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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Spekulatius who wrote (18553)	2/3/2004 8:15:23 PM
From: gcrispin	Read Replies (2) \| Respond to of 78973

I bought MCK instead of ABC, although I might buy ABC if they hit my price. MCK, ABC, and CAH have 93% of the business. I owned CAH several years ago and rode it from the 30's to 60+. You are correct to say the organic growth rate is 13%. I am sure that you know the factors driving that. Demographics, new wave of generics coming to market, Medicare prescription plan: all these make for sailing with the wind. You might try to pull up the JP Morgan Healthcare Conference where all three companies made presentations. I bought MCK because I thought the comparisons going forward would be easier, and I want to wait to see if another shoe drops from the fallout of ABC losing the VA contract. I also checked the holdings of Vanguard Health Care Fund. They own all three companies, but have more dollars invested in McKesson. All three companies strongly reiterated that they want margin expansion. With future margin relief , increasing revenues and no foreign competition, I think this a good place to stash cash, especially if the high fliers cool off and the market becomes more defensive.