More CVS
More CVS
The other day I scrounged up enough money to make another purchase. Cvs fell another $5 a share since my original purchase of them. The fundamentals are the same but recently there’s rumors of a acquisition. One that could really strengthen the company even more. I decided to add another 14 shares for a all in cost of 69.06 usd each.
Since I did a post with my last purchase 2 weeks ago I wont get into much details about cvs much. Check out the other post here
The stock has declined further on a report that amazon now has received pharmacy-wholesaler licenses in 12 u.s. states. It could also have something to do with the news that cvs is attempting to acquire Health Insurance Juggernaut Aetna for 66 billion. The price they are willing to pay seems high but dam if it go’s through cvs is really going to have some nice synergies and a great hold in the space.
I read a article the other day (sadly I cant find it) but it showed a couple companies that previously acquired health insurance companies. Those stocks have all returned some massive gains since the acquisition.
I like what cvs is doing, and approve the buy if it go’s through. The move by walgreens to takeover rite aid will move cvs into the 2nd biggest pharmacy chain now though. Although they say they would close down 600 rite aid’s which might help cvs as well.
In a market that is full of record high prices and extremely high p/e ratios, CVS seems like a screaming buy. If you are worried about amazon some analysts believe it would take amazon 10 years just to get 10% market share. This buy adds $28.00 in forward dividends to our portfolio and increases our average yield on cost.
What stocks are you currently watching or buying?
Cheers
Hey I’m Rob, creator of Passive Canadian Income.
In 2011 me and my wife had almost $60,000 in debt and a negative $7,000 Net Worth. Through hard work and financial education we paid all that off. Now we are focusing on increasing our Passive Income Streams to make the money work for us. Feel Free to Follow along the Journey by clicking the Social Media links below or subscribing to get notified of new posts on the sidebar.
I like the CVS purchase, I think it’s a good decision. I also bought some more CVS not too long ago. Interested to see where this Aetna acquisition will go.
Hey Dutch. Thanks and congrats on your purchase as well! The buy would be interesting.
PCI –
You weren’t kidding! Nice job walloping in another 14 shares, this will add a nice bang to your dividends going forward. Agreed, AETNA will be a massive deal if approved. Interesting to get into the insurance landscape and cut down costs. Very interesting indeed.
-Lanny
Hey Lanny
Thanks alot. Sometimes the market like to throw ya a bone! Luckily i had some $ to take advantage. Cheers
There is the amazon effect to consider. But, generally CVS seems quite good. CVS seems to be having robust customer presence. AET purchase might help them too. Good buy!
Thanks geek! Im a fan.
I added myself 16 shares on Wednesday… this will average down my total cost to $71. I also believe that is a good company to have in your portfolio. These days is really hard to find some decent valuations.
I was looking to Foot Locker (FL) and Nike.
Also I added some Enbridge at $47.8.
I am not sure how many people borrow money to invest but, this strategy is called Smith Manoeuvre.
Does anybody else use it?
Also, what about Cash Damming strategy?
Hey Cris never heard of cash damming. Nice getting that average cost down. Enbridge is tempting as well as enf but currently enbridge is 12% of my portfolio. So im trying to get that number down or else id be averaging my cost down.
I don’t own CVS PCI but seems like you made a good decision adding more shares to your existing portfolio. It’s a popular stock in the DGI community.
Thanks port. Always nice dollar cost averaging down.
Nice pick up. Always a good thing to average down on cost in a stock you like long term. I don’t hold any CVS but I know it’s been quite popular as of late. A lot of interesting things going on in this space which involves, AMZN, CAH, ABC, MCK and more. Love to see the buying continue!
Hey div. Yeah for sure things are changing. Cheers
Hadn’t really considered CVS before, but will be looking into a bit more now. It is fun to see some decently valued companies in this high priced market.
Scott
Hey Scott. Its true value is hard to find currently. Especially for great companies. I think cvs represents a great company at a great price atm. Cheers!