One Or The Other

This morning I bought Walgreens calls and CVS common stock. I bought Walgreens CALLs because I believe there will be a resolution to the dispute with Express Scripts. I bought CVS stocks because I believe it is cheap and if I am wrong about the Walgreens dispute, CVS stands to win a lot of business both on the pharmacy and PBM side.

1 comment:

A said...

WAG would do everything it can to stop the ESRX + MHS merger, unless it gets a favorable deal out of ESRX. For the alternative for it is to go with Caremark, which is a no no given the latter is owned by direct competitor CVS. This implies that the merger will likely be held up on antitrust grounds until their is a WAG/ESRX long term deal. I therefore agree that WAG has an edge here. I, however, don't think CVS stands to win because WAG going to Caremark is somewhat of a non-starter, and unless Caremark undercuts ESRX - in which case it won't be very profitable for CVS.