@2khk+1c0MEkZZ wrote, a few years ago, that it is "delusional" to think CVS could go out of business.
Any comments?
5 replies (most recent on top)
I still don't see CVS going out of business in a timeframe that matters. If they tell us there's no bonus and no raises next year and they cut the dividend to preserve cash, then I'll be worried they may go out of business in a relevant amount of time. Do I care if they go out of business 40 years from now? No.
CVS is definitely in trouble. Not to the level of Rite Aid or Walgreens, but certainly heading in that direction.
The $18 billion acquisition albatross will continue to drag this company down. There's no dividend raises, buyback or other capital return on the horizon. Cvs will be trading water
The business model is obsolete. Consolidated Value Stores were junk stores. Larry Merlo extracted the second highest margin business and ran with it. It helped that he was a Pharmacist. He endeavored to make other Pharmacists, indentured servants. The highest margin business was cigarette sales which didn’t fit with a health company. They were late to the game with health services. The myriad lawsuits particularly with regard to opi--ds haven’t helped. The insurance business wasn’t integrated well. Can an antiquated business model with poorly integrated units fail? The answer is obvious.
Any company can go out of business.
The history books have chapters worth.
Yawn..