April 17, 2018
Big day for the stock market. Netflix reaches new high of ~$336. Unsure how Netflix's impressive subscriber growth makes it a similar company in size (~155B) as the powerhouse of entertainment, Disney. NYU Valuation Professor Aswath Damodaran agrees as he recently priced $NFLX around a $175 price per share value. Value investors shorting $NFLX are getting EMBARRASSED however, so I'll stick to buying stocks instead of shorting them.
In other news, Amazon backed off from selling pharmaceuticals to hospitals which is a short term win for companies such as: McKesson, Cardinal Health, CVS, Walgreens, which have been hit hard over the past few years. I decided against investing in Walgreens, although it seems to be a low risk investment with high uncertainty. Mohnish Pabrai looks for these type of investments, however the recent performance of $WBA and size of the company ~60B market cap keeps me away.
I'm tracking Express Scripts. I didn't mention them above, but $ESRX is in the same boat as these other pharmacy benefit management (PBM) companies. I was delighted in a way to look back at this article today, May 21st, to see I thought this was an attractive industry. Express Scripts is dealing with a sell off from losing its biggest customer 2 years ago, however, I feel like they suffered too hefty of a sell-off.
June 22, 2019
$73 - $ESRX cost basis. $97 exit from a merger in late 2018.
Credit to TIP for the finding: https://www.theinvestorspodcast.com/intrinsic-value-index/
