Q: ESRX:Q is going to be acquired by CI:N by Dec 2018 and holder of ESRX will receive $48.75 in cash and 0.243 shares of CI. In my case I will be receiving less than 25 shares. Hence I like to sell ESRX:Q before conversion and want to invest in some other US health stock. Should I keep odd number of CI:N or you have some better alternative in US health sector? I own ESRX:Q and BAX:N in Healthcare sector.
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Investment Q&A
Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.
Q: According to BloombergBusinessWeek , Cigna’s offer to buy ESRX.us includes $15 billion in debt, and Cigna will pay $48.75 in cash plus 0.2434 shares per Express Scripts share. That is approximately $96.03 per share , says Bloomberg. Yet in the past 2 days (8 and midday 9 March) ESRX shares have traded in the range US$79 – 85. This is noticeably lower than the offer valued at $96.
Do you see this as an opportunity to buy more ESRX? Or should an ESRX holder just wait and see? OR, do you think it is best to manage risk and sell ---even if price is 10 to 15% below current offer from Cigna. Is deal risk higher than most on this offer, given upheavels seen by pharmacy benefits managers and pharma chains like CVS?
Do you see this as an opportunity to buy more ESRX? Or should an ESRX holder just wait and see? OR, do you think it is best to manage risk and sell ---even if price is 10 to 15% below current offer from Cigna. Is deal risk higher than most on this offer, given upheavels seen by pharmacy benefits managers and pharma chains like CVS?
Q: The future of Pharmacy benefit managers (PBMs) remains unclear to me even after I worked my way through financials, analysts’ comments, analytics and commentaries in the more serious financial journals. CVS and ESRX appear to have been hit hard this year by the mere possibility being whispered ---- that Amazon might enter the pharmacy markets. Amazon might well do that just as they might start their own delivery service to compete with FedEx and UPS.
But surely even mighty Amazon cannot drink ALL the water in ALL the oceans.... or can they? The latter might well be confirmation bias in my reptilian brain.
I had largish positions in CVS and in ESRX. Whereas I had previously decided to ride things out, I have now trimmed at largish losses. I have reviewed past questions here on both CVS and ESRX, including my own past questions.
1. Do you care to update your answers in view of the seemingly unstoppable powerhouse that is Amazon?
2. What would you suggest a risk-tolerant (but not completely imprudent) investor do on each of CVS and ESRX?
3. Sell all and hide under the bed? Buy AMZN with the proceeds? Just PRAY?
4. I spent many hours ploughing through detailed reports on each of CVS and ESRX. Yet I am just as undecided after these reviews as I was before. Almost all analyses that I read say that both CVS and ESRX are under valued; that each is either a buy or a strong buy. I grant that the latter could have been confirmation bias in my reptilian brain.
5. What are YOUR insightful thoughts on the PBM business model in view of (a) possible Amazon threat (with reasons if you would please)
6. Since US Gov policy changes would make significant impact on all PBMs, although you might prefer not to incorporate the current instability in US politics into your own equations, I think in this case, please if you can make an exception and incorporate the political landscape into your comments, that would be very helpful.
7. I would be thankful for your substantive response on each of CVS and ESRX separately as their businesses have significant differences.
But surely even mighty Amazon cannot drink ALL the water in ALL the oceans.... or can they? The latter might well be confirmation bias in my reptilian brain.
I had largish positions in CVS and in ESRX. Whereas I had previously decided to ride things out, I have now trimmed at largish losses. I have reviewed past questions here on both CVS and ESRX, including my own past questions.
1. Do you care to update your answers in view of the seemingly unstoppable powerhouse that is Amazon?
2. What would you suggest a risk-tolerant (but not completely imprudent) investor do on each of CVS and ESRX?
3. Sell all and hide under the bed? Buy AMZN with the proceeds? Just PRAY?
4. I spent many hours ploughing through detailed reports on each of CVS and ESRX. Yet I am just as undecided after these reviews as I was before. Almost all analyses that I read say that both CVS and ESRX are under valued; that each is either a buy or a strong buy. I grant that the latter could have been confirmation bias in my reptilian brain.
5. What are YOUR insightful thoughts on the PBM business model in view of (a) possible Amazon threat (with reasons if you would please)
6. Since US Gov policy changes would make significant impact on all PBMs, although you might prefer not to incorporate the current instability in US politics into your own equations, I think in this case, please if you can make an exception and incorporate the political landscape into your comments, that would be very helpful.
7. I would be thankful for your substantive response on each of CVS and ESRX separately as their businesses have significant differences.
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Express Scripts Holding Company (ESRX)
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Brookfield Business Partners L.P. (BBU.UN)
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Trisura Group Ltd. (TSU)
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Brighthouse Financial Inc. (BHF)
Q: I have acquired shares in several new companies over time, as a result of spin-offs. Sometimes these are terrific, such as BIP.UN. I'd like to either add to some of these 'stub' positions or sell them to keep my number of stocks manageable. Can you please divide these four companies between (in your opinion) 'worth keeping and adding to', or 'sell to redeploy the proceeds elsewhere'. The four are Trisura (TSU), Brookfield Business Partners (BBU.UN), Express Scripts (ESRX) and Brighthouse (BHF), recently spun off from MetLife. Thank you!
Q: I have had ESRX.us for some time. I show a loss (it's down another >5% just in recent months). The company pays no dividend. Are its prospects good enough to advise patience? (I can’t use the tax loss). I saw your comment on CVS on Oct 7. That comment prompts me to ask you whether ESRX is worth holding? I looked at some analyses done by 'less superficial' analysts. I found opinions are at significant variance. I therefore ask your opinion , which would be more substantive and more trustworthy. Your opinion on what might be the optimal action would be very helpful. Thank you.
Q: ESRX
missed targets and down 5-10%. is it time to get out or buy more?
missed targets and down 5-10%. is it time to get out or buy more?
Q: Could give me your opinion on Express Script (ESRX)? Would it be expected to benefit from obamacare? I know it is not your main field of expertise but would nonetheleass like to hear what you have to say.