Saturday, May 24, 2008

Drugs Wholesale

For drugs wholesale, the following are my indicators:

1. Market cap > 1Billion US$
2. P/E < 18.45 (12.30 x 1.5)
3. ROE > 22.8%
4. Debt: Equity < 0.96 (0.48 x 2)
5. P/B < 18.6 (12.42 x 1.5)

For 1, the following were ok: ABC, CAH, HLF, MCK, and NUS
NUS drops out because of high P/E
For ROE, I was not so strict, allowing the companies to qualify with lower ROEs
Considering 4, only ABC and MCK remained.

Technicals:

Using technicals, ABC (Amerisourcebergen) shows a downtrend. I must wait for a reversal.
For MCK (McKesson Corp), it's prepare to buy. The uptrend is not yet established.

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