ESRX Inverse Head & Shoulders
By Johns Wu on Jul 25, 2006
The gap up on ESRX, Express Scripts Inc., caught my eye today.
ESRX has broken out of a downtrend and what appears to be an inverse head and shoulders stock chart setup. Also notice the symmetrical triangle upside breakout.
This entry was posted on Tuesday, July 25th, 2006 at 1:25 am and is filed under Annotated Analysis.
You can skip to the end and leave a response. Pinging is currently not allowed.
One Response to “ESRX Inverse Head & Shoulders”
Leave a Comment
Recent Blog Posts
- What to do about Nucor
- Shortcake ?
- Putting it to the X
- Why it's NOT time to Short Apple and Visa
- Follow Up on WLT
- JPM
- Stashing Cash in Savings Accounts
- Shorting V
- USO Stock Chart (Short Oil?? Call me crazy)
- Throwing out the Chart on AMZN
- Walters Industries
- Mastercard Again
- D R Horton
- EMC
- Broadcom
- Covance
- RIMM
- Cat Stock Chart
- Turning $5,000 into $400,000..UNREAL
- Resistance Broken!
- Best looking chart seen in a while (MELI Stock Chart)
- WSCI - WSI Industries Inc
- Resistance Holding up
- Dont fight the trend. (MOS Stock Chart)
- UTVG - Universal Travel Group
- Havent Done Your Taxes Yet??
- Mastercard
- Costco
- Bottom or no bottom, That is the question.
- Is the Apple Still Rotten?
Subscribe
   |
 |
We certainly like the stock here: Unlike most other pharmacy benefit management companies, Express Scripts — which boasts 50M members and a 58,000 retailer/pharmacy reach — is not controlled by a large pharmaceutical manufacturer or drug retailer. This freedom allows Express Scripts, which writes 400M prescriptions per annum, to negotiate deeper discounts, contract with more retailers, and buy direct from manufacturers, not only squeezing a little more profit from the tightly margined business, but avoiding cataclysimic conflicts of interest that may arise from links to drug companies. At 28 x, ESRX looks affordable: the firm grew its EPS 45% over the last 12 months and its top line by about 10% over the same time period. We’d be buyers on a breakout, no doubt.