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To: Red in Blue PA
You point regarding day-traders is ludicrous as day-traders trade ALL stocks, not just CVS. Any more excuses you have why the stock is down?

"Any more excuses"? Nope. Just what I've been saying all along. It's short-term vs. long-term. In the short-term, this decision will likely lead to a net decrease in CVS's revenues (or, at best, they'll break even). In the long-term, given the long-term downward trend in smoking rates and upward trend in the sorts of quick-service medical consultations CVS is expanding, this decision will likely be a net positive for CVS's revenues.

The market--and particularly those traders who trade on news like this in the moments immediately following the news--tends to be biased towards short-term performance over long-term value. So, it is not unusual that a business decision that is likely to have a (small) immediate negative impact, but a long-term positive impact, will result in a (small) short-term (very short-term) decline in share price.

127 posted on 02/05/2014 9:03:15 AM PST by Conscience of a Conservative
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To: Conscience of a Conservative

If it was so easy to replace revenue, then all companies would be selling whatever products CVS will be selling. But it is not easy, an this is an in your face move to shareholders.


128 posted on 02/05/2014 9:05:56 AM PST by Red in Blue PA (When Injustice becomes Law, Resistance Becomes Duty.-Thomas Jefferson)
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