+ Watch CTRX
on My Watchlist
The Company provides healthcare information technology solutions and pharmacy benefit management services to the pharmaceutical supply chain in the US and Canada.
The very ambiguous way CTRX announced " a nominal dividend on the issued and outstanding common shares of the Company to effect a two-for-one stock split."Well no it is NOT a dividend, it is yet another stock split, another dilution, that's it that's all.Not much has changed since I last "downgraded" the previous SXC, which was my highest points earning on My CAP, since I do not play very actively.I had closed the position because the stock was gaining some strength, due partly to analysts high targets, partly to short covering.The short float has now diminished to a comfortable 0.95%.The insiders have only sold more, the higher the price went, and since over a year not one insider has bought (except for one small position a few days ago).Catamaran was present at the CIBC Institutional Investor Conference (September 13), and I do not know if important upgrades will come out.But it is surprising that right the day after, the stock start going down.The year-over-year revenue growth of 115.7% was tremendous: is this sustainable?SXC was together a growth and a defensive stock, even without a dividend.Everyone talks about APPL: SXC was certainly the Apple of the techno-pharmaceutical companies.In the past 5 years, APPL has beaten the Nasdaq by more then 400%... and SXC by more then 600%!APPL has started to give a dividend, CTRX / SXC has not.CTRX has more competitors then it used to.My negative call could be only for a few weeks, and sometime after the split, the stock might make a come back.But (like Cisco), once a prestigious company is not a fantastic growth stock anymore, it should buy back stock (CTRX makes the opposite, because it does not sits on "tons of cash"), and distribute a dividend, and this will be very difficult.And finally, but not the least, my concern is about the acquisition of Catalyst Health Solution at a price of $4.14 billions.I am not sure if this will bring real returns before many, many years: I have calculated approximately 35 years!
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