1MCK trade ideas
McKesson after-hours guidance raiseAfter-hours today, McKesson raised its FY EPS guidance to 14.60-14.80, about 2% above the consensus analyst estimate of 14.41. Its last round of guidance was disappointing, so this reflects a significant improvement in the company's fundamentals. Even though the guidance bump was only 2%, it could catalyze a much larger move in the stock price, which was already trading at a low forward P/E of about 10. Today's guidance implies a forward P/E of more like 9.7 based on today's closing price. McKesson has been in an uptrend anyway, so fortunately for me, I already owned some shares.
MCK - DAILY CHARTHi, today we are going to talk about McKesson Corporation and its current landscape.
The opioid crisis has been plaguing the U.S at the most for nearly two years now. With scary numbers like the record of 47,600* overdose deaths caused by opioids in 2017 but the number seems to start slowdown since 2018 were the war against opioids gained some traction.
In the justice field, some companies have already faced some sort of rebuke for involvement and even a bit of responsibility for the opioid crisis. For example
*Jun 2019, Insys Therapeutics Inc. had to file for bankruptcy after being convicted for conspiring to bribe doctors to increase opioid sales, ending up in a deal with the federal government of $225 million.
* Aug 2019, Johnson & Johnson was obligated to pay $572 Million, as Oklahoma ruled that the company intentionally played down the dangers and oversold the benefits of opioids.
* Oct 2019, Johnson & Johnson was once more condemned by two counties of Ohio to pay $20.4 million, with the accusation of having helped the opioid crisis to spread.
Now, the drug distributor McKesson Corporation, is under investigation by the Federal Prosecutors in Brooklyn, into whether the company intentionally permitted that flood of opioids on the community. For now the U.S. Attorney’s Office in the Eastern District of New York it's just issuing subpoenas, but if they case sticks we might see what the murders of Julius Caesar saw, a pile of fire and anger from the people, so big that like Caesar butchers that were cast out of the city, the companies involved on this process can be drowned in liabilities and fines with the risk to be so badly damaged that may have the same fate of Insys Therapeutics Inc. The war against opioids it's just poised to grow up as every justice department across the country and every candidate that it's next to run on elections its eager to hang this trophy on the wall.
*Source: Centers for Disease Control and Prevention (CDC)
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MCK - Earnings Miss, Channel IntactMCK had a poor earnings report on October 30th but despite the falling price it still managed to hold the ascending channel. The stock price is right at the gap resistance level but with the stock trying to escape an oversold condition it looks to have a lot more room to rise.
I would be aiming for the resistance line of the ascending channel but $147.20 is the 61.8% Fibonacci Extension level which would be a good level to look for a pause in the rally.
$MCK - Inverse Head & Shoulder Setup with daily TD 9 I'm very bullish on $MCK and their 2020 plan. The drug distribution company is selling off due to FDA issuing warnings to all distribution companies for shipping "illegitimate" opioid products. I encourage you all to look at the software side of $MCK's business and the McKesson 2020 plan.
As for the charts, Daily TD 9 from Tone Vay's TD indicator + an inverse head and should forming.
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P.S: America Will Never Be a Socialist Country.
Short-term opportunity on MCKShort-term trade on MCK. The 15m chart shows a clean 5-wave decline from 160 to 142.50, with nice alternation between Wave-2 and Wave-4. A 3-wave correction back into the 50% retracement level offers a good short opportunity. Initiating a short position with an immediate target at 142.50. A move above 157.50 invalidates the setup.
MCK broken out of bearish channel set to slingshot One of the largest pharmaceutical drug distributors covering USA, Canada, Europe.
Showing some bullish signs after coming off a 2 year downtrend, broken out of bearish channel, established priced floor at 135 and moving average cross over.
relatively low PE ratio, beat earnings last 2 quarters with higher earnings projections moving forward according to analysts. Revenue and EPS growth seem to be picking up more as the company matures.
Based off history if momentum picks up could see $300 price in 2 years.
