A former hedge fund manager and renowned investor, Paul Mampilly foresee looming trouble for investors following the interest of Amazon on Healthcare stocks. He encouraged investors in the healthcare industry to pay attention to the predictions of David Larsen who says that without a doubt, Amazon will make its way into the sector and every stockholder is bound to be affected. According to David, it is not a question of “if,” but “when.” Paul Mampilly describes David Larsen as one of the most reliable analysts as far as healthcare stocks are concerned.
Paul Mampilly believes that some of the stocks that Amazon will show interest in are the dividend-paying stocks. Paul argued that once Amazon targets a firm, its shares adopt a deteriorating trend and they are attached a “safe” tag – meaning that the business contains many barriers to entry, and https://stocktwits.com/paulmampilly.
Amazon is targeting the prescription drug market. People are unaware of the fact that drugs pass multiple transactions before they are packaged and sold over the counter. The process chain for these types of drugs only enriches the middlemen. According to Paul Mampilly, when a firm is Amazoned, higher focus is put on the efficiency and transparency of the price. Amazon usually targets some companies due to lack of transparency, and big pharmacy stores will therefore, be its prime choices because of the little-known complex chains associated with costs and rebates, and read full article.
Apparently, bringing transparency in this market place will reduce the amounts of money that intermediaries harvest. Paul Mampilly said that the stock market has since identified the threat posed by Amazon targeting big pharmacy stores such as Walgreens and CVS and the stock price is responding accordingly. For instance, since the spring of 2016, CVS has witnessed a 28% drop. Express Scripts has experienced the sharpest decline of 37% since the summer of 2015. Business has not been as usual at Walgreens either.
So, what next? Paul Mampilly cautions his followers against holding on to these shares? He also advises against falling into the temptations of buying them as he equates them to a death trap. According to him, the only good news is that the prices of drugs will be lower to the consumers.
— Paul Mampilly(@Paul_M_Guru) October 19, 2017
About Paul Mampilly
An investment guru, Paul Mampilly has held prestigious positions at Kinetics International Fund, the Royal Bank of Scotland and Deutsche Bank. He, later on, started focusing on his investments. He rose to fame when he turned a $50 million worth of investment into $88 million – making him win the Templeton Foundation competition. Born in Southern India, Paul moved to the US at age 18. He studied at Montclair State University, NJ and obtained a degree in finance and accounting. He got his MBA from Gabelli School of Business, Fordham University. He also has a background in financial engineering and economics.