Caremark RX (CMX)

An excellent entry point. They are now the biggest company in the institutional pharmacy space in Canada. They supply medication to long term care facilities. They have 23% of the market share in Canada. They only really have one competitor, Shoppers Drugmart, who are really focused on retail customers. The stock is really cheap here and a long runway ahead.

Pharmacy Benefit Manager. Manage drug plans of big companies. Dropped from $60 in September. Caused by Wal-Mart’s $4 generic program, which he thinks is a non-issue. Good value.

Infrastructure is a big part of his investment process, so concrete is important. Stock is down a bit because of rumours of them making another acquisition. If that happens, the stock will probably stay flat and possibly drop a bit.

Will benefit from the increasing trend towards mail order subscription. Will also be increasing some generics. Could propel their earnings up 20% in the foreseeable future. Good price.

Health care is going to be an area of opportunity this year. One of the largest pharmacy benefit management in the country. Should see earnings growth explode.

Very profitable. Good price.