When done correct value investors can win in a number of ways.  So long as you have done your analysis correctly and the stock is truly undervalued there are a number of ways in which that value gap can close.  The biggest risk in that situation is dead money.  Last month we highlighted CVS in a screencast noting it was likely undervalued with a potential upside catalyst.  A month later the stock is higher based largely on news that activists are agitating for a spin-off of the company’s pharmacy benefits manager.  In short, he stock is higher for reasons unrelated to the original hypothesis.  In today’s screencast a review of stock catalysts.

Items mentioned in the above screencast:

Breakup values point to a higher price for CVS shares.  (Bloomberg)

A catalyst for CVS.  (AR Screencast)

Walgreens (WAG) to sell its PBM unit.  (WSJ)

A daily price chart of CVS (CVS).  (Finviz)

Update:  CVS also catches an analyst upgrade.  (Barron’s)

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