Post by
JustforFun7 on Oct 22, 2015 12:17pm
VXR and CXR are not the same (true and false)
VRX is under investigation by Justice but CRX is not.
VRX is subject of short seller report, CRX is not
But VRX and CXR are in the business of selling drugs.
Make no mistake, money is leaving the healthcare industry for a reason. The party is over. .
Can the changes occuring effect future profits of companies selling drugs in this sector. Yupper.
I think that is why VRX and CXR continue to be pressured downward. The big picture in the healthcare industry is changing but people just don't know where it will end...they only know the direction (down) but not how far.
I'll be the first to admit that I know little of the healthcare industry in the US. But if you look out past the drug sellers you see companies like hospital service providers dropping big time. There is more to the story to VRX and CXR than just the channel stuffing and short seller report taking advantage of things.
The gist of it seems to be that the ratio of clients paying for healthcare services and products is moving from private coverage in a decline to government covered increasing. In the past couple of years, private coverage patients have been increasngly bilked by ever increasing costs so that profits can remain high but that game has run it's course. Now that profits can no longer be sustained by these games the pendulum is swinging....If the private insurer covered clients is shrinking and the costs they can be charged has reached the saturation point, who will pay?
increase the cost of services to government covered patients? That will meet with resistance in every turn. The government can't pay for itself these days let alone incrased costs. Goverrnement controlled costs seem to be the future.
I will stay in CXR for the trade because I believe it will bounce when the downward pressure on the helathcare sector pauses at which point CXR should rebound. But my long term expectations are that future profits will be under a lot of pressure in the years to come. I will be long gone by then.
JFF7
Comment by
ruben12345 on Oct 22, 2015 12:22pm
i like your point to one extent and that is compared to oil. When oil first tankd people couldnt believe it as they didnt see the sector issues overall. It took some time before people realized the bigger picture. Now we are at a stge where everyone understand oil at $45 is pretty reasonable with a clear cause. Not saying i'm right here, but should not be ignored
Comment by
adamchess on Oct 24, 2015 2:44am
I have to strongly disagree. Healthcare costs are always increasing and pharma costs are a necessary part of the equation and pharma companies will continue to get their share of the funds and profits. Government cannot put a lid on it. They have to pay through higher taxation somehow.