Standpoint Research Starts CVS Caremark (CVS) at Strong Sell; Adds to Blacklist on Moral Grounds

Standpoint Research analyst Ronnie Moas initiated coverage on CVS Caremark (NYSE: CVS) with a Strong Sell rating and a price target of $62.00 and added the stock to its Blacklisting on ethical and moral grounds and asking for consumer boycott and employee strike.

Moas explains:

I am initiating coverage on CVS with Strong Sell Recommendation and adding this (overvalued) name to those I blacklisted in Q1 on ethical and moral grounds. It was reported this past weekend that CVS has one of the highest gaps between CEO salary and median employee salary. CEO Larry Merlo: 2013 pay excluding stock grants and includes bonuses was $12.1 million. Median employee pay: $28,700. Ratio of CEO-to-worker pay: 422:1. This a disgusting example of the extreme capitalism that is so infuriating and nauseating to me and tens of millions of people in this country. Enough is enough. The shareholders are now sitting on $90 BILLION with Directors and Executives Brown, Piccolo, Benton and Merlo sitting on more than $50,000,000 worth of stock and taking home a combined $25,000,000 in pay for the year. According to my math the score right now is: Shareholders: $90 BILLION / Money in the savings accounts of the hundreds of thousands of workers who worked on the bottom half of the CVS ladder in the last few decades: Near Zero.

Consumers need to boycott rackets like this or at the very least cut back on what they spend. Employees need to strike until they are treated like human beings and not animals. There is no place in society for this anymore. CVS earned Net Income after taxes of $4.78 billion last year. They could have paid out a $7,000 bonus to every one of their 100,000 employees who are below $12 an hour and still turned a $4 bln profit. Unfortunately the greedy millionaire and billionaire shareholders have a problem with this. They want to continue to stuff their faces and bank accounts while others – the very employees who made the $4.78 billion possible -- struggle to survive.

Give everything to the shareholders and nothing to the employees -- Let the CVS employees work 40 hours a week for $500 and then return to their poor, rat, drug, prostitute and roach infested neighborhoods. How can anyone with a heart and conscience accept this?

And to add insult to injury, CVS is now replacing the cashiers who barely make more than minimum wage with check-out kiosk machines, so that they can turn a higher profit this year and pay the shareholders and insiders more than what they made in 2014. Kick the cashiers to the street and put more money into the millionaire and billionaire shareholders. This disgusting system needs to end once and for all – and it is going to!

I have received threats and lost some of my biggest accounts since making my political beliefs public. That is OK. I am going full steam ahead with this until I have no life remaining.

For an analyst ratings summary and ratings history on CVS Caremark click here. For more ratings news on CVS Caremark click here.

Shares of CVS Caremark closed at $76.57 yesterday.

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