(By Bobs Advice For Stocks) I wanted to share with you what I call a 'swap' in my Covestor Healthcare Model last week. Centene (CNC) shares swooned last week after they lost a contract for the Ohio Department of Job and Family Services. I sold my shares at $43.49 and the stock already has bounced back to a slightly higher level!
I cannot deny that I have a little seller's remorse, but I have also noticed that stocks after a sharp decline often have a bounce higher, but way once again move lower into the future.
Anyhow, I picked up some shares of McKesson (MCK) with the proceeds. One of the first times I reviewed McKesson was back on January 1, 2004, literally over 8 years ago right here on this blog! (The years have really flown by here!)
At that time the stock was trading at $32.16. MCK closed at $90.48 on 4/13/12, so the stock really has done very well since that post.
Let's take a closer look at MCK and let's see if it is still was wise to pick up shares now that the stock has nearly tripled in price since I first visited it!
According to the Yahoo "Profile" on McKesson, the company
"...delivers medicines, pharmaceutical supplies, information, and care management products and services for the healthcare industry."
Unlike Centene (CNC) which suffered from a loss of a contract, McKesson (MCK) has been strong recently due to a continuance of a contract with the Department of Veteran affairs (VA).