Tag: noah kiedrowski

McKesson Jumps 34% Off Lows - Now What?

Posted on by Noah Kiedrowski

Noah Kiedrowski - INO.com Contributor - Biotech


Introduction

McKesson Corporation (NYSE:MCK) fell to a 52-week low back in February and has since surged 34%, appreciating from $148 to ~$200 per share as of mid-July. On February 16th, I published an article titled “McKesson Has Hit A 52-Week Low – Buying Opportunity” positing that McKesson has put in place a string of positive shareholder friendly maneuvers to position itself for future growth and break out of its slump. McKesson had hit a 52-week low and boasted a P/E of 16 and a PEG of 1.46 at the time. McKesson appeared very attractive considering its EPS growth, dividend payout, acquisitive mindset and share buyback program. Now that the stock has nearly breached the $200 level thus appreciating over 34%, now what? Continue reading "McKesson Jumps 34% Off Lows - Now What?" →

IBB: Brexit Collateral Damage Provides Brief Buying Opportunity

Posted on by Noah Kiedrowski

Noah Kiedrowski - INO.com Contributor - Biotech


As Brexit wreaked havoc on international financial markets, it presented a brief opportunity to capitalize on the collateral damage fallout within the biotechnology cohort. This event may continue to offer entry points as the reverberations are felt throughout the markets. I didn’t factor in the possibility that a major economic power within the EU would vote to relinquish its membership and move forward as an independent nation. However as Brexit became reality, I utilized this opportunity to deploy capital in the biotechnology cohort via the iShares Biotechnology Index ETF (NASDAQ:IBB) as a long-term investor within the space. As the UK proceeded with its divorce from the EU, markets sold off in a meaningful way. Brexit introduced instability throughout the region thus negatively impacting financial markets abroad. I largely view the Brexit as an extraneous event unrelated directly to the biotechnology cohort; thus I utilized this brief opportunity to add to my position in IBB and may continue to add in periods of weakness. Continue reading "IBB: Brexit Collateral Damage Provides Brief Buying Opportunity" →

Disney Continues To Deliver Robust Growth

Posted on by Noah Kiedrowski

Noah Kiedrowski - INO.com Contributor - Biotech


I recently wrote two articles highlighting Disney as an inexpensive growth opportunity for long-term investors. In my opinion, Disney presents a compelling case for long-term investors. My positive sentiment is rooted in many lucrative franchises such as Star Wars, Pixar, Marvel, ESPN and the legacy Disney brand turning out original content such as Frozen and more recently Zootopia. Disney offers a deep and well-diversified product portfolio that is set to provide growth, income and safety well into the future. This portfolio gives rise to a basket of entertainment income streams via movies, licensing deals, theme parks, TV programing, resorts and distribution rights. Disney stock has been under pressure as of late due to increasingly worrisome revenue declines from its ESPN franchise. I feel this decline in the stock is unwarranted, and analysts underestimate the ability of Disney to evolve to the consumer and monetize ESPN via other means. My views were recently echoed by analysts at Pivotal Research which upgraded the stock from a hold to a buy and raised its target price from $104 to $122. JPMorgan Chase also reiterated its buy rating and assigned a $118 target price. Disney has witnessed fantastic growth over the last decade and considering future catalysts in the pipeline; Disney appears undervalued. Disney currently sits at a P/E of ~18 along with a PEG of ~1.5 and has seen its stock fall from $122 to a current price of ~$98 or alternatively a 20% decline. Taking a look at its P/E ratio (currently 18 – in-line with the broader market average) indicates that it’s an average stock and I believe Disney is much more than the average stock. This presents a great buying opportunity in an inexpensive, high-quality growth stock. Continue reading "Disney Continues To Deliver Robust Growth" →

McKesson Posts Solid Fiscal Q4 Earnings - Concerns Remain

Posted on by Noah Kiedrowski

Noah Kiedrowski - INO.com Contributor - Biotech


Introduction

McKesson Corporation (NYSE:MCK) has been faced with a challenging healthcare landscape as political posturing, drug pricing scrutiny, overall sentiment towards pharmaceutical companies due to price gouging allegations and the overall rotation out of healthcare related stocks. This confluence of events has plagued McKesson’s stock, falling from $241 to $148 or 39% in just 9 months from May of 2015 through February 2016. MCK has been on an acquisition spree as of late and announced layoffs of 1,600 workers or about 4% of its U.S. workforce. These collective efforts are aimed to stem any losses in revenue from a hit to its customer base while continuing to drive value for shareholders. McKesson has acquired two medical firms that focus in oncology for a total of $1.2 billion and Ontario-based Rexall Health for $2.2 billion. McKesson is being proactive and aligning its cost structure in a fiscally responsible manner in order to remain competitive and add value to shareholders. At the writing of my previous article covering McKesson, it had hit a 52-week low of ~$150 in March. Since then, the stock has been on an uptick to current levels at $182 or 20% rise in its stock price. McKesson appears very attractive considering its EPS growth, dividend payout, acquisitive mindset and share buyback program however concerns remain. Continue reading "McKesson Posts Solid Fiscal Q4 Earnings - Concerns Remain" →

Will CVS Continue To Deliver Sustained Growth?

Posted on by Noah Kiedrowski

Noah Kiedrowski - INO.com Contributor - Biotech


Introduction

CVS Health Corporation (NYSE:CVS) had recently capped off a fantastic 2015 performance in several metrics (EPS growth, revenue, dividends, share buybacks and acquisitions) that drive shareholder value. I posted that CVS presented a compelling investment opportunity in the healthcare space. This premise was 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. 2015 was a record year for CVS and with a 21% boost in its dividend payout only underscores this premise. The release of its Q1 2016 earnings reiterates this premise and this company is maintaining its growth story. I content that CVS will continue to deliver sustained growth and position itself for long-term success to drive shareholder value. Continue reading "Will CVS Continue To Deliver Sustained Growth?" →