Classic TA Workplace Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Classic TA Workplace

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: ajtj99 who wrote (74476)	5/23/2003 3:23:10 PM
From: reaper	Read Replies (1) of 209892

aj, this is only one person's humble opinion, but i'm betting that you (and others) will be surprised by who comes out ahead in the CVS / RAD steel cage match in 5-years time. CVS is in not nearly the financial shape that people think they are. despite spending a cumulative $3.9 billion on new stores and acquisitions in the last 4 years (which is more than the cash they have generated), cash generation (net income + depreciation & amortization) is only $114mm higher than it was 4 years ago. let's see -- spend $3.9 billion for an incremental $114mm of cash flow. doesn't sound like a very good return to me. i actually liken CVS to McDonalds, circa early 2002. MCD had very similar financial characteristics (re-investing all the cash flow into the business, but not getting any return for it in terms of increased cash generation) before the bottom fell out last year. Cheers

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next