One Stop Shop Model At CVS Over? (CVS)

It appears that CVS Caremark CVS won't be CVS Caremark much longer, as the company looks like it's going forward with splitting the company in two. According to this article from Bloomberg, some shareholders think the company would be worth as much as $25 billion more if the company were to seperate into two units: drugstores and pharmacy benefits. If the company were to break up, the two companies could be worth as much as $73 billion, when using valuations given to competitors Walgreen's WAG and Express Scripts ESRX. This is a rise of 51%, and if traders and investors believe this, then perhaps now is the time to get into shares. “They're under the gun and need to turn this around,” said Maria Mendelsberg to Bloomberg. Mendelsberg is a money manager at Cambiar Investors. Cambiar currently owns some 3.8 million shares of the stock. “They're at a crossroads. People are just losing their patience. If they were separate, the combination would be worth more than where the stock is today.” Despite calls from investors, and speculation that the company will split itself up, the company remains steadfast that it will not do so, and there are no plans to split the company. “There are no plans to split up the company,” Carolyn Castel, a spokeswoman at Woonsocket, Rhode Island-based CVS Caremark, said in an e-mail to Bloomberg. “We are uniquely positioned to continue to develop and implement programs that meet our goals and enhance shareholder value.” At last check, shares of CVS were up 85 cents to $36.32, a gain of 2.4% on the article.