Huge Early Drop For Generic Healthcare Companies

Quick Look At Earnings

There was a huge early drop for generic healthcare companies.  It took down McKesson (MCK), Cardinal Health (CAH) and AmerisourceBergen (ABC).

Losers: OPXA -68%. STON -44%. SNMX -43%. CEMP -20%. MCK -17%. NVO -14%. ABC -13%. CAH -11%. GT -9%. TDOC -6%. ABBV -6%. AMZN-5%.

I will keep an eye on this, I own Cardinal Health and they are due to report on Monday.  All three rank very highly on Simple Safe Dividends, here are Cardinal’s stats:

cardinal_health

Top notch safety and growth, the dividend is a very small portion of free cash flow.

cah_10282016

The stock was already undervalued per Fast Graphs, this doesn’t even capture what today’s drop will due to the multiple.  Looks like a solid opportunity for holders of any of the three companies.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>