I agree that USRX is a good buy at this level. But I'm not sure its price will rebound so quickly. |
CNBC stated that 20th Century Mut Fund sold 500K shares of USRX last night at 51. Worse, they still own some 8 million USRX shares. So USRX will be under pressure for some time, I believe.
USRX's CFO said on CNBC this morning that future Qs earnings will be in the neighborhood of 15%, down from the customarily expected 20%. He explained that, as revenues have grown so huge and continue to grow, it is unreasonable to expect the same % growth. Well, that goes without saying -- companies such as IBM, MSFT have seen the same thing happen with their growth. What he did not say, and which he should have added, is that with a larger USRX company comes less volatility, more stability, and the emergenge of a true blue chip company. Analysts are predicting the stock will be in the $90 to $115 range in a year. I can live with a 100% gain from here in one year. Besides, I still have a substantial cap-gain situation. So, I'm a long term holder. I'm posting this on SI and see if others agree with my position.