Alan Brochstein, CFA
Contrarian, growth at reasonable price, management change, cannabis stocks

Wounded By Walgreen: Cardinal Is Still Healthy

In March, Walgreen (WAG) announced a new distribution agreement with AmerisourceBergen (NYSE:ABC). Described by both parties as transformational, the news sent both stocks soaring subsequently. For every winner, though, is a loser, and in this case Cardinal Health (NYSE:CAH), which lost the contract, was hit hard, dropping more than 10% over the next two days. Clearly this was a surprise to the market, but investors were aware of the possibility of contract loss or renewal at a lower price, and it appears that the stock may have overreacted. CAH, up just 3% in 2013 and rather flat over the past two years, has trailed peers and the Healthcare sector in general and offers a good entry...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details