CVS Health Corp (CVS)

Best-run, widest healthcare business in the US. In so many areas. Free cashflow generator. Debt is manageable, and it's being reduced. 8x earnings. Foot traffic and consumer spending are down. Competitive pressures, but he expects them to gain more business than they're losing (as from Blue Shield). Yield is 3.68%.

Not good news, can't sugar-coat it. Often there's an overreaction to these situations. He's waiting for follow-up comments. Market's waiting to see how it deals with all the disruption. Trash-bin multiple of 7x. Expects over $8 EPS this year, more than in 2015 when stock hit highs.

It is a pharmaceutical company with an insurance division as well. There is a regulatory overhang on pharmaceutical companies that can limit profit. He doesn't know where the the next growth catalyst is so doesn't own.

Down around 20% YOY. Really likes the vertically integrated healthcare business model. Very low valuation with high free cashflow yield. Concern is always regulation. Acquisition integration is challenged short term, but should come online longer term just fine.

They've had a terrible 9 months. A downgrade, taking on debt and lowering earnings estimates on 2 acquisitions (Signify, Oak Street). They're sandbagged. There will be good results next week. Good valuation. Sentiment has changed.

Benefited during Covid, now fallen off. Diversified. Attractive multiple. Keeps acquiring to broaden its offerings. Not sure what catalyst is to get valuation multiple up. She owns other companies in healthcare.

Healthcare sector has been challenged, but growth rates will be robust over many years. Vertically integrated powerhouse. Very high free cashflow yield, in the low teens. Trades at 9x earnings. Unloved, but patience will pay off.

It's been frustrating this year, down 25% probably due to the Oak Street and Signify deals earlier this year. CVS lowered guidance regarding the cost of these deals, but these will be accretive long term. He likes CVS long term. You can buy it now.

It has been in free fall in recent months. It is not just a drugstore anymore but is venturing into primary care and health insurance. Its profit margins could be less because many surgeries postponed during the pandemic are now being done. Wait for it to settle.

Only about 1/3 is health insurance. This week's announcement of more elective surgeries will impact them less. Vertically integrated. Unique, defensive exposure for a Canadian investor. 8x PE, massive free cashflow.

Healthcare as not performed well this year.
Technology attracting lots of investor money in the short term. 
Long term, demand for healthcare is strong.
Recent M&A and company re-organization has negatively impacted share price.
Current share price presenting value - however waiting to see how company stabilizes.

Excellent company for long term investors.
Healthcare demand very strong.
Boomers will require lots of health care going forward.
Recent M&A not a concern.
Diverse business with many revenue streams.

Health care business a very good long term sector.
Strong business with defensive characteristics.
Excellent business fundamentals.
Management very strong with deep experience.
Sees a lot of potential for business.

A long-term holding for him. Had a great 2022, but a disappointing 2023. He reduced his holding last September and March due to valuation and higher costs. It still trades at a premium within healthcare. 

Very low multiple, and has for many years. It's diversifying vertically. It never seemed to come through with earnings, so she decided to focus on more concentrated plays in healthcare such as pharma or medical devices.