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Cardinal CFN spin-off
Posted by: Kiko81780 (IP Logged)
Date: November 2, 2009 01:05PM



Cardinal Health (CAH) spun-off Care Fusion (CFN) at the beginning of September. I have not done a lot of analysis on it, but the fact that it's P/B ratio is less than 1 certainly caught my attention for a healthcare company. Could this be partially driven by the amount of Goodwill CAH stuck them with? Any thoughts on this one in general? Looks very inexpensive compared to others in the industry.


Stocks Discussed: CFN,
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Rating: 1.0/5 (2 votes)



Re: Cardinal CFN spin-off
Posted by: commodity (IP Logged)
Date: November 2, 2009 01:57PM



Stocks Discussed: CFN,
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Rating: 1.3/5 (3 votes)



Re: Cardinal CFN spin-off
Posted by: harison (IP Logged)
Date: November 3, 2009 10:56AM



Don't look at P/B, except in the case of net-nets. Look at the stream of free cash flows the company should produce and discount them by an appropriate rate.


Stocks Discussed: CFN,
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Rating: 2.3/5 (4 votes)





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