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

To: Paul Senior who wrote (56934)	2/19/2016 10:46:20 AM
From: Graham Osborn	Respond to of 78751

I like AMGN more than CELG. Be careful of MCK/ ABC/ CAH though - razor thin margins amidst likely generic deflation and revenue growth through value dilutive partnership with Rite Aid. The retail pharmacies get their pound of flesh for the added volume and the revenue growth comes out largely prosthetic. I don't know the details of the MCK/ RAD agreement as well as I do the ABC/ WBA agreement but I would expect some similarities. OT: If you want more background on the economics of the healthcare distribution business here's an article I wrote on ABC: seekingalpha.com Disclaimer: this article may contain bearish views.