Just some food for thought regarding Glenview capital. Remember in the deal they made with CVS, they got 4 seats on the board. (In addition to obviously getting the CEO replaced as well) That said, with four seats on the board of directors, they want more than just a seat at the table, they want a say in how the company is operated. Glenview is private equity, remember that. Look at Walgreens getting bought out by private equity and already Sycamore has wasted no time making cutbacks. It might explain everything that’s happening right now at CVS. Private equity is behind the scenes calling the shots. And private equity is all about money and profits and maximizing value for investors, at all costs, and nothing else.
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@gm wtf are you talking about...hedgefunds invest in all companies.
Hedgefunds don't get involved with companies who have bright futures.
Like it or not. No one goes to standalone stores to shop. Target or Walmart, why make an extra stop,
Medcid and Medicare are in trouble.
Healthcare is in trouble.
And the US does not have the population to support the cost of any of it.
@ex Except look at all the formerly great companies that once were and are now no more. They all share one thing in common. Poor decisions by upper management, failing to get with the times, sticking with the same tired old business model, upper management not listening when people speak up about problems at the ground floor, etc., etc. This is CVS right now, and why (capitalism or not) they will eventually become the next big company to fail. Remember that leaders who fail to listen will eventually have no one to lead.
@ek I completely agree with you, but again, that's not how capitalism works anymore. There isn't enough money to be made like that for our oligarchs. Sorry, but you have to wake up and smell the pizza party. Your 1/16th slice is waiting for you.
@de If you don’t think long term about the future survival of your business, then one day CVS will become rite aid. Not to mention if PBM reform ever happens, (getting really close) that is another reason to be prepared for the future as opposed to this short term “what have you done for me lately” attitude.
Glenview is a hedge fund NOT PE. Hedge funds don't take companies private. Glenview reduced its stake (-25% in May) in CVS after it made its $ back.
That said, long-term solutions are in no one's interest. That doesn't work with capitalism any more.
@ap You support them gutting the company just to make a quick buck? Private equity firms only care about making money regardless of the after effects of their actions. PE firms are known for being cut-throat. Instead of that, what you should be looking for is long term solutions and ideas to help the company, not typical CVS short term solutions, which is right up PE's alley.
Cutting jobs, hours and staffing is and has always been short term answers to business' financial issues. But these things only hurt your company long term.
And as a shareholder I support this