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On Mar 16 I suggested selling CVS short, since then it went from 50 to 40, back to 50 and now heading down again. While I would not short the stock anymore, it remains to be seen if the stock has much more momentum in the short term. In spite of the CVS annoumcement of internet ordering, the higher P/E retail drug stocks like Walgreen and CVS still appear slightly weak. Meanwhile, Rite Aid, Long Drug's and Omnicare (which corrected significantly) have been moving higher.

I would speculate that CVS will do better in any internet space versus a company with no brick & mortar stores. Not only is branding more important in pharmacies than other products but it would stand to reason that since many prescriptions must be filled in a local store that those same customers might be more inclined to stay with the same chain that they use locally. So for the long term, I would expect that CVS can achieve more growth and perhaps maintain or increase it's relatively high P/E.
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