Catalyst Health Solutions (CHSI) stock isn’t in your account anymore. The company has merged with SXCI Health Solutions (SXCI) and now CHSI has been replaced with Catamaran (CTRX). Here’s what CTRX looked like on its first day of trading Thursday.
One Year Chart
Both SXCI and CHSI were really hot stocks after they announced they would wed. The data used for this chart is from SXCI and you can see the merger news pushed the stock past $80, $90 and even $100. The stock is still on an uptrend, and the trend is your friend so CTRX should continue up.
Profit growth along the botton is excellent, as are estimates. This company is clicking right now. In the earnings history on the right there were two poor years in 2007 and 2008. This wasn’t a fast growth stock until 2011.
Fair Value
At 40 times earnings this stock is now rich. The company will make good profits next year because of the synergies created when the companies complete the merger internally.
Sharek’s Take
I like this stock. It’s a top stock in my Power Rankings, but I think shares of CTRX are a little high to buy right now. Hold on to what you have, and if the stock comes down to $83 (35 times earnings) then it would be a better buy.
View the Ten-Year Chart here.View the Earnings Table here.
