Company Overview - CVS Health (NYSE: CVS) has experienced a significant stock price decline to $49 due to concerns over PBM (Pharmacy Benefit Manager) reform following an FTC lawsuit alleging abusive practices such as rebate retention and price manipulation [1] - PBMs contribute nearly half of CVS's operating income, making the company highly sensitive to regulatory changes in this area [1] Industry and Regulatory Impact - The FTC lawsuit has raised fears about potential reforms in the PBM industry, which could significantly impact CVS's profitability given its heavy reliance on PBM operations [1] Analyst Background - Yiannis Zourmpanos, founder of Yiazou IQ, is an experienced analyst with a background in auditing and consulting at Deloitte and KPMG [1] - Zourmpanos holds professional qualifications including Chartered Certified Accountant and Fellow Member of ACCA Global, with BSc and MSc degrees from UK business schools [1] - The analyst's investment style focuses on GARP/Value stocks, prioritizing high-quality businesses with strong moats and growth potential, trading at a discount to intrinsic value with a margin of safety [1] - The investment approach emphasizes long-term wealth accumulation (5-7 years) through compounding, downside protection, and sometimes taking contrarian views during market uncertainties [1]
CVS's Sell-Off May Be Overblown