G. Kahn

CVS Caremark Tumbles on Lost Business

I wondered what the politics here might be. The major contracts lost were NJ medicare (legendarily corrupt liberal gov), Ohio medicare (where the state authorities used their position to investigate Joe the Plumber) and Chrysler ... no mystery there.

I sold CVS a month or two ago simply because there is no way for me to know what the gov was going to do to the industry, or to individual players. Until Thursday it was looking like a bad sell, but the point isn't so much whether it's been up or down as that the fate of businesses lies increasingly in the hands of the grossly empowered political class, rather than in the hands of its management. Who wants to invest in that climate?