| Stock (Symbol) | Stock Price | |
Catalyst Health Solutions (CHSI) |
$54 |
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| Data is as of | Expected to Report | Sector |
June 21, 2011 |
Aug 1 |
Healthcare |
| Sharek’s Take | ||
 Catalyst Health Solutions is the same place it was a quarter ago — sitting around fair value. This company is great and a good long-term buy-and-hold stock. It’s just ended a run and needs some time before moving higher.
Catalyst was acquired big PBM businesses: FutureScripts from Independent Blue Cross last year and Walgreens’ (WAG) PBM unit this year and the WAG business should increases its customer base from 7 million to 18 million. 2013 should be when WAG PBM profits start rolling in, so profit growth for now isn’t increasing much now. |
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| One-Year Chart | ||
 CHSI has had a solid year. The stock has gone from $35 to $55, and that’s good for this stock. Sometimes CHSI seems to wander like an unleashed puppy.
Overall, 25% profit growth is the norm give-or-take. That’s why the 24 P/E is in black — this stock is where it shoudl be. |
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| Earnings Table | ||
 Revenues rose 35% last quarter, partially due to aquisitions, and profits were up 33%.
CHSI beat by 3 cents last quarter, and has had a good year of beating the street, but sometimes the company issues stock to fund aquisitions, which causes it to miss estimates. Annual Profit Estimates got a big bump up in 2013 from $3.27 to $3.57. A 25 P/E on $3.57 gets us a $89 in two years (65% higher than now). Quarterly estimates look good, but nothing to write home about. |
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| Fair Value | ||
 I still think CHSI is worthy of a 25 P/E. That puts the stock within 6% of its Fair Value. Upside for 2012 is good, I won’t be selling out of this stock. |
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| Ten-Year Chart | ||
 Catalyst was formerly named HealthExtras (HLEX). I bought HLEX for the Growth Portfolio on 5/4/2004 at $14.
In the bottom-right corner notice profits have grown 72% a year during the decade. A closer look at the Annual EPS Growthshows profitswent from $0.01 to $0.19 in 2001-2002 so that has sqewed this number. Right now this is a 25% grower. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
13 of 21 |
Catalyst Health Solutions is like it was last quarter. The stock is good but fairly valued right now.
CHSI is the 13th best stock in the 21 stock Growth Portfolio Power Rankings. CHSI isn’t in the Aggressive Growth Portfolio. |
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Aggressive Growth Portfolio
N/A |
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