Noah Kiedrowski, Author at INO.com Trader's Blog

CVS Delivers A Strong 2015 And Presents A Compelling Buying Opportunity

Posted on February 23, 2016February 22, 2016 by Noah Kiedrowski

Introduction

CVS Health Corporation (NYSE:CVS) has just capped off a fantastic 2015 performance in several metrics (EPS growth, revenue, dividends, share buybacks and acquisitions) that drive shareholder value. As 2016 begins, CVS presents a compelling investment opportunity in the healthcare space. This premise is based on the fact that CVS has been highly acquisitive, continues to deliver robust growth, growing its dividends over time and has an aggressive share buyback program. CVS recently reported a record year in 2015 and continues to drive and position itself for long-term success. With its recent acquisitions and partnerships, specifically, the acquisition Target’s pharmacies and Omnicare will significantly expand its footprint and ability to dispense prescriptions to the general public and in assisted living and long-term care facilities that serve the senior patient population. As the United States continues to absorb an aging population alongside growing overall healthcare costs, more specifically prescription drug costs, CVS looks poised to benefit and continue to outperform the broader market. The most recent earnings report, a record year in 2015 with its rise in its 2016 outlook and a 21% boost in its dividend payout underscores this premise. I content that CVS will continue to deliver continued growth and positioning for long-term success to drive shareholder value. Continue reading "CVS Delivers A Strong 2015 And Presents A Compelling Buying Opportunity" →

McKesson Has Hit A 52-Week Low - Buying Opportunity

Posted on February 16, 2016 by Noah Kiedrowski

Introduction

As the political cycle unfolds into 2016, the entire healthcare cohort has posted shape declines, this was particularly true for McKesson (MCK). This shape decline coincided with heated political rhetoric aimed at the collective cohort of healthcare and more specifically biotech related companies. The cynical sentiment by political frontrunners was largely rooted in the pricing of drugs and cost effective medical access. As candidate threats via legislative action geared towards reining in the costs of drugs unfolded, these actions negatively reverberated through healthcare and biotech stocks alike. The political posturing surrounding potential plans to reign in drug costs are now largely priced into many stocks within the healthcare umbrella. I contend that after the recent sell-off, many healthcare stocks look attractive at these levels, specifically McKesson. Once the political cycle is complete in 2016, these stocks will likely benefit from the mere absence of political headwinds. McKesson has now hit a 52-week low and boasts a P/E of 16 and a PEG of 1.46. McKesson appears very attractive considering its EPS growth, dividend payout, acquisitive mindset and share buyback program. Continue reading "McKesson Has Hit A 52-Week Low - Buying Opportunity" →

As 2016 Rolls In Are You Utilizing A Health Savings Account (HSA) As A Second Retirement Account?

Posted on February 3, 2016February 3, 2016 by Noah Kiedrowski

Introduction

Corporations are always searching to decrease costs and reduce expenditures pertaining to medical expenses. More companies than ever are now offering High Deductible Health Plans (HDHPs) with a companion Health Savings Account (HSA) option. Two-thirds of companies with 1,000 employees or more are offering this HDHP/HSA option. The popularity of the HDHP/HSA combination has increased substantially over the past decade. As of 2014, 17.4 million people were enrolled in HDHP/HSA compared to a mere 3.2 million in 2006. In brief, an HDHP is a pre-tax medical plan that requires the employee to shoulder the cost of medical expenses out-of-pocket up front to a defined dollar amount to satisfy a deductible. Once this deductible is reached the traditional medical plan provides coverage. In addition to reducing medical expenses by shifting the cost burden to the employee, the employer circumvents the 40% excise tax that the Affordable Health Care Act will impose on high-value insurance plans beginning in 2018. These plans may be a win-win for both the employer and employee over the long-term. Continue reading "As 2016 Rolls In Are You Utilizing A Health Savings Account (HSA) As A Second Retirement Account?" →

Will Political Headwinds For Biotech Subside In 2016?

Posted on January 4, 2016 by Noah Kiedrowski

As the political cycle unfolded throughout 2015, the entire healthcare cohort posted shape declines, this was particularly true for the biotechnology sector. Using the iShares Biotechnology Index ETF (ticker IBB) as a proxy for the biotechnology sector, this cohort fell from $401 in July to $284 in September or alternatively a 29% decline. This shape decline coincided with heated political rhetoric aimed at the collective cohort of healthcare and more specifically biotech related companies. This cynical sentiment by political frontrunners was largely rooted in the pricing of drugs. As candidate threats via legislative action geared towards reining in the costs of drugs unfolded, these actions negatively reverberated through healthcare and biotech stocks alike. The political posturing surrounding potential plans to reign in drug costs are now largely priced into many stocks within the healthcare umbrella. I contend that after the recent sell-off the biotech cohort looks attractive at these levels. Once the political cycle is complete in 2016, these stocks will likely benefit from the mere absence of political headwinds. Additionally, as the candidate pools thin out many remaining candidates gradually move towards the middle to appease a broader audience. Taken together along with the difficulty of enacting any legislative action to regulate the industry this may represent a buying opportunity that’s been presented by extraneous political events. Continue reading "Will Political Headwinds For Biotech Subside In 2016?" →

CVS Boosts Dividend By 21% And Raises 2016 Outlook

Posted on December 23, 2015December 23, 2015 by Noah Kiedrowski

Introduction

I have posted that CVS presented a compelling investment opportunity in the healthcare space. This premise was rooted in the fact that CVS has been highly acquisitive, continuous robust growth rate, growing its dividends over time and has an aggressive share buyback program. CVS recently reported robust earnings and continued to drive and position itself for long-term success. With its recent acquisitions and partnerships, specifically, the acquisition Target’s pharmacies and Omnicare will significantly expand its footprint and ability to dispense prescriptions to the general public and in assisted living and long-term care facilities that serve the senior patient population. As the United States continues to absorb an aging population alongside growing overall healthcare costs, more specifically prescription drug costs, CVS looks poised to benefit and continue to outperform the broader market. The most recent earnings report, rise in its 2016 outlook and a 21% boost in its dividend payout underscores this premise. I content that CVS will continue to deliver continued growth and positioning for long-term success. Continue reading "CVS Boosts Dividend By 21% And Raises 2016 Outlook" →

Author: Noah Kiedrowski

CVS Delivers A Strong 2015 And Presents A Compelling Buying Opportunity

Introduction

McKesson Has Hit A 52-Week Low - Buying Opportunity

Introduction

As 2016 Rolls In Are You Utilizing A Health Savings Account (HSA) As A Second Retirement Account?

Introduction

Will Political Headwinds For Biotech Subside In 2016?

CVS Boosts Dividend By 21% And Raises 2016 Outlook

Introduction

It’s not goodbye, it’s hello Magnifi!