CEO David Trainer sat down with Chuck Jaffe of Money Life to talk about our Danger Zone pick this past week: IQVIA Holdings (IQV).
Overpriced acquisitions to grow the topline have destroyed shareholder value and exposed this company to significant data security and privacy risks. These issues, combined with an overvalued stock raise red flags.
2 replies to "Podcast: Why IQVIA Holdings is in the Danger Zone"
Value Line just added IQVIA to their model portfolio #1 this week, which is their portfolio of stocks with above-average year-ahead price potential.
They rank it as a 1 (the top score) for timeliness and a 3 (average) for safety. I believe IQVIA paid a lot for their acquisition, but its in the past and the stock price should represent the future prospects of the business. So I think its what happens going forward that is important.
Hi Jim:
Thanks for your feedback.
Value Line’s research is much less rigorous than ours. I would expect that our ratings differ from our is lots of ways.
Just b/c the acquisition is in the past does not mean its economic costs do not persist.
With respect to future prospects, did you see our analysis of the future cash flows required to justify the stock price?