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I'm long on CVS (at the moment), but from time to
time I like to look over my holdings and decide
whether they, er..., SHOULD be holdings !

Today, I saw an interesting article in the NY Times
about the possibility that there are too many retail
drug stores in NY City. It mentioned that CVS
just opened a superstore right across the street
from a big Duane Reade.

(Hope this link comes through):

http://search.nytimes.com/search/daily/bin/fastweb?getdoc+site+iib-site+106+0+wAAA+CVS

Now...I'm the first to admit that I don't know
anything about the strategy of locating new stores.
But it seems to me that only one of those new stores
is going to "make it"...and that the city is a
big enough pie that CVS could have chosen a different
slice.

Also....how do we know if a chain is over-expanding?
Yeah...CVS's same store sales growth has been good.
But...it looks like they're opening new stores at
a FRANTIC pace. And...the Soma buy...was it well
thought out?

I'd be grateful for your thoughts on these.....
and any other important issues regarding retail
stocks (especially the drug store sector).

Jack (in NY....where else?? <grin>)
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