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November 05, 2009 – Comments (2) | RELATED TICKERS: BRK-B , CVS , REV
Buffett type plays Oversold on over-reaction "CVS" down nearly -7.5 REVlon still a value play "REV" BRK.b will become cheap enough for the average joe to buy shares. 50-1 split. I expect a big jump in BRK.b shares prior to split and after split.
I agree with your view on CVS. I had a position in CVS and upon seeing the stock drop 20%, I bought more shares. I feel that the company was reasonably priced before, and now they announce that it had a $3 billion net contract loss (+1.4 bil, - 4.5 bil). This isn't good, but by no means does it decrease company value by 20% like the immediately share price drop would make one believe.
I have no idea where this stock is going to go in the next few weeks or months, but in the long run, this 20% drop is going to look silly. CVS apparently even predicted such an over-reaction beacuse today, the same day they released this bad news, they announced an authorization of a $2 billion common stock buyback. So they're keeping the option open for themselves to buy stock back on this over-reaction.
Revlon is NOWHERE near a Buffett play.. he would never ever ever buy a company who's book value is so far in the negative or had nearly 1.3 billion in debt!
UltraLong
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