China Nepstar Chain Drug (NYSE:NPD)

CAPS Rating: 2 out of 5

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1
Player Avatar ruffian56s (< 20) Submitted: 10/27/2010 6:37:08 PM : Outperform Start Price: $2.77 NPD Score: -70.85

I think Wall Street misinterpreted the health care reforms in China as a bad thing because of price controls on drugs but in the long run it should benefit Nepstar as more people will be in need of prescriptions and the drug manufacturers will bear the brunt of the pricing limits. The company looks like an investors dream on paper: no debt; generous dividend and uses the rest of the profits to grow the business.

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