Never buy a stock just because you like a stock though sometimes that’s a very tempting reason. This was the state of CVS stock back in January 2018
CVS Health = CVS Pharmacy store + CVS Pharmacy Benefit Manager (Prescription management) + and now its buying Aetna
One of the most dramatic transformation happening in Pharmacies— Deepak Singh (@smarket) January 18, 2018
There are times when you wonder what else can go wrong in a stock. But as a Price Action follower – I am never tempted to buy a stock just because the stock has run out of reasons to decline. You need +ve catalyst even for down and out stock. I found that reason in May
Is CVS a buy after 3 years of underperformance?
Dividend Yield: 3%
The company has seen first big insider buying of its shares from Company Chairman and top executives at $62.
Market anxious about Aetna deal? pic.twitter.com/S7ACu8L88z— Deepak Singh (@smarket) May 21, 2018
This is what has happened to the CVS trade
Value Buying works like magic if you follow price action and you pick the right place at the right time
Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers