ADDING TO OUR LONG TERM SHORT POSITION ON $ESRX (EXPRESS SCRIPTS)
As our readers know, we have a long term short thesis on $PBMs. Our thesis that in the long run $MHS and $ESRX risk disintermediation and more transparency in pricing has strengthened based on earnings this week. We are adding to our long term short position on $ESRX right here at $44.80 and will add more based on technicals if the stock goes higher. $MHS (Medco Health) earnings this week shows that our long term prediction is proving correct. Its margins fell to 6.35% as we had predicted compared to consensus of 6.8%. $ESRX (Express Scripts) managed to maintain its gross