Dear Mr. Market, Why Do You Punish McKesson?

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About: McKesson Corporation (MCK)
by: Daniel Schönberger
This article is exclusive for subscribers.
Daniel Schönberger
Value, long-term horizon, dividend investing, long only
Summary

Mr. Market has punished McKesson for three years and the stock is in a downtrend, which is the result of negative sentiment surrounding the stock and the whole sector.

The horrible GAAP results, the slightly declining margins, and the opioid crisis are reasons why investors can be concerned, but no justification for the current valuation.

The wide moat due to the distribution system, the growth potential of the medical sector, and the low valuation make McKesson a clear buy.

Management is investor-friendly, and by increasing the share buybacks right now, management is proofing to act responsible.

Dear Mr. Market,

You probably don't know me, but I am watching you every day and watching almost all of your moves. Sometimes I am quite annoyed by you, and sometimes I am thankful for