn't come and the debt doesn't go away
I don't know about "oversold reaction", I think you have a lot of tired investors. This stock IPO'd a year ago ($13)based on a set of projections that are unrecognizable in any form today.So the $260mm they took in in Oct.2013 is now worth about $80mm and the net debt has increased by about $225mm. Maybe it will be a good "bounce play" but I think it's a blind spec.
by the next earnings report pro-forma adjusted ebitda will be = to revenues, they will just keep excluding more and more categories of expenses
So shop at the grocery store. I'm sure the stock clerk went right to the CEO with your insight. They don't make a lot of money in the front of the store, it's all in pharmacy. The front of the store will never be the reason to go to a CVS.
Since we traded above $90 intraday I would expect to hear from clone14 as to how we can't hold $90, I mean $80, I mean$70, I mean $60, I mean $50, I mean $40. Hard to keep up with his tips.
I read the transcript of the earnings call. They plan to get the dividend payout ratio to 35% by 2018 so they base it on that calculation not yield. They increase cash back to shareholders when they have excess free cash flow through stock buybacks. I don't want to see them doing anything just because WAG does. I wouldn't be surprised if WAG cuts their dividend once they take on AB and figure out their own financials(which they haven't been able to do).CVS is a well run company and remeber the yield would be higher if the stock price was lower.
Thank the lord CVS is not WAG, have you checked the total return between the two co's over the last 1,3,5 years?
"as a shareholder". You're not a shareholder, you're a trader. Co's whole business is their core business including payment systems as some forms of payment affect profitability. as you "trade in and out" I hope you don't use a full commission broker as there are cheaper options.