Thread regarding CVS layoffs

Moon Capital Management Liquidated CVS Health Corporation

Unfortunately, mismanagement by KL and her minions who overpaid for BS companies and failed to integrate them and develop a coherent and compelling strategy that the market needs or wants has led to the suffering of employees impacted by layoffs. Its su-ks. I know this firsthand. The market will now drive the decisions and lead to more suffering in the short and near team. I wish all impacted well and landing on the feet but don't wait. It's hard enough to find a new job in the economy but take the reins and search NOW.

https://finance.yahoo.com/news/moon-capital-management-liquidated-cvs-132234283.html

"We sold all our CVS Health Corporation (NYSE:CVS) shares in December at approximately $50 per share, achieving a modest (and disappointing) gain over our multi-year holding period. ......Over the past three years, the company has burned through more than $18 billion of its free cash flow on acquisitions of Signify and Oak Street Health. (Burned through” is a financial euphemism for “wasted.”)

"We sold all our CVS Health Corporation (NYSE:CVS) shares in December at approximately $50 per share, achieving a modest (and disappointing) gain over our multi-year holding period. While CVS has generated significant cash flow in recent years – a figure that is likely to grow in the near term due to its Medicare Advantage business – the intrinsic value of the company, has not seen a substantial increase. Over the past three years, the company has burned through more than $18 billion of its free cash flow on acquisitions of Signify and Oak Street Health. (Burned through” is a financial euphemism for “wasted.”)

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| 2411 views | | 8 replies (last January 13, 2025) | Reply
Post ID: @OP+1jhaxcb8s

8 replies (most recent on top)

I don't remember the name of the company and I couldn't find it with a quick Google search, but in 2021 or 22? They almost bought out another company, I want to say the shares jumped to like $10+ a share, and then I guess CVS realized the books of the company were really really bad, and got out of it. And the shares dropped to like $1. I believe the company is in bankruptcy now.

These are the kinds of companies CVS buys!!!

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Post ID: @kc+1jhaxcb8s

Our trust sold all CVS shares during the last "good news" a bit under 65. Still a big loss. Not touching any dr-g stocks right now esp. retail.

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Post ID: @fx+1jhaxcb8s

Most informative post of the year.

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Post ID: @f8+1jhaxcb8s

Moon Capital is a good value investment firm. They invest based on the value principles espoused by Ben Graham. Low price does not equate with value. CVS is a Value Trap. Think of it as a falling kn--e. The M and A firms are scratching their heads. It won’t be easy breaking it in 2 and loading one with all of the debt. PBMs are a thing of the past. The insurance side is under intense pressure from utilization. The old denial flim flam scams are being scrutinized. The answer was to embrace technology and efficiency and to coddle the workforce. Instead, KL shunned technology and intimidated the workforce. Now the worst of all worlds exists. There is a pile of debt that must be serviced, a demoralized workforce and two disparate pieces that weren’t properly integrated and will not do well on their own. Time for the HR shills to put their minuses on this post.

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Post ID: @f6+1jhaxcb8s

The two clowns from oak and sig took the money and ran. Criminals if you ask me

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Post ID: @ee+1jhaxcb8s

When it's this bad investment firms want to see EDs through senior VPs gone.

They want leadership back to when things were profitable.
They want retail closed. Laying off the kind of staff being laid off was never the right decision.
Making CVS Health into UNHG is no longer the solution.
Relying on MA is not going to save the company. Low member enrollment, a bad bid or another covid scenario with staff reduction still ongoing, heading into 2026 season...no thank you.

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Post ID: @c1+1jhaxcb8s

I guess investment firms are starting to catch on to how things really are behind the scenes. When you’re burning through your cash flow, and the business isn’t seeing any marked improvement, that’s a really big concern. Especially looking long term.

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Post ID: @aj+1jhaxcb8s

Great post. Thanks for sharing this!

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Post ID: @ah+1jhaxcb8s

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