I just don’t understand Wall Street. The FirstDatabank/Mckesson story clearly was bad news for pharmacies/ PBMs are essentially big pharmacies and it was bad news for them as even your punk blogger here pointed out on Friday morning. But that was known at the open of the market on Friday and the stock fell heavily on Friday. But why the heck did it fall further today?
MEDCO HEALTH SOLUTIONS
Wasn’t that information already in the market? Apparently not—because a downgrade from an analyst based on that information meant that the stocks fell another 3–5% from Friday’s levels today? So if you realized that the market was even dumber than the employers who use PBMs, then you too could have gone short on Friday and cleaned up this morning. (Yes of course I didn’t).