MONDAY, NOVEMBER 23rd, 2020
Watch the replay below
WEEKLY POSITION MONITOR UPDATE
Enter your questions for Tom & Will into the chat box below.
On Monday’s Health Care Webcast, we will cover:
- Amazon is Coming to Healthcare | We held a call with David Green who has years of experience in the drug channel, from Caremark to Express and a host of key roles across. We touched on Walmart, CVS, GoodRx and a host of drug channel topics with a focus on identifying the winners and losers from Amazon's deepening entry into Healthcare.
- GDRX Added to Long Bias | We have added GDRX to our Long Bench. The sudden decline following AMZN's drug coupon product announcement seems overdone. We don't believe the customer overlap between Amazon Prime and GoodRx is going to be high enough to put GoodRx membership at risk. We have some preliminary demographic data that shows a significant separation across the key income levels. We also think GoodRx is one of a handful of Healthcare companies with a novel attribute not usually connected with Healthcare investing, brand equity. We think the value from owning the relationship with the Medical Consumer will be steadily increasing from here.
- What's Happening Under the Hood of the “Garbage Rally?” | We think it will be useful to check in on the fundamental momentum underneath the garbage rally. On average Healthcare is in MicroQuad 3 and decelerating, which raises the probability of a negative outcome compared to the momentum we saw all through the COVID-19 recovery. Are the garbage rally stocks just late to rally, true COVID19 vaccine recovery stories, or are the fundamentals actually turning? Because the MicroQuad methodology is standardized, we can measure estimate momentum by factor groupings such as debt leverage, multiples, beta, and short interest.
- Hospital CFO Call Recap | It sounds like hospital capex is on a tight leash heading into 2021 according to our conversation with a Hospital CFO at a large southeast system. We'll recap our findings on nurse staffing trends (AMN), capex (HRC), and telemedicine adoption (AMWL, TDOC).
CLICK HERE to access the associated slides.