Administrative/medical play with a good dividend

3

Strong Buy - Price 58.35 on Sept. 9
by Raymond James

This health-care-services company's [prescription] distribution was generally positive; MCK appears well-positioned to benefit from the ongoing generic wave, aided by its longstanding manufacturer and customer relationships. MCK remains our top pick among the Big Three Rx distributors. We expect...margin expansion, driven by its stellar generic distribution franchise, evolving health-care [information-technology] division, and capital deployment. 2008 EPS, $3.34; estimated '09 EPS, $3.82; 2010E EPS, $4.34; P/Es are, respectively, 17.5 times, 15.3 times, and 13.4 times. Market cap: $16.5 billion.

Citigroup downgraded three drug wholesalers -- ABC, CAH and MCK --to Hold. Higher copayments may cause the consumer to use fewer drugs in an economic downturn. Prefer PBM's and Managed Care stocks at current levels.

It will get me a new car

Former Employee

solid financials, entrenched leader, growing market

local,CEO lives in same house for 20 years showing frugel

sleeper healthcare

McKesson (MCK) was upgraded from Hold to Buy, Citigroup said. $70 price target. Estimates also raised, as the company has improved its generic relationships.

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