Story sounds similar- Executives getting investigated for fraud with hyping earnings although Omnicare was going down the drain. Stock starts to slip....stores start to close....now PBM getting investigated in multiple states for spread pricing. Don’t listen to the hype. Read the news about the company from Ohio, Arkansas, and other states. It’s easier to find another job when you have one...start looking because this ship is going down like the Titanic.
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@Y5zT9xR-2aad Let’s just agree to disagree. I am not one to fight. I respect your opinion, I just see things as not so great right now. Besides corporate is very good at keeping things quiet and making a rainy day look Ike 72 degrees and sunny. For the record I am not the one who posted the list of “facts”. While I do agree with those facts I did not post them as I chimed in after they were posted by someone else. So yes please have a nice day yourself! We’ll all just have to wait and see what happens, but 2019 looks to be an interesting year for sure!
Ok final lesson Chicken Little. I appreciate that you acknowledge that the sky might not be falling.
For clarification, I never said things are rosy. I am simply pointing out that a set of points don’t equal doomsday.
The reason that the stock dropped is that the guidance that CVS gave to investors, was less than they expected. This guidance is to say how much each share will pay out in dividends. It was less than expected, so the stock dropped.
Guidance was less than expected because CVS doesn’t intend to “cut” anything. It intends to put free cash flow towards debt instead of paying out to investors. The stock drop is because the company is being transparent and conservative, not shady. They are doing exactly the opposite of inflating earnings.
Once the dust settles and the finance team can get a better handle on the financial benefits of the 2 companies , including things they haven’t even imagined yet, they will likely sharpen the guidance. There is already an investor conference in June to discuss.
Finally , I hope that a seed has been planted and a huge new tree grows from the combined companies.
Have a prosperous year!
Just remember that acorns that fall to the ground can get buried and grow into large trees! So small things can over time turn into big things. Cvs is facing pressure from many angles, so while the sky might not be falling it certainly is NOT blue! Example: We were told by CEO that 2019 will be a rebuilding year. What if 2019 turns out to be MORE of a rebuilding year than initially thought? Then what? Remember too, that corporate wants to cut all Aetna debt by 2020. That’s a lot to cut in only one year. Where might those cuts come from? And we were told by corporate that the merger would be finalized before thanksgiving 2018, and yet here it is 4 months later and the court review goes on. YES the sky might not be falling you might be right, but things aren’t as rosy as you make them out to be.
Chicken Little your ignorance is showing again...... while it IS bad for the individuals in Tenn.
Those decisions were made during budgeting in the 4th quarter. Not because of the stock price or lawsuits or anything of the sort. It is another acorn. Might be a pine cone.
Again , your interpretation based on your limited view shows those in the know , that you know nothing. Problem is ... many people who sign in here have a limited view as well so you might scare them with your conspiracy theory.
Go find Foxy Loxy and see if he believes the sky is falling.
For those that think CVS is so great and everything is fine here... Just ask those 250 in that call center down in Nashville who are getting laid off and the call center is closing. How great is Cvs for them? This is only the beginning, trust me there is more to come. And those class action lawsuits are gonna cost corporate BIG time!
Reading the news and interptretibg it as doomsday are 2 different things.
The original comparison to Rite Aid is comical.
The person who listed their “facts” is clueless.
Just one example for fun:
All stores that closed we’re losing money and their lease was up. This happens every year. This is a fact. It happens every year. Every single year. A FACT that the poster doesnt know.
The poster who interprets this is Chicken Little. It is an acorn. The sky is not falling, he just interpreted the news wrong.
I cannot wait until people read the news on this sight....however based on their rhetoric that will probably never happen.
Fact: I am erect.
Fact: You didn't need to know that.
Fact: You can't forget it now.
Fact: an acorn hot Chicken Little(you) on the head.
Fact: you thought the sky was falling.
Fact: it was an acorn.
Fact: there is a class action lawsuit against the company for inflating earnings related to Omnicare
Fact: Stock is getting hammered and stores are closing
Fact: Caremark billed the state of Ohio over $200 million more than it paid U.S. Pharmacies for d--gs-there is currently litigation
Fact: Caremark caught billing the state of Arkansas prison system sometimes 10x more than they paid to U.S. pharmacies for the d--g
Fact: CVS claims it pays its store the same amount for rx’s and it has been disproved
Fact- Ohio, NY, NJ, Arkansas, and Pennsylvania have found inconsistencies with Caremark billing practices for state plans
Fact: The big 3 PBMs have been called to testify before Congress on d--g pricing
Fact: None of the services of the HUB provide anything different than already being offered except they are under one roof
Fact: CVS stock is one of the most shorted stocks on the NYSE and the debt load is so heavy with Aetna that if the PBM revenue stream is cut the company will be hurting
To the individual that referred to scripts and sales. Our script budgets in my region were cut substantially bs. LY, so are we really that strong? Before you comment, look into the “facts”
Sales and scripts are strong. People pull “facts” from the air and spread them on these sites. The Aetna deal is to strengthen the company.
Chicken little was wrong too. The sky isn’t falling and saying it doesn’t make it so.
The retail pharmacy sector is in trouble because of reimbursement pressure cited in our earnings report. Thing is, we created it with the PBM. The sector is in trouble because of our own greed. Earnings have been fueled by the PBM and there ability to leverage spread pricing, but that’s coming to an end. If it wasn’t shady, why would we spend millions on lobbyists? Health Hubs are going to push “affordable service” and provide NP’s, Dentist that couldn’t open their own practice(and not as good like Aspen Dental), and other services already provided by independent pharmacists for over a decade. The only new store layout that has stuck is y’mas. Merlo just keeps buying stuff to make earnings look good. Bunch of bs, I’m starting to look for a better place to be.
Rite aid, just basically fired their CEO and laid off 400 people from rite aid corporate offices. Rite aid is not great right now and is no longer considered a national chain anymore. They are now a regional chain. Oh how the mighty have fallen, and things aren’t great at Walgreens either! And yes cvs in trouble too. The ENTIRE retail pharmacy sector is in trouble! The Amazon effort is bigger than anyone realizes, plus ALOT of places, think Walmart and grocery stores, have pharmacies!
Yes things are DEFINITELY not good!
Thank you for posting this, I was beginning to think I was the only one who sees the ship sinking!